{"id":15435,"date":"2022-12-26T17:54:11","date_gmt":"2022-12-26T06:54:11","guid":{"rendered":"https:\/\/www.josiahroche.co\/?p=15435"},"modified":"2023-06-11T17:33:40","modified_gmt":"2023-06-11T09:33:40","slug":"how-much-do-google-ads-cost","status":"publish","type":"post","link":"https:\/\/www.josiahroche.co\/blog\/how-much-do-google-ads-cost\/","title":{"rendered":"How Much Do Google Ads Cost? 5 Simple Ways To Profitably Pay Less"},"content":{"rendered":"
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As a business owner, you’re always looking for ways to save money. Google Ads is no different. <\/p>\n\n\n\n

There are a variety of ways you can lower your costs and get the most out of your budget.<\/p>\n\n\n\n

And there are many factors to consider when understanding the cost of Google Ads. <\/p>\n\n\n\n

To start, the industry that you operate in will have an impact on your estimated budget<\/a>.<\/p>\n\n\n\n

Certain industries, such as finance (loans), insurance, gambling and alcohol, tend to be more costly than others not considered sensitive by Google.<\/p>\n\n\n\n

Additionally, advertisers in professional services, such as law, accounting and real estate, are prepared to shell out a premium because of the potentially lucrative revenue each individual customer can bring.<\/p>\n\n\n\n

As such, the cost per click (CPC) tends to be higher (sometimes over $50-$100 per click) in these verticals than in other less profitable niches.<\/p>\n\n\n\n

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Another factor of Google Ads cost is seasonality<\/em><\/strong>. <\/p>\n\n\n\n

Certain industries, such as retail and travel, often experience more spikes in ad spend during certain times of the year (e.g. Black Friday or summer holidays).<\/p>\n\n\n\n

Therefore, it’s important to consider these seasonal trends when budgeting your Google Ads campaigns so that you can take advantage of them.<\/p>\n\n\n\n

All that being said, the quality of your Google Ads management<\/a> often has the most impact<\/em><\/strong> on your profitability.<\/p>\n\n\n\n

That’s why it’s always important to consider finding a Google Ads specialist<\/a> that can run your ads for you to squeeze out the most profit.<\/p>\n\n\n\n

How does Google’s daily spending work?<\/strong><\/h2>\n\n\n\n

Google Ads uses a daily budget to determine how much you are willing to spend in total for an ad campaign.<\/p>\n\n\n\n

The way it works is that your daily budget determines the maximum number of clicks or impressions per day that your ads can receive.<\/p>\n\n\n\n

Once your ad campaigns hit this limit, they will stop showing<\/a> until the next day when the budget refreshes.<\/p>\n\n\n\n

This daily budget also helps determine your average total spend each month. <\/p>\n\n\n\n

For example, if you have a daily budget of $30, and you run ads for 30 days in a month, then your estimated monthly spend would be $912 (because Google calculates your average daily budget x 30.4<\/a>).<\/p>\n\n\n\n

However, it’s important to remember that the actual amount spent may differ from the estimate. <\/p>\n\n\n\n

Google will strive to spend as close to your budget as possible, but it may spend more or less depending on the bidding process.<\/p>\n\n\n\n

Originally, Google could spend up to 20% more than your daily average budget in this manner \u2014 until October 2017, when it announced it could spend up to 100% more of, or double, your budget \u2014 if it means more clicks or conversions.<\/p>\n\n\n\n

This concept is called overdelivery<\/a>. <\/p>\n\n\n\n

Don’t worry, though \u2014 in most cases, Google won’t charge you for more than what you’ve set as your monthly limit, and it will automatically provide credit<\/strong> if your overall cost exceeds that amount.<\/p>\n\n\n\n

Of course, there are exceptions to this.<\/p>\n\n\n\n

I’ve experienced this first hand when a client had a maximum budget of $400 for the month, yet they managed to spend $1,000 in a day.<\/p>\n\n\n\n

Thankfully it was automatically credited back to the account. Bear in mind this almost always never happens.<\/p>\n\n\n\n

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Source: <\/sub><\/em>Google<\/em><\/sub><\/a><\/figcaption><\/figure>\n\n\n\n

Now let’s get into those profit-squeezing tips I promised. By following these 5 tips, you’ll be able to pay less for Google Ads while also profiting more and eliminating wasted ad spend.<\/p>\n\n\n\n

1. Use keyword match types wisely<\/strong><\/h2>\n\n\n\n

Keywords are the foundation of every Google Adwords account. To get the most out of your budget, you’ll need to be strategic in using keyword match types.<\/p>\n\n\n\n

As you know, there are four types of keywords on Google Ads:<\/p>\n\n\n\n