How Much Does a Google Ad Cost? A 2022 Guide

With SEO being a huge priority to get in front of potential customers, the companies that achieve the most success leverage google advertising. 

According to the U.S. Small Business Administration, small to mid-size businesses should allocate around 7- 8 percent of their revenue to marketing. That includes digital marketing initiatives such as google display ads, and understanding google ad cost is key to using it.

While your company can create various types of google ads securing a budget will make a massive difference in your marketing efforts. If you are interested in learning the best way to budget for google digital ads, take a look at this guide for Google ad marketing in 2022. 

How Much Does a Google Ad Cost?

Diving into the world of google ad cost starts with understanding how Google sets the price. Google Ads cost uses an auction-based system. How this works is the businesses that create the best high-quality ads will have better ad placement and lower costs. 

Companies small to midsize companies can spend around $9k – 10k each month on google ad campaigns. The true cost for an ad comes down to the CPC or cost per click when using google marketing.

What Does a Click Cost With Google Advertising?

On average, Google Adwords cost between $1-2 per click. Yet, it is important to note that some keywords in Adwords can upward by $50 and more per click, which as you can imagine can get expensive. 

As a small business controlling your Google Adwords budget should be a priority and using methods such as geotargeting, scheduling, and device targeting can help improve the cost.

What Factors Determine a Google Ad Cost?

There are a variety of factors that impact the google ad cost. One of the first factors is ad rank. 

Ad Rank is vital because its helps you understand the visibility of your ads to potential customers. The higher your ad ranks the greater the opportunity for brand exposure. Ad rank can also help you improve your clickthrough rate, leading to more sales conversions.

Since click through rates cost the more clicks the more you are going to pay for an ad. The next factor that determines google ad cost is the Quality score. The better quality of ads you produce the higher this score will be. This means you will pay less the higher your ad shows up in results. 

Other factors that influence the google ad cost is your campaign and the ad settings you choose. In your google ads, you can set a budget, bid on keywords, and target a specific audience. Adjusting any of these elements can increase your overall ad spend.

For example, if you are a running an ad with competitive keywords it can cost more because other companies are trying to have their ads rank for the same thing. This is also true if you are in a competitive industry.

Ad costs will increase because more companies may have similar products and services as you that are also running google ads. While each company will spend different amounts based on their campaign goals understanding these influences of a google ad cost can help you plan for the most appropriate budget. 

How to Choose a Google Ad Budget?

Choosing a Google ad budget isn’t difficult and it should be based on your internal goals. If you are new to Google advertising it is recommended to stat out with a low daily budget. Some companies prefer to spend as small as $5-$10 a day while larger enterprise companies are spending thousands a day. 

Keep in mind that having a daily budget that is comfortable for your business will allow you to increase your brand presence to some degree verus not running digital ads. 

The more ads you use, the higher click-thorugh rates you will achieve, which enhances your ad rank and quality score. This will allow you to have a lower cost per click in the future, which can help you increase ROI with google ads. 

If you are just starting, expect your cost per click to be much higher as you establish your brand presence and develop quality ads. Effectively planning out your keywords is essential before launching a google advertising campaign because this will help you create a realistic budget.  

Are Google Ads Still Beneficial in 2022?

Running google ads may seem overwhelming, and you may wonder if it’s even worth it. The short answer is yes. Over 3.5 billion daily users and over 1.2 trillion search queries within a year are performed through Google. Understanding the potential reach that google gives your business makes using it as an advertisement tool critical. 

Each time someone uses the search engine and sees your ad they could decide that your product and service are what they need, which is valuable to growing your business. 

Ready to Start Your Google Advertising Journey?

You must ensure that every advertising dollar counts as a small to mid-size business. Knowing the cost of google display ads will help you effectively plan your marketing budget to get the best results for what you spend. Whether you want to run one ad or a campaign, using google marketing is a must.

So start small if you have to, but don’t wait. Google ads can be the answer for taking your business to new heights. 

If you are looking to dive more into the google ad cost or digital ads, we can help. Take the plunge and reach out to our team today to get started. 

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