4 Ways to Know your Ads Budget on Google Ads

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With the growth of digital marketing, Google Ads has become one of the main allies when advertising for your business. This platform helps you position your company by showing your service or products in user search results, but a persistent question for many is how much does Google ads cost?

More than 80% of small and medium-sized businesses run ad campaigns on Google Ads as part of their digital marketing strategies. While there is no set amount that is the same for each and every business, the average cost per click (CPC) on Google Ads is between $0.50 to $2 for the search network.

Small and medium-sized businesses typically spend between $200 and $1,000 per month for their Google Ads campaigns, which typically represents a return of investment (ROI) of $8 for every $1 spent.

1. Know the Google Ads cost variables

As we mentioned, the cost of Google Ads may not be the same for all businesses and this is due to factors or variables that make it vary.

Industry: The price varies depending on the market of your category, this is because the supply and demand of goods or services is not the same for everyone (affecting the cost of the advertisements), making them cheaper or more expensive.

CPC: It is the abbreviation for cost per click, so depending on the type of company and the number of clicks you want to reach, the value of a Google Ads campaign can increase or decrease.

Amount of keywords: To generate keywords and include them in the ad, you must pay a higher price, and this will be based on the "popularity" of the keywords you want to use. You should consider that the most expensive keywords in Google Ads can cost up to $48 or more per click. Why are they expensive? Because these are the words that hook the buyer and are therefore highly competitive in areas that generally have high value for the consumer.

Size of your business: Following the logic, small advertisers will invest less compared to those enterprises already formed and better positioned. In the USA, large companies spend approximately $40 to $50 million a year in Google Ads paid searches to maintain their position in the market.

Quality rating of your ads: Google Ads gives a rating to your ads, depending on the quality of their image, copy and other factors of your campaign. Therefore, ads with a low rating will cost more and vice versa.

2. Set a budget for Google Ads?

Advertising is the most effective way for a brand to reach a potential consumer and currently, Google Ads represents one of the best alternatives to boost your business through the web.

The platform is responsible for creating an advertising campaign that attracts potential consumers to increase the visibility of the website and sell a service or product.

However, although Google Ads is an intuitive tool that many can learn to use, it is better to have the help of professionals in various areas of marketing to support you in creating effective advertising material.

The team of professionals at Creatum Studios can help you develop the right Google Ads strategy for your business to achieve the goals you have set. Get in touch with us and request a personalized proposal.

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