The average small business using AdWords spends between $9,000 and $10,000 per month on their Google paid search campaigns. That's $100,000 to $120,000 per year. HOWEVER, even a statistic as firm as this one would not be the right answer to the question.
So How Much Does Adwords Cost?
It depends…that’s the best answer that you’re going to get, given the way the whole adwords system works.
Google Adwords is unlike any other marketing channel when it comes to pricing. The very nature of how the system works makes it impossible to give a hard and fast response with respect to cost:
First of all, Google doesn’t employ sales people who go around acquiring leads and converting them into customers with pricing information.
Furthermore, Adwords is based on a pay-per-click model, which means you only shell out some money to Google if a searcher takes an action—that is clicks on your ad, and visits your website. If that does not happen you don’t pay Google a cent!
And lastly, but maybe most importantly, Google does not set a specific price for each click that transpires during your Adwords campaign. Rather, the cost for each click is determined by way of auction, along with a few other variables. This system is one that allows the cost of each click to vary, and this is the principal reason why it is not possible to quote an exact figure to answer the question “How much does Google Adwords cost?”
Depending on how things go, some clicks will cost more while others cost less.
You need not worry though; you can set a maximum daily budget for your campaign which Google will not exceed, and with a few tools and a little arithmetic you can determine an appropriate Google Adwords budget or cost for your business.
Setting Your Adwords Budget and Determining Cost
With the way Adwords works the cost-per-click may vary. However, you can still get a good estimate of what the cost is likely to be for keywords relevant to your industry or niche. With that estimate you can then come up with an appropriate budget which your business can allocate towards Google Adwords, and also determine the number of visitors you can expect to yield from that set budget.
Here’s how it works:
- Step 1: Use the Google Keyword Planner to find out approximate Google Adwords cost for keywords that are relevant to your business
- Step 2: Choose a reasonable Adwords budget for your business that can be spent on clicks. Don’t break the bank; choose a budget that you are comfortable with.
- Step 3: Divide your chosen budget by the average cost per click for your keywords, and you’ll know how many new potential customers you can expect to visit your website through Adwords.
So, while it may depend on a few variables, and also vary from time to time, the answer to the question: “How much does Google Adwords cost?” is actually easy to calculate for your business. Just don’t ask for a specific figure.
Contact Eternity today and we can start a conversation about your Google Adwords strategy.