Google Ads is a Google advertising platform that allows advertisers to display concise advertisements, videos, product listings or service offerings to users. Web users can find these Google PPC ads on search engines, non-search sites, videos and mobile apps.
Advertisers do not pay the cost of Google AdWords when the Google PPC ad is displayed. They only start paying the Google AdWords cost when users click the ad to contact the company or to be routed to the company’s landing page.
It is important to note that several variables affect the cost of Google AdWords campaigns. In that sense, there is no fixed amount to answer the question “How much does a Google ad cost?”
The Google AdWords platform allows marketers to curate their Google pay per click ads, select keywords to bid on and decide on their Google PPC budget.
Because you are allowed to decide how much you’re willing to spend per click and when to spend money on your Google pay per click ads, there is no one-size-fits-all answer to “How much do Google Ads cost?”
Another factor that influences the cost of a Google ad is the Google Ads auction among you and your competitors. Understanding how this works helps answer the question, “How much does a Google ad cost?” It also helps you design an effective Google Ads pay per click strategy that fits your budget.
What is Google AdWords Auction?
Google Ads auction determines your Google PPC ad placement and the cost for your selected keywords. You need to have an overview of the process to understand the cost of Google ads better. When a user performs a search query, Google checks if this query has keywords that Google Ads advertisers are bidding on. If so, an auction among eligible ads takes place.
In the auction, advertisers’ ad ranks determine the placement of their ads and the Google Ads cost per click. The ad rank of your advertisement is contingent on your ad quality and maximum bid for that keyword. This is the ad rank formula:
Ad Rank = (Ad maximum CPC bid) x (Ad quality score)
Google Ads cost per click is computed this way:
(Ad Rank of the ad below yours) / (Ad quality score) + $0.01
While certain variables, such as your competitors’ bid and their ads, are outside of your control, you can work on your maximum Google PPC ads cost-per-click and ad quality. By keeping an exemplary ad quality score, you can spend less on Google Ads cost yet still get a higher ad position. This is a good way of keeping your cost of Google Ads within your desired budget.