What is budget, bid, and spend for Google Ads costs?

If you are familiar with content creation or any digital marketing concept, you surely heard the word Google ads. You already know that Google ads is an online advertising platform that used to promote the certain businesses and brands. But, you ever wonder how much this Google ads cost and what is budget and bid? This is genuine question that is arise in every content creator or digital marketer’s mind. Don’t worry because this blog will provide you all the necessary details about Google ads costs, budget and bid in the descriptive manner.

What is Google Ads or Adwords?

First get familiar with the definition of Google Adwords. Google Adwords is a Google per-pay-click (PPC) platform which promotes various businesses on its platform and helps them to gain visibility.

The search ad which appears on the top of the search engine result page (SERP) is the most common type of Google Ads. These Ads are relevant to the advertisers’ products and services. If you want to know more about Google ads, you can visit our other blog.

Factors determine the cost-per-click of Google Ads

Google Ads are mostly focused on the Keywords. Keywords are words which mostly likely used by the people for searching their products. During Google Ads search campaign, advertisers create ads with special offers and these special offers often uses keywords to target the relevant audience for the offer.

When someone searches on Google (also called query), Google will analyse if any advertiser bid on the keyword relevant to the search, if yes, then the advertisement appears on the SERP.

Ad Ranks, Quality score and Cost-per-click are three key factors behind the working of Google Ads.

# Ad Ranks can be defined as the term created by Google which it used to determine the position of your ad in the SERP. Your ad placement depends on your Ad Rank. More the value, more will be the audience engagement. Ad Rank determined by the max. Bid multiplied by your Quality Score.

Factors on which Ad Rank depends:-

• Higher bidding amount, higher ranking
• Your Quality score
• Matching Contextual information
• Higher CTR (click-through-rate), higher impact
• Effective Ad-extension

According to Google,

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# Quality score determines the quality of the Adwords by measuring your CTR, relevance of Keywords, quality of landing page, past performance on SERP. A Quality score rank your advertisement on the scale of 1-10 on the basis of each Adwords or keyword performance. When someone uses Google for searching, Google check whether any advertisers have bid on the relevant keyword to that query, then the auction triggered and Google display all the relevant ads into that auction.

Key factors of Quality score are as follow:-

• More than expected CTR (click-through-rate), better quality score.
• The relevance of your Adwords and keywords to the search query.

Benefits for high Quality score:-

• Its lowers the cost-per-clicks and help in improving the ROI (return of investment).
• You have a higher exposure on Google, your Ads will display more often and have a better SERP position, and more clicks more conversions without raising bids.

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#Cost-per-click (CPC)

According to Google,

The mathematical equation for determining cost-per-click of the Google Ads:-

According to this formula, you as an advertiser can pay less per click than any other advertiser in the SERP ranking and you will still top the SERP ranking because of your better Quality score.

* Landing page’s relevance and experience, device, location, user’s search intent, substitute bidding methods, alternative ad formats and auction time quality are some additional factors that influence you Google ads per cost along with your Ad-rank, Quality score and CPC.

What is Budget?

Advertisers often set a monthly budget for the Google ads, which get easily over exceed, that make them believe that Google ads are quite expensive, but that some sort of misunderstanding, let’s clear this by getting familiar with terms associated with the Google ads budgeting.

*Budget is the amount an advertiser probably spend on the Google ads.

*Bid is the amount that you will pay for clicking on your ad willingly.

*Spend is the amount that takes out of your budget by Google when an ad     participate in auction.

*Cost is define as the actual amount you pay for the click on your advertisement.

How to set up the daily budget for the ad campaign?

When you start a Google Ads campaign you need to set up a daily budget. Google will the not use the exact same amount of daily budget in every single day. You are giving a rough idea to Google of average amount you want to spend daily by the end of the month. It may lead to spending limits of the given budget.

Google can spend 100% or more, or even double your daily budget because it leads to more clicks and conversions.

This are factors you should remember before determining your daily average budget:-

You can calculate your daily average budget by dividing your monthly ad campaign budget by 30.4. Your monthly budget depends on:

• Your total Google Ads budget
• Ad campaign importance relative to the others in your account.
• Yours bidding average per click cost of the keywords.

What actually Bidding is?

As mentioned above that bidding is the maximum amount you willingly to pay for the click on your ads. Right? For this you should know this few important things.

• You cannot set your bid super low, even though Quality score is high enough to pay less. Your bids must be high, if want to compete.
• You can set one maximum CPC per ad group, if you bid manually but, it allows you to set up different bids in that group for the each keyword.
• In case of enhanced CPC, Google can spend more than max. CPC. You can set max. Bid limits for maximize clicks, tCPA or tROAS and target impression share by automated bidding.  

How much does Google Ads Cost?

Charges or cost of Google Adwords depends upon the type of Advertising. Google Adwords is pay-per-click (PPC) program where you either display your Ads for free or charged by PPC when someone click on your advertisement on the SERP.

Google Adwords is live auction system where click prices are set by the intensity of competition and the willingness to pay for the advertisement. With impressive strategy one can drive high quality traffic towards their website at an affordable cost.

Keywords, CTR, Quality score, maximum bid, bid position and average monthly budget are some prominent factor for a successful Adwords campaign.

Factors that influence the Google ads cost

Some key factors that influence the Google pricing cost are as follow:-

1. For the businesses, Google ads cost depends upon its industry, current consumer trends and customer lifestyle.
2. Google ads relies on the auction system that considers high quality ads with better placement ad lower cost.
3. You can control your Google Ads budget by using techniques such as ad scheduling, device targeting, geo targeting etc.
4. The average CPC is in between $2-$4 on the search network and $1 for the display network.
5. The most expensive in Bing ads and Google ads cost more than $50 CPC.
6. $50 million per year is spend on the paid search in Google ads by the giant retailers.
7. $1000-$10000 per month spend by the average and small and mid-sized businesses on their Google ads campaign.

How to manage your Google Ads Account efficiently?

According to a recent study by Google that shows that the average ROI on Google ads is 800% i.e. you get $8 for every $1 you spent and it all depends on the fact, how well you manage your Google Ads account. If you want to have high returns with low Google ads cost follow this steps:-

• Maintain and update your keyword list daily.
• Audit your account regularly.
• Make a report of your performance.
• Perform data driven optimization.
• Maintain a proper ad account structure.

Expensive Keywords in Google Ads

Table for the some expensive keywords categories in the Google Ads:-

Insurance – $54.91	Conference call – $42.05
Loans – $44.28	Software – $35.29
Attorney – $47.07	Recovery – $42.03
Attorney – $47.07	Transfer – $29.86
Credit – $36.06	Trading – $33.19
Lawyer – $42.51	Gas/Electricity – $54.62
Donate – $42.02	Classes – $35.04
Degree – $40.61	Rehab – $33.59
Hosting – $31.91	Treatment – $37.18
Claim – $45.51	Cord blood – $27.80

Conclusion

That’s concluded our whole topic about Google Ads cost, budget and bid. I hope this provide you clear picture of various term and factors on which cost of  Google ads depends and tips to create an effective budget for your Google ads campaign and the sufficient amount you must bid on your ads to get good returns.

These significant factors influence the success of your Google ad campaign. Google Ads is an active and prominent way to promote your business because with great and practical approach you can easily generate a good revenue in just couple of months. It is great marketing strategy. If you want to learn more about the Google Ads you can join our online course by clicking on this link https://dotnet.courses.store/72882

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