In 2020, global advertisers spent nearly $140 billion on online advertising. Pay-per-click (PPC) advertising on Google is an important segment of this industry.

You can invest in this advertising channel using Google AdWords. Even if you don’t, your competitors most likely do. In other words, if you don’t take a proactive approach to online advertising, you could get left behind.

Keep reading to learn more about the answer to the question, “How much do Google Ads cost?”

What Is Google Adwords?google ads

Google AdWords is the original name for what’s now called Google Ads. Google Ads advertising is another fantastic way to boost website traffic.

The platform allows advertisers to place bids on select keywords. This process enables companies’ ads to show up on different websites. Google publishes the ads using a Display Network and its AdSense program.

Google Ads is the world’s leading PPC channel. It has one of the best returns on advertising investment.

For every $1 spent, advertisers typically earn $2.

Understanding Google Ads

Google Ads works using an auction system. For instance, you’d start by selecting a list of keywords relevant to your business. Now, you can bid on them. Marketers call this complex system pay-per-click advertising.

In other words, you must specify how much you’re willing to pay when a user clicks on your ad. Google will then combine your bid with other factors.

For example, the company might combine your bid with the quality score of your ad. It will then use these calculations to figure out where your advertisement will show up in search engine results.

How Much Do Google Ads Cost?

Of course, if you’re going to invest in Google advertising, you want to know the answer to the question, “How much are Google Ads?”

Google Ads pricing will vary because the platform works using an auction system. Imagine that you’re buying a painting at auction. It doesn’t have a fixed price.

The final price of your painting will vary depending on other bids. The price will increase depending on what others are willing to spend.

Likewise, Google Ads works much in the same fashion. The cost of your ad will vary depending on the popularity of the keyword and how much your competitors are willing to spend.

Getting to Know the Google Ads Landscape

Some industries and keywords are highly competitive. Think about the difference between buying a painting from a local artist and a world-class painter.

You can set whatever budget you’d like for Google Ads. However, you may not win the best spot if your bid is too low.

The trick with Google Ads, however, is to understand that winning the best spot isn’t all about money. You need to understand the different things that go into creating effective Google advertising.

Google Ads Spending for Small Businesses

As a business owner, you must invest enough in your Google ad spend to ensure that you see meaningful results. In other words, a small budget of $100 at a time will not suffice.

If you’re lucky, you might get a handful of clicks. Still, this small amount is a waste of money.

On average, a small business should spend about $1,000 per month on advertising. We’ll take an even closer look at figuring out Google Ads campaign costs in a moment.

It’s equally as important to manage your Google Ads campaign effectively. The better you manage your ads, the less you’ll spend per click.

Finally, it’s essential to ensure that your ads resonate with your brand message. For example, you should create ads that complement the other advertising assets you must manage, like social media and other forms of advertising.

Making the Most of Your Investment

Better management equals a better return on your investment. For instance, you must research the best keywords for your business. You must also write effective ad copy.

In addition, you must design an excellent landing page. You must also constantly monitor your campaign after execution. It’s also crucial to stay current with the new features in Google Ads.

You may not have the skills to perform all these tasks, and that’s fine. Many companies hire an experienced digital marketing agency to manage Google Adwords services. A partnership with the right consultant can help you succeed online.

The Varying Costs of Advertising on Google Ads

The average price per click for Google Ads is around $1 to $2 per click. You could even spend less than a dollar on the Display Network.

However, some industries are so competitive that clicks cost $10 to $20 each. These companies might spend tens of thousands of dollars every month on Google Ads.

As a business owner, it’s vital to establish an advertising budget that’s realistic for your business and industry.

The Benefits of Google Ads

Google Ads is effective. It allows you to determine the best ad spend for your needs. Again, the platform typically delivers a return-on-investment of two dollars for every dollar you spend.

It makes sense to want to know how much it will cost you to use Google Ads to acquire customers. However, the cost for Google Ads isn’t the same for all businesses, even if you operate in the same industry.

Also, the cost for your ads can vary depending on which Google network you use. It can also vary depending on your country, your audience, and your industry.