Discover how much does Google Ads cost, Google Ads cost models and how to select the right for your business to maximize profits.
How much does Google Ads cost? It’s a reasonable question, and one we hear all the time, especially from newcomers to paid search. After all, those new to PPC are probably most interested in how much they’ll be expected to shell out to advertise on Google, and whether they can even afford it!
Unfortunately, there’s no easy, one-size-fits-all answer. The clearest (and most infuriating) answer we can provide is: “it depends”.
This is because the cost of Google Ads depends on several variables we will cover all of these variables and more to help you decide whether you should use Google Ads:
1) Define exactly how the Google Ads auction works.
2) Discuss the variables that influence the cost of a Google Ads campaign.
3) Demystify the concepts you’ll need to understand in order to set a realistic budget for your Google Ads account.
Finally, I’ll wrap everything up into a neatly packaged “key takeaways” section just in case your head is in a spin after all of this (which is totally normal). But don’t worry, you’re going to be fine. Let’s get into it.
How does Google Ads Work?
In order to get a true grasp on what Google Ads will cost you, you first need to understand how the platform works. And one of the biggest misconceptions about Google Ads is that advertisers with the most money to spend have the most influence. While a bigger ad budget never hurts, Google Ads is actually a more level playing field than many new advertisers realize.
What is Google Ads Auction?
Google Ads functions in essentially the same way as an auction. Let’s take a look at how this process works.
When a user types a word or phrase (known as a search query) into the Google search bar, Google then looks to see if that query contains keywords that advertisers are currently bidding on. If Google Ads advertisers are actively bidding on any of the keywords in the user’s search query, the ad auction begins.