{"id":52721,"date":"2020-07-27T10:01:31","date_gmt":"2020-07-27T18:01:31","guid":{"rendered":"https:\/\/adespresso.com\/?p=52721\/"},"modified":"2020-07-31T06:18:28","modified_gmt":"2020-07-31T14:18:28","slug":"google-ads-cost","status":"publish","type":"post","link":"https:\/\/adespresso.com\/blog\/google-ads-cost\/","title":{"rendered":"How Much Does Google Ads Cost? Here&#8217;s How To Create Your Budget"},"content":{"rendered":"<p>Investing in a PPC platform like <a href=\"https:\/\/adespresso.com\/guides\/google-ads-beginners\/\">Google Ads<\/a> can have a significant impact on your business.<\/p>\n<p>In fact, according to Google, the average advertiser on their platform makes two dollars for every dollar they spend.\u00a0That means the majority of people on the platform are doubling their investment.<\/p>\n<p>It all sounds nice in theory, right?<\/p>\n<p>But what if you start a campaign and get surprised with a nasty price tag?<\/p>\n<p><img decoding=\"async\" class=\"aligncenter size-large wp-image-70659\" src=\"https:\/\/adespresso.com\/wp-content\/uploads\/2020\/07\/create-adwords-budget-2020-1024x536.jpg\" alt=\"\" width=\"1024\" height=\"536\" srcset=\"https:\/\/adespresso.com\/wp-content\/uploads\/2020\/07\/create-adwords-budget-2020-1024x536.jpg 1024w, https:\/\/adespresso.com\/wp-content\/uploads\/2020\/07\/create-adwords-budget-2020-300x157.jpg 300w, https:\/\/adespresso.com\/wp-content\/uploads\/2020\/07\/create-adwords-budget-2020.jpg 1200w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/p>\n<p>It\u2019s much better to research.<\/p>\n<p>So, how much will Google Ads cost for your business? How much will it actually cost you to get a customer?<\/p>\n<p>In this article, we\u2019ll cover the latest data on cost per click for your industries as well as how to use Google\u2019s own tools to forecast your ad spend.<\/p>\n<p><!--more--><\/p>\n<p>This way, you\u2019ll know what to expect and can get started with Google ads with realistic goals and expectations.<\/p>\n<p>Read on so you can start your first Google Ads campaign on the right foot.<\/p>\n<h2><b>How Much Does Google Ads Cost?<\/b><\/h2>\n<p>Google Ads (previously AdWords) uses an ad auction model, so there is no set cost for a single ad.<\/p>\n<p>Companies create campaigns, and what they are willing to pay affects their <a href=\"https:\/\/support.google.com\/google-ads\/answer\/1722122?hl=en#:~:text=Google%20Ads%20calculates%20Ad%20Rank,eligible%20to%20show%20at%20all.&amp;text=Your%20bid%20%2D%20When%20you%20set,a%20click%20on%20your%20ad.\">ad rank<\/a> (which controls whether their ad wins and shows up or not) along with relevance and other factors.<\/p>\n<p>Each keyword and display ad placement holds an auction for every new user.<\/p>\n<p>This means that the Google Ads pricing is fluid, depending on what your competitors are bidding for the keywords, locations, and audiences you choose.<\/p>\n<p>Depending on your industry, location, and competition, keywords can cost as low as a few cents or as high as a couple hundred dollars.<\/p>\n<p>If you\u2019re targeting high competition keywords with high commercial intent (and high potential value), you\u2019ll end up spending a lot of money. But the possible ROI is also a lot higher.<\/p>\n<p>Let\u2019s take a closer look at some of the industry CPC differences in 2020.<\/p>\n<h3><b>Google Ads CPC By Industry in 2020<\/b><\/h3>\n<p>The CPC of a keyword depends on the potential value of a customer.<\/p>\n<p>So industries with high customer lifetime value and a relatively short sales process have become extremely competitive on Google Ads.<\/p>\n<p><b>Just look at the latest data from March 2020:<\/b><\/p>\n<p><img decoding=\"async\" class=\"alignnone wp-image-70993 size-full\" src=\"https:\/\/adespresso.com\/wp-content\/uploads\/2020\/07\/google-ads-cpc-by-industry-2020.jpg\" alt=\" Google Ads average CPC by industry\" width=\"1371\" height=\"1281\" srcset=\"https:\/\/adespresso.com\/wp-content\/uploads\/2020\/07\/google-ads-cpc-by-industry-2020.jpg 1371w, https:\/\/adespresso.com\/wp-content\/uploads\/2020\/07\/google-ads-cpc-by-industry-2020-300x280.jpg 300w, https:\/\/adespresso.com\/wp-content\/uploads\/2020\/07\/google-ads-cpc-by-industry-2020-1024x957.jpg 1024w\" sizes=\"(max-width: 1371px) 100vw, 1371px\" \/><\/p>\n<h4><b>Average Google Ads CPCs by industry (search only, excludes display and YouTube ads):\u00a0<\/b><\/h4>\n<ul class=\"list-custom points-list\">\n<li>Insurance: $18.57 avg. CPC<\/li>\n<li>Online education: $14.04 avg. CPC<\/li>\n<li>Marketing and advertising: $7.4 avg. CPC<\/li>\n<li>Legal: $6.97 avg. CPC<\/li>\n<li>Internet and telecom: $5.94 avg. CPC<\/li>\n<li>Online banking: $5.08 avg. CPC<\/li>\n<li>Car dealership: $2.47 avg. CPC<\/li>\n<li>Home and garden: $2.09 avg. CPC<\/li>\n<li>Fitness and health: $1.98 avg. CPC<\/li>\n<li>Cryptocurrency: $1.87 avg. CPC<\/li>\n<li>Travel: $1.86 avg. CPC<\/li>\n<li>Beauty and skincare: $1.7 avg. CPC<\/li>\n<li>Real estate: $1.6 avg. CPC<\/li>\n<li>Jewelry: $1.31 avg. CPC<\/li>\n<li>Pharmaceuticals: $1.24 avg. CPC<\/li>\n<li>Fashion retail: $1.19 avg. CPC<\/li>\n<li>Electronics: $0.83 avg. CPC<\/li>\n<\/ul>\n<p>Insurance, online education, marketing, and advertising services, legal, internet, and telecom, are the most expensive industries, with insurance topping the pack at a whopping $18.57 avg CPC.<\/p>\n<p><b>A single insurance-related keyword click costs almost 20 dollars, on average.<\/b><\/p>\n<p>Companies in most of these industries typically market subscription services, where the customer pays a monthly fee for a long time.<\/p>\n<p>Because a single customer can be worth so much, this drives up the Google Ads search PPC as well.<\/p>\n<p>On the other end of the spectrum, electronics keywords cost only $0.83 on average.<\/p>\n<p>But it\u2019s not just the industry that affects the CPC.<\/p>\n<p>The difference in location also means different spending power among customers, which impacts advertising costs.<\/p>\n<h3><b>Average Google Ads CPC by Country<\/b><\/h3>\n<p>Countries with high general living expenses typically show a much higher average Google Ads CPCs.<\/p>\n<p>The statistics below show the combined average CPC from Google Ads, Bing Ads, and other SEM platforms by country:<\/p>\n<div id=\"attachment_70532\" style=\"width: 1319px\" class=\"wp-caption aligncenter\"><img decoding=\"async\" aria-describedby=\"caption-attachment-70532\" class=\"wp-image-70532 size-full\" src=\"https:\/\/adespresso.com\/wp-content\/uploads\/2020\/06\/image14-1.jpg\" alt=\"Average SEM CPC by country 2018\" width=\"1309\" height=\"951\" srcset=\"https:\/\/adespresso.com\/wp-content\/uploads\/2020\/06\/image14-1.jpg 1309w, https:\/\/adespresso.com\/wp-content\/uploads\/2020\/06\/image14-1-300x218.jpg 300w, https:\/\/adespresso.com\/wp-content\/uploads\/2020\/06\/image14-1-1024x744.jpg 1024w\" sizes=\"(max-width: 1309px) 100vw, 1309px\" \/><p id=\"caption-attachment-70532\" class=\"wp-caption-text\">(<a href=\"https:\/\/www.statista.com\/forecasts\/1081157\/cpc-search-engines-by-country-ecommercedb\">Image Source<\/a>)<\/p><\/div>\n<p>Switzerland and Norway, two notoriously expensive countries, lead the charge, at an average CPC for paid search at $0.8 and $0.77 per click a piece.<\/p>\n<p>There are also significant differences in CPCs in different regions, cities, and even neighborhoods within the same country for the same reason.<\/p>\n<p>But since these higher CPCs usually reflect an increase in spending power, you shouldn\u2019t avoid them unless you test them and see a negative ROI.<\/p>\n<p>Often, you can experience a much higher conversion rate or average order value from more expensive areas.<\/p>\n<h3>Average CPC by Device<\/h3>\n<div id=\"attachment_70541\" style=\"width: 1074px\" class=\"wp-caption aligncenter\"><img decoding=\"async\" aria-describedby=\"caption-attachment-70541\" class=\"wp-image-70541 size-full\" src=\"https:\/\/adespresso.com\/wp-content\/uploads\/2020\/06\/image5-4.jpg\" alt=\"Average CPC by device 2018-2019\" width=\"1064\" height=\"739\" srcset=\"https:\/\/adespresso.com\/wp-content\/uploads\/2020\/06\/image5-4.jpg 1064w, https:\/\/adespresso.com\/wp-content\/uploads\/2020\/06\/image5-4-300x208.jpg 300w, https:\/\/adespresso.com\/wp-content\/uploads\/2020\/06\/image5-4-1024x711.jpg 1024w\" sizes=\"(max-width: 1064px) 100vw, 1064px\" \/><p id=\"caption-attachment-70541\" class=\"wp-caption-text\">(<a href=\"https:\/\/kenshoo.com\/reports-and-whitepapers\/quarterly-trends-report-q119\/\">Image Source<\/a>)<\/p><\/div>\n<p>The combined average for both display and search ads shows a unified trend where mobile clicks are cheaper.<\/p>\n<p>In Q1 2019, the average mobile CPC for a digital ad was $0.42, and a single desktop click cost $0.73.<\/p>\n<p>All this data should give you a decent idea of what it might cost you for a single ad.<\/p>\n<p>But, when you\u2019re trying to answer the question of how much a Google Ads campaign will cost, it\u2019s not enough to look at averages.<\/p>\n<p>One of the biggest mistakes in launching a PPC campaign is failing to do the proper research before jumping in.<\/p>\n<p>Based on your industry, you could be paying anywhere from a few cents a click to twenty bucks.<\/p>\n<p>But even within each industry, there are huge variations in keyword costs and average costs per click.<\/p>\n<p>To get some more relevant data, you need to research individual keywords that your business is likely to target in your area.<\/p>\n<h2><b>How To Forecast Your Google Ads Costs With the Keyword Planner<\/b><\/h2>\n<p>Forecasting your ad budget means first figuring out what your ad cost might need to be.<\/p>\n<p>If you\u2019re not sure of which keywords to search for, try brainstorming what people usually search to find your business.<\/p>\n<p>For example, do you run a flower shop? If so, people likely search for \u201clocal flower delivery\u201d or \u201clocal florist.\u201d<\/p>\n<p>If you still can\u2019t think of anything, you can also use the keyword planner in Google Ads for free.<\/p>\n<p>Head to your account and open the keyword planner:<\/p>\n<p><img decoding=\"async\" class=\"alignnone wp-image-70533 size-full\" src=\"https:\/\/adespresso.com\/wp-content\/uploads\/2020\/06\/image1-3.jpg\" alt=\"Google Ads menu keyword planner\" width=\"1199\" height=\"315\" srcset=\"https:\/\/adespresso.com\/wp-content\/uploads\/2020\/06\/image1-3.jpg 1199w, https:\/\/adespresso.com\/wp-content\/uploads\/2020\/06\/image1-3-300x79.jpg 300w, https:\/\/adespresso.com\/wp-content\/uploads\/2020\/06\/image1-3-1024x269.jpg 1024w\" sizes=\"(max-width: 1199px) 100vw, 1199px\" \/>From here, click the \u201cDiscover new keywords\u201d button:<\/p>\n<p><img decoding=\"async\" class=\"alignnone wp-image-70543 size-full\" src=\"https:\/\/adespresso.com\/wp-content\/uploads\/2020\/06\/image3-1.jpg\" alt=\"Google Ads discover new keywords\" width=\"1237\" height=\"371\" srcset=\"https:\/\/adespresso.com\/wp-content\/uploads\/2020\/06\/image3-1.jpg 1237w, https:\/\/adespresso.com\/wp-content\/uploads\/2020\/06\/image3-1-300x90.jpg 300w, https:\/\/adespresso.com\/wp-content\/uploads\/2020\/06\/image3-1-1024x307.jpg 1024w\" sizes=\"(max-width: 1237px) 100vw, 1237px\" \/>Now, you can enter your general industry or more specific service keyword, for example, flower delivery.<\/p>\n<p>You can also enter your homepage or a landing page (if you have one) to help get keyword ideas based on your site:<\/p>\n<p><img decoding=\"async\" class=\"alignnone wp-image-70538 size-full\" src=\"https:\/\/adespresso.com\/wp-content\/uploads\/2020\/06\/image12-2.jpg\" alt=\"Google Ads discover new keywords search\" width=\"1028\" height=\"475\" srcset=\"https:\/\/adespresso.com\/wp-content\/uploads\/2020\/06\/image12-2.jpg 1028w, https:\/\/adespresso.com\/wp-content\/uploads\/2020\/06\/image12-2-300x139.jpg 300w, https:\/\/adespresso.com\/wp-content\/uploads\/2020\/06\/image12-2-1024x473.jpg 1024w\" sizes=\"(max-width: 1028px) 100vw, 1028px\" \/><br \/>\nMake sure that the language and location of your search are relevant.<\/p>\n<p>If you have a delivery service, you should set the location to your local city, state, or delivery area. For example, we could set it to New York City.<\/p>\n<p>The results will show you the average monthly search volume, as well as the top of page bids.<\/p>\n<p><img decoding=\"async\" class=\"alignnone wp-image-70540 size-full\" src=\"https:\/\/adespresso.com\/wp-content\/uploads\/2020\/06\/image4-4.jpg\" alt=\"Google Ads keyword planner search results flower delivery\" width=\"1579\" height=\"828\" srcset=\"https:\/\/adespresso.com\/wp-content\/uploads\/2020\/06\/image4-4.jpg 1579w, https:\/\/adespresso.com\/wp-content\/uploads\/2020\/06\/image4-4-300x157.jpg 300w, https:\/\/adespresso.com\/wp-content\/uploads\/2020\/06\/image4-4-1024x537.jpg 1024w, https:\/\/adespresso.com\/wp-content\/uploads\/2020\/06\/image4-4-1536x805.jpg 1536w\" sizes=\"(max-width: 1579px) 100vw, 1579px\" \/>If you use your homepage to filter, you\u2019ll get a list of targeted keywords for services that you offer.<\/p>\n<p>You can view historical monthly search volumes by hovering over the graph next to the average volume number.<\/p>\n<p><img decoding=\"async\" class=\"alignnone wp-image-70534 size-full\" src=\"https:\/\/adespresso.com\/wp-content\/uploads\/2020\/06\/image13-2.jpg\" alt=\"Google Ads Keyword Planner monthly searches\" width=\"1149\" height=\"419\" srcset=\"https:\/\/adespresso.com\/wp-content\/uploads\/2020\/06\/image13-2.jpg 1149w, https:\/\/adespresso.com\/wp-content\/uploads\/2020\/06\/image13-2-300x109.jpg 300w, https:\/\/adespresso.com\/wp-content\/uploads\/2020\/06\/image13-2-1024x373.jpg 1024w\" sizes=\"(max-width: 1149px) 100vw, 1149px\" \/><br \/>\nOnce you have this data at your fingertips, it\u2019s time to choose a few keywords that are relevant to your business.<\/p>\n<p>Simply check the box next to the keywords, and click the \u201cAdd keywords\u201d button. (By default, the option is set to \u201cAdd to plan\u201d).<\/p>\n<p><img decoding=\"async\" class=\"alignnone wp-image-70537 size-full\" src=\"https:\/\/adespresso.com\/wp-content\/uploads\/2020\/06\/image9-3.jpg\" alt=\"Google Ads Keyword Plan - add keywords\" width=\"1132\" height=\"633\" srcset=\"https:\/\/adespresso.com\/wp-content\/uploads\/2020\/06\/image9-3.jpg 1132w, https:\/\/adespresso.com\/wp-content\/uploads\/2020\/06\/image9-3-300x168.jpg 300w, https:\/\/adespresso.com\/wp-content\/uploads\/2020\/06\/image9-3-1024x573.jpg 1024w\" sizes=\"(max-width: 1132px) 100vw, 1132px\" \/><br \/>\nOnce you\u2019ve added the keywords, you can immediately forecast the costs of your campaign by clicking the \u201cPlan overview\u201d link in the sidebar.<\/p>\n<p><img decoding=\"async\" class=\"alignnone wp-image-70536 size-full\" src=\"https:\/\/adespresso.com\/wp-content\/uploads\/2020\/06\/image8-2.jpg\" alt=\"Google Ads Keyword Plan Forecast\" width=\"1861\" height=\"856\" srcset=\"https:\/\/adespresso.com\/wp-content\/uploads\/2020\/06\/image8-2.jpg 1861w, https:\/\/adespresso.com\/wp-content\/uploads\/2020\/06\/image8-2-300x138.jpg 300w, https:\/\/adespresso.com\/wp-content\/uploads\/2020\/06\/image8-2-1024x471.jpg 1024w, https:\/\/adespresso.com\/wp-content\/uploads\/2020\/06\/image8-2-1536x707.jpg 1536w\" sizes=\"(max-width: 1861px) 100vw, 1861px\" \/><br \/>\n<b>The forecasting tool is almost like a Google Ads cost calculator.<\/b><\/p>\n<p>Google predicts that for a campaign targeting the five keywords selected above in NYC, the average cost per click would be $3.18.<\/p>\n<p>You can take the total cost and conversions with a grain of salt since it doesn\u2019t consider budget limitations.<\/p>\n<p>If you set up this ad campaign in the whole NYC area with no budget limit, you\u2019d spend roughly $21,000 for 390 conversions.<\/p>\n<p>That\u2019s not the cost of a single Google ad, but a theoretical unlimited campaign.<\/p>\n<p>Of course, you have a budget to consider, and will (and should) start much smaller than that.<\/p>\n<p>You also want to leverage some of that budget towards remarketing ads, and other platforms and not just spend it all on a single search ad.<\/p>\n<p>We\u2019ll help you with this in the next section.<\/p>\n<h2><b>How To Audit Your Google Ads Budget<\/b><\/h2>\n<p>You can\u2019t create money out of thin air, unfortunately, so it can be tough to find money to spend on Google Ads.<\/p>\n<p>And if you aren\u2019t looking to reinvest money into your business or take money from your bank account to do it, it\u2019s got to come from somewhere.<\/p>\n<p>Hopefully, not one of those \u201cI need cash now\u201d commercials, though. Please don\u2019t do that. Ever.\u00a0 \ud83d\ude25<\/p>\n<p>In all seriousness, if you don\u2019t have any money left in the budget and can\u2019t afford to take from your bank account, you have one option:<\/p>\n<p>Auditing your existing budget to find any gaps or wasted spend that you can use.<\/p>\n<p>You can do this in a few different ways.<\/p>\n<h3><b>Option 1. Stop investing in underperforming keywords and locations<\/b><\/h3>\n<p>The easiest way to audit a Google Ads campaign is to look at the keywords report and find underperforming keywords.<\/p>\n<p>This will help you spend more money on ads that actually bring in sales.<\/p>\n<p>Just click the \u201cSearch keywords\u201d link in the sidebar, and arrange the result by conversion costs.<\/p>\n<p><img decoding=\"async\" class=\"alignnone wp-image-70542 size-full\" src=\"https:\/\/adespresso.com\/wp-content\/uploads\/2020\/06\/image2-3.jpg\" alt=\"Google Ads Keywords Report\" width=\"1500\" height=\"583\" srcset=\"https:\/\/adespresso.com\/wp-content\/uploads\/2020\/06\/image2-3.jpg 1500w, https:\/\/adespresso.com\/wp-content\/uploads\/2020\/06\/image2-3-300x117.jpg 300w, https:\/\/adespresso.com\/wp-content\/uploads\/2020\/06\/image2-3-1024x398.jpg 1024w\" sizes=\"(max-width: 1500px) 100vw, 1500px\" \/><br \/>\nFrom here, you\u2019ll see a list of the keywords where a single conversion costs the most.<\/p>\n<p>Often, you\u2019ll see competitor brand names high up on this list.<\/p>\n<p>To get a better return from your ad campaign, you should pause these keywords and spend more money on keywords that are bringing a positive return.<\/p>\n<p>If you use broad match keywords, you should also add any bad keyword you find as a negative keyword as well.<\/p>\n<p>You can do the same with locations. Open the \u201cLocations\u201d tab, and head to the \u201cGeographic report\u201d view.<\/p>\n<p>From there, you can select how specific you want the breakdown to be, for example, narrowing down the data by state.<\/p>\n<p><img decoding=\"async\" class=\"alignnone wp-image-70539 size-full\" src=\"https:\/\/adespresso.com\/wp-content\/uploads\/2020\/06\/image7-3.jpg\" alt=\"Google Ads Geographic Report\" width=\"1500\" height=\"638\" srcset=\"https:\/\/adespresso.com\/wp-content\/uploads\/2020\/06\/image7-3.jpg 1500w, https:\/\/adespresso.com\/wp-content\/uploads\/2020\/06\/image7-3-300x128.jpg 300w, https:\/\/adespresso.com\/wp-content\/uploads\/2020\/06\/image7-3-1024x436.jpg 1024w\" sizes=\"(max-width: 1500px) 100vw, 1500px\" \/><br \/>\nYou might identify entire states, cities, or neighborhoods that are proving hard to convert. (A competitor may be located closer, or you might have bad delivery policies for the location.)<\/p>\n<p>Adjusting down your bids for these locations, or removing them from your campaign altogether, can help you spend more where your money makes a difference.<\/p>\n<p>For more guidance, check out our detailed <a href=\"https:\/\/adespresso.com\/blog\/google-ads-audit\/\">7-step Google Ads audit<\/a>.<\/p>\n<p>You can also find additional money from your marketing budget outside of Google Ads.<\/p>\n<h3><b>Option 2. Measure labor costs and adjust from there<\/b><\/h3>\n<p>It\u2019s not always as cut and dry as analyzing a concrete number like sales from the X platform.<\/p>\n<p>Remember: Time is money, too. Your time is the most valuable thing you have.<\/p>\n<p>So if you\u2019re spending ten hours a week on social media campaigns, even cutting back by five hours could free up tons of room in your budget.<\/p>\n<p>To calculate this, you\u2019ve got to take your hourly rate and multiply it by the number of hours you spend on a task.<\/p>\n<h4 style=\"text-align: center;\"><b>Hourly rate * hours spent working on X task = cost of that task in labor<\/b><\/h4>\n<p>Let\u2019s suppose that your hourly rate or salary for services is $50 and that you spend ten hours a week on social media campaigns.<\/p>\n<p>Cutting back five hours would save you $250 in labor every single week.<\/p>\n<p>That\u2019s $1,000 extra each and every month in saved labor costs divided by overhead.<\/p>\n<p>Now you can use that extra time and money to invest in a new platform, like Google Ads.<\/p>\n<h3><b>Option 3. Move budget from one platform to another<\/b><\/h3>\n<p>Another concrete way to generate a budget from thin air is by merely trading one platform for another.<\/p>\n<p>But this isn\u2019t always that easy.<\/p>\n<p>The trick here is to analyze specific conversion data to see which platforms are taking up too much time and money with a low impact on your overall revenue.<\/p>\n<p>For example, are you running email campaigns via software that costs you $99 a month?<\/p>\n<p>What are the conversions like? What results do the campaigns get on average?<\/p>\n<p>The goal here is to figure out where you can trim the fat, where you can eliminate budget wasting efforts that aren\u2019t driving sales.<\/p>\n<p>If you can do that, you can free up room for Google Ads.<\/p>\n<p>To do this, you need to start analyzing your conversion data.<\/p>\n<p>If you have goals set up in <a href=\"https:\/\/analytics.google.com\/\">Google Analytics<\/a>, you can measure goal completions and costs:<\/p>\n<p><img decoding=\"async\" class=\"alignnone wp-image-70531 size-full\" src=\"https:\/\/adespresso.com\/wp-content\/uploads\/2020\/06\/image10.png\" alt=\"Google Analytics conversions\" width=\"1024\" height=\"473\" srcset=\"https:\/\/adespresso.com\/wp-content\/uploads\/2020\/06\/image10.png 1024w, https:\/\/adespresso.com\/wp-content\/uploads\/2020\/06\/image10-300x139.png 300w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><br \/>\nIf you don\u2019t have goal values set up, you can still calculate your costs by using an average lead value:<\/p>\n<h4 style=\"text-align: center;\"><b>Total revenue generated by closed leads \/ total number of closed leads<\/b><\/h4>\n<p>Using this, you can analyze how much value a given platform is generating for your business.<\/p>\n<p>Is Pinterest generating three leads per month? Multiply it by your average lead value.<\/p>\n<p>Now analyze how much money you\u2019re spending on direct spend and labor on that platform.<\/p>\n<p>Is the labor and direct spend more than the average lead value or total monthly revenue from those leads?<\/p>\n<p>Dump the platform and use that money on Google Ads.<\/p>\n<h3><b>Option 4. Audit your SaaS tool costs<\/b><\/h3>\n<p>The last option is to conduct a quick audit of your existing overhead costs in the form of tools.<\/p>\n<p>Most marketers will have a diverse toolset that they use: keyword research tools, monitoring tools, social scheduling, and more. There literally is a SaaS tool for everything.<\/p>\n<p>For example, I use dozens of tools every month that cost money: <a href=\"https:\/\/evernote.com\/\" style=\"font-size: calc(var(--rem) * 1px * 1.0625); letter-spacing: 0px;\">Evernote<\/a><span style=\"font-size: calc(var(--rem) * 1px * 1.0625); letter-spacing: 0px;\"> premium, <\/span><a href=\"https:\/\/mailshake.com\/\" style=\"font-size: calc(var(--rem) * 1px * 1.0625); letter-spacing: 0px;\">Mailshake<\/a><span style=\"font-size: calc(var(--rem) * 1px * 1.0625); letter-spacing: 0px;\">, <\/span><a href=\"https:\/\/slack.com\/\" style=\"font-size: calc(var(--rem) * 1px * 1.0625); letter-spacing: 0px;\">Slack<\/a><span style=\"font-size: calc(var(--rem) * 1px * 1.0625); letter-spacing: 0px;\"> premium, <\/span><a href=\"https:\/\/moz.com\/\" style=\"font-size: calc(var(--rem) * 1px * 1.0625); letter-spacing: 0px;\">Moz<\/a><span style=\"font-size: calc(var(--rem) * 1px * 1.0625); letter-spacing: 0px;\">, and more.<\/span><\/p>\n<p>Now, if I needed room in my budget, I could probably cut a tool like Evernote out just because it\u2019s not essential to my business. I can take notes for free on it. I\u2019ll only lose some functionality. But if that means getting to spend an extra $50 on Google Ads, it could be worth it.<\/p>\n<p>Take a minute to analyze how much these tools cost and what your monthly bills look like.<\/p>\n<p>Try eliminating non-essential tools or ones that aren\u2019t helping you convert users into customers and use that extra room to form a Google Ads budget.<\/p>\n<h2><b>Start Small And Double Down If It Works<\/b><\/h2>\n<p>Earlier in this post, I gave you an example of how much it would cost me monthly for a sample campaign.<\/p>\n<p>The forecast suggested a whopping $21,000 per month.<\/p>\n<p>That\u2019s not how you want to start your first campaign.<\/p>\n<p>Instead, you can target the same keywords, but limit your budget, and bid low, since your budget is limited anyway.<\/p>\n<p>By focusing on highly relevant ads and landing pages, you can drive sales and results even with only a few hundred dollars a month as your budget.<\/p>\n<p>Contrary to popular belief, you don\u2019t need a monster-sized budget to advertise on Google Ads.<\/p>\n<p>Starting small is better in most cases, as it keeps CPCs and CPAs low, and is a lot less risky.<\/p>\n<p>If you\u2019re setting a monthly budget of $21,000 on Google Ads right from the start, you have a ton of risk.<\/p>\n<p>You\u2019re new to the platform, and being a newbie makes it much easier to blow your money without realizing it. But if you\u2019re only investing $2-300, there\u2019s no significant risk to your business.<\/p>\n<p>The key with Google Ads is to start small and adjust your budget from there.<\/p>\n<p>If campaigns are going well, you simply add more money because you\u2019re making more money than you can reinvest.<\/p>\n<p><a href=\"https:\/\/static.googleusercontent.com\/media\/economicimpact.google.com\/en\/\/static\/reports\/2011\/ei-report-2011.pdf\">According to Google<\/a>, doubling your return on investment is the norm for advertisers on their platform.<\/p>\n<p>Make sure you set up <a href=\"https:\/\/adespresso.com\/blog\/track-google-ads-conversion\/\">Google Ads conversion tracking<\/a> from the get-go, so you can always monitor the results of all your campaigns and keywords.<\/p>\n<p>You should also <a href=\"https:\/\/adespresso.com\/?p=52629\">connect Google Ads and Analytics<\/a>, so you have access to all the data.<\/p>\n<p>Direct sales and direct profit into your bank account should be the determining factor for success.<\/p>\n<p>Did your ads generate 15 sales for a cost per sale of $5? If that\u2019s affordable, make it sustainable by doubling down.<\/p>\n<div id=\"attachment_70544\" style=\"width: 510px\" class=\"wp-caption aligncenter\"><img decoding=\"async\" aria-describedby=\"caption-attachment-70544\" class=\"wp-image-70544 size-full\" src=\"https:\/\/adespresso.com\/wp-content\/uploads\/2020\/06\/image11.gif\" alt=\"Make it rain gif\" width=\"500\" height=\"281\" \/><p id=\"caption-attachment-70544\" class=\"wp-caption-text\"><a href=\"https:\/\/giphy.com\/gifs\/parks-and-recreation-tom-haverford-jean-ralphio-oDZNktNDuLHoY\">Source<\/a><\/p><\/div>\n<p>Start small, adjust based on results, and double down if your campaigns are generating affordable and profitable sales.<\/p>\n<h2><b>Conclusion<\/b><\/h2>\n<p>When you want to explore a platform like Google Ads, you can\u2019t do it without money.<\/p>\n<p>But creating room in your business\u2019 budget isn\u2019t always easy or fun.<\/p>\n<p>Thankfully, there are a few quick ways to create a Google Ads budget from scratch.<\/p>\n<p>First, you can start by researching how much your keywords are going to cost.<\/p>\n<p>This gives you an idea of how much money you\u2019ll need to set aside for Google Ads, and somewhat answers the question \u201chow much does Google Ads cost?\u201d<\/p>\n<p>Once you\u2019ve done that, you can conduct a simple, quick audit of your existing budget:<\/p>\n<ul class=\"list-custom\">\n<li>Where is your money currently going?<\/li>\n<li>What platforms?<\/li>\n<li>Are specific tools costing you a fortune without results?<\/li>\n<li>Can you sacrifice one to test Google Ads?<\/li>\n<li>Can you cut out five hours weekly from a task to save yourself labor costs?<\/li>\n<\/ul>\n<p>It\u2019s time to put your money into action.<\/p>\n<p>Start small, and be sure you\u2019re monitoring your campaigns and then doubling down if they work.<\/p>\n<p>That\u2019s all, folks!<\/p>\n<p><em><strong>Now it\u2019s up to you. Try to put all this into practice and let us know your results in the comments below.<\/strong><\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Investing in a PPC platform like Google Ads can have a significant impact on your business. In fact, according to Google, the average advertiser on their platform makes two dollars for every dollar they spend.\u00a0That means the majority of people on the platform are doubling their investment. It all sounds nice in theory, right? But<a class=\"more-link\" href=\"https:\/\/adespresso.com\/blog\/google-ads-cost\/\"> Read More <\/a><\/p>\n","protected":false},"author":22,"featured_media":70660,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[839,734],"tags":[735,842,843,736,748],"level":[3,4],"platform":[841,745],"target-user":[15,17,14,131,16,319],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v18.9 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>How Much Does Google Ads Cost? Here\u2019s How To Calculate It.<\/title>\n<meta name=\"description\" content=\"How much does Google Ads cost? 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