How much does it cost to advertise on Google
The cost of advertising in Google, if we presented the method of its calculation in the form of an algorithm, would be very difficult to estimate. However, the factors that shape this price are quite obvious, although not intuitively understandable for everyone.
How does the competition in Google work?
Every keyword has a basic price. It is determined by the actions of the competition, which is expressed by the competitiveness factor. Simply put, the more ads that are supposed to refer to a keyword, the higher its asking price (the final price is set automatically by auction – this is a separate topic, but the important thing is that the one who offers the most expensive display does not always win). Competition is measured every time an advertisement is to be displayed, so setting different days or hours of emission can have the desired effect.
Google Advertisements Auction
During the bidding process there are two basic factors: the price for the display and the quality of the advertisement. In practice, very good results are achieved not by conquering the maximum rate, but precisely the quality. It is evaluated on a ten-step scale, where the starting point is the rating of 7. Lower quality makes the advertisement less attractive, thus forcing the bidding with a higher amount, while the quality of 10/10 can reduce the cost of display (and in principle most clicks, because most budgets are accounted for in the CPC model) even by about 30%.
Budget estimation at Google Ads
The campaign budget is a complicated matter and it is practically impossible to calculate it manually. A special forecasting tool is used for this, while what is most important for advertisers is the fact that the campaign does not have a specific lower limit of the budget. Equally well you can start a promotion with a budget of 50 dollars per month, me and 5 thousand dollars. Of course, the thresholds are not the same in every campaign, but it is a very flexible limit – the system does not exceed the planned budgets, adjusting the number of impressions so as not to go beyond the set price ceiling.
Estimates from Google’s planner are not accurate, but practice shows that they are usually inflated in relation to real prices. However, this applies only to a well-planned campaign – each mistake will increase the cost of conducting a promotional campaign, so sometimes involving professionals, even though on paper requires adding another several hundred dollars to the budget, allows for significant savings, which in the case of Google Ads advertising comes primarily from campaign optimization, which without specialized knowledge cannot be done.
Why advertise on Google Ads?
Google’s Advertising Network allows you to reach your target audience with your advertisement. You can, for example, direct your advertisement to Internet users browsing websites with topics related to the content of the advertisement. This is called contextual advertising.
As part of its advertising network, Google works with many websites that display Ads ads. These can be not only text ads, but also banners, video clips. The advertising network, formerly known as the partner network, includes websites with different profiles, checked by Google for compliance with search engine standards.
Appropriate targeting and matching of an advertisement significantly improves its effectiveness. In the case of Search Engines, sponsored links appear for specific keywords entered in the search engine. In the case of the Advertising Network, advertising in various forms is displayed on partner websites (such as news portals, blogs, social networking sites, web forums, video sites such as YouTube, etc.).
Advertisements can be displayed at automated destinations – throughout the network or at (our) selected destinations.
A special advertising placement tool allows you to find places on the web that are visited by our target group. This allows you to increase the effectiveness of your advertisement. There is also a function that allows you to place an advertisement in specific places on the pages (e.g. only above the bend of the page).
Targeted advertising campaigns in the Google Advertising Network increase the possibility of interaction with the target audience. An Internet user can find a company’s advertisement in many places, so the probability of noticing it increases. For example, if you are on an information portal or a video service, you may not be interested in buying anything at a given moment, but by placing a banner we build brand recognition. This type of advertising is designed to attract attention, interest in the brand, and not necessarily immediately lead to a purchase.
The advertising network and the Search Network complement each other, creating a comprehensive Google advertising system.