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How Much Do Google Ads Cost & 7 Ways to Lower It | Adwords

How Much Do Google Ads Cost & 7 Ways to Lower It | Adwords

Mike Mancini here with PPCvideotraining.com
and today we are answering the question, how much do Google ads cost? All right let’s get to it. Now we have a number of factors that determine
how much your Google ads cost and I’m going to go into each one of those in depth but
stay tuned until the end. I’ve got a couple of extra steps that are
very important that you don’t want to miss out on and also a way that you can get a rundown
on exactly what we talked about and compare it to what you have going on in your campaigns. When it comes to figuring out how much Google
ads cost there are a number of factors. With that said, there is a point when Google
ads are essentially free. Here we are on Google right now and let’s
just say I want to look for a plumber. Go with the old trusty plumber search. As you can see, all of these ads right here
that are identified by the green ad box as well as these up here at the top, because
they’re got the sponsored logo on them, all of these videos, right now, are free because
nobody is clicking on them. This is a pay per click option, but just having
your ad right here is free right now until somebody clicks on it. So, if you’re a service business and you’re
thinking, “Well that’s great, I’ll just put my phone number in my ad. People will call it and I won’t get charged,”
that used to be the case. A lot of people did that, but now when you
see a phone number like this in the ad, that is a Google tracking number, meaning if somebody
calls this, Google measures that as a click and you will be charged. But as of right now, all of these ads are
free until somebody clicks on them. If somebody does click on your ad, there are
a number of factors that go into that cost and it’s not always determined by Google. Number one would be the industry that you’re
in. It’s obviously going to be much more expensive
to advertise, let’s say a industry like real estate or automobile sales than it would be
if you were selling apparel or shoes. Number two, where are you advertising? Are you advertising in a small rural area
or are you advertising in a metro area with millions of people who could potentially see
your ads? Because that will affect your cost and one
of the biggest reasons for that is because of competition. Where there are more people, there’s always
going to be more competition unless you have a monopoly on the market, which these days
that really just doesn’t happen too often. Number three, are your ads relevant? When you go into building your ads and writing
them out, are they relevant to what you’re trying to sell? I want to give you a really easy way to understand
this. If you are an auto dealer and you are advertising,
or you are trying to sell blue trucks, but in your ad all you talk about are cars, red
cars, yellow cars, everything but blue trucks, Google knows this. They see where you’re sending your traffic
and if they check it out and there are no blue trucks on your website or for sale on
your website, your ad is not reflecting what you are trying to sell. So, if they’re clicking on an ad about blue
trucks and they get to a website that only has red cars, Google is going to increase
your cost per click and they’re going to do this because you’re not relevant. You’re not being honest about what you’re
trying to sell and to be honest, they’ll take your money if you want to give it to them. So what they’re essentially doing is they’re
upping your cost per click saying you know what, this ad is not relevant to what you’re
trying to sell and we’re just going to raise your cost per click and if you want to pay
us, great, that’s fine. But if you don’t, you either need to change
what the ad says or change where you’re taking those visitors to. And believe me when I say they will keep raising
that up. We’ve seen instances where people are paying
$10 or $15 a click, where other clicks they’re paying a dollar. So what you’re talking about in your ads is
obviously extremely important when it comes to deciding how much Google ads cost. Number four, in determining how much Google
ads cost, and we touched a little bit on this in the previous steps, but talking about are
your landing pages relevant? So once again in our ads if we’re talking
about blue cars, but on the landing page it’s talking about red trucks, there is a discrepancy
there. Google sees this when they search your website
when they’re scanning your ads. If those two don’t match up, they’re going
to drive your cost per click up and your ads are going to be more expensive. Number five, are people actually taking action? If people are not clicking your ad, if they’re
seeing your ad and not clicking on it, Google is measuring this. If they do click your ad and get to your landing
page or your website and people are not taking action there, Google is measuring this. It’s extremely important when you’re setting
up your campaigns, what are you trying to do? Are you trying to get lead generation? Are you trying to make online sales? What are you trying to do? Because depending on how you set your campaign
up, it’s going to be completely different if you’re just trying to get eyeballs on your
website to read an article or to see some updated statistics where people are not necessarily
taking an action, but they are just spending time reading. But if you are looking for lead generation
or sales, you want to make sure that you have your campaign set up the right way so Google
starts to measure those. Let’s say you are doing a lead generation
or sales campaign, if people are not following your offer, if they’re not calling, if they’re
not filling out forms, if they’re not making purchases, Google is measuring all of this
and the reason that they’re measuring is they want people to find what they’re looking for. And I get into this discussion with people
a lot and when I say that, they’re like, “No, they’re not. Google just wants to make all the money that
they can.” The whole idea behind the search engine and
them charging for ads is to show people what they want and if you use Google as a search
engine and every time you go to Google you don’t find what you’re looking for, you’re
not going to go back there and they realized that. I remember I used to do searches going five,
six, seven pages deep on Google and now I pretty much find anything I’m looking for
right away on the first page. That’s because they have it designed to show
you what you want to find. They are giving you what you’re looking for
and they want their ads to do the same thing. So, if people are clicking on your ads, getting
to your landing page of your website and not taking that action that your campaign is designed
for, Google is going to notice that and they’re probably going to raise up your cost per click. All right. Now I’m going to give you two more things
that are very important. I left these to the end because these are
ones you cannot overlook, but they throw a lot of people for a loop as well. Number six, competition. Now, I know we already talked about location,
but one thing you must understand with competition is just because there is a lot of competition
out there does not mean that you are going to have to pay a huge price. And just because there is a lot of people
out there advertising does not mean you have to outbid everyone. One of the greatest things about Google ads
is they will reward you for doing your job correctly when it comes to advertising your
product or service. So if you are getting a lot of clicks on a
keyword, people are seeing your ads, your ads are relevant and they’re clicking on them,
they are then taken to the landing page or your website and people are taking action,
Google’s measuring all of this and if they see a lot of people start to do that, they
are going to decrease your cost per click. Now a lot of people find that hard to believe,
but anybody that’s run a campaign for quite some time can actually show you results that
stand out and you’re just like, “Wow.” So there are a lot of instances where it can
be in a large metro area and there’s a lot of competition, but you can be outranking
some of those really, really big companies who have huge budgets and you can be doing
it because you are giving the people who are looking at the ads and clicking them, you’re
giving them what they’re looking for. This happens a ton. I can’t tell you how often our clients are
coming up above huge competitors, but it’s because our ads are put together the right
way and the experience is setup for the end user to get what they’re looking for. That cannot be stated enough. Give them what they’re looking for. Not Google, but the end user. If they follow all the steps and take the
correct path and get to where they want to be, Google will reward you for that by bringing
down your cost. And the last thing, and one of the biggest
ones, Google will try and scare you off if it’s a competitive industry or if you are
not basically following all the previous steps that we have touched on. So, a lot of people will see this in a campaign
and you can see right here, it says max cost per click of $3.50, but it says below the
first page bid of $6.67. Well, that’s almost double what I have our
max cost per click bid at. Here’s where it gets interesting. Just because you up your bid to let’s just
say $7 to make sure it gets on the first page does not mean that you will be paying $7 a
click for those keywords, and that’s where it throws a lot of people. They will automatically see that, “$6.67 cents,
no way. I’m not going to use that.” If it’s a good keyword for you, if it performs
well for you and people take all of those actions and get to those end steps, there’s
a good chance that Google is not going to charge you that $7 a click. Some instances are, I have clients where there
literally is around $7 a click. Google says, “Hey, you need to change your
max cost per click.” What they’re doing is it’s an area with a
lot of competition and they’re essentially saying, “There’s a lot of people in this area
who are trying to get these keywords. We can’t show all of the ads. This is the bidding process. Are you willing to bid up to $7?” We say, “Yes,” but when we see our ads, our
ads are always in the number one or two position and we’re paying $2.40 a click. This is a way for Google to weed out those
people to make sure that they’re serious about it. If you’re not serious or if your ads and everything
don’t line up, they’re going to say, “You know what? That’s fine. If you want to bid it, but we’re going to
charge you essentially $7 a click.” So, if you’ve done everything correctly, you
will not be paying that price. Now, with all of these steps said, there are
keywords that do get out of hand and that are very expensive. This is wordstream.com, a great PBC resource
and they always release this report that talk about the 20 most expensive keywords in Google
AdWords advertising. And if you go down here, I’m just going to
skip the graph, you can see insurance is up to $54.91 cost per click. Loans, mortgage, attorneys. Now, if you’re an attorney and you’re seeing
this, $47 a click I can’t afford that. One thing you need to keep in mind is everything
that we just went over. I personally work with some attorneys and
in large metro areas and the clicks, cost per clicks have never seen $47. In fact, they’ve never seen half that. So this is just an average. A lot of these are just an average in the
industry. The problem is a lot of people in the industries
are in these industries where they can afford $47 a click, such as a large law firm, however
they maybe don’t have somebody running their ads the correct way or testing or improving
them or all of those other things. You need to keep that in mind when you see
these numbers that come off these reports. So, I know that’s not an exact answer to the
question of how much Google ads cost, but as I talked about before there’s a number
of factors that go into that calculation. To recap and kind of help you figure out where
your cost per click could be increased I created a worksheet that you could take and go through
your campaigns with it and just try and make sure that your ads are relevant, the locations,
everything is on that checklist. And this will help you get you on the right
path and making sure that your cost per click is as low as you can get
it. So you can download that worksheet for free. There’s a link right in the comments below
and by the way, let us know in the comments below what’s the most you’ve paid for cost
per click, and what industry? So if it’s automobile industry say autos $15. Say plumbing services, $25. Whatever it might be, it gives everybody a
good idea of just the huge discrepancies that we see, but a lot of the times when people
see these numbers they freak out. We just want to basically put some of those
numbers out there to help say, “You know what, there are other industries where people are
paying … Maybe this person in the plumbing industry is paying $25, but this other person
is paying $3.” All right. So put in some of those in there below. Put your most expensive one and your cheapest
one. That will definitely give a good range and
let people know that it’s really, really hard to be exact when it comes to determining the
cost of Google ads. But if you do it correctly, you’ll obviously
see the huge benefits of that. So let us know those in the comments below. Thanks so much for watching. If you liked the video, please like and subscribe
to our channel as we do come out with new videos every week and share it with someone
else who might find it interesting. Or if you or someone else you know needs help
with Google ad services, please let us know. We’d be very interested and would love to
help. Thanks so much for watching.

5 thoughts on “How Much Do Google Ads Cost & 7 Ways to Lower It | Adwords

  1. What's the most you've paid for a click and what industry are you in? Let us know in the comments below. No judgements here please (or they will be removed). This is to give others an idea of the different costs out there.

  2. Hey Thanks for this lesson, I live in a small town and trying to start getting small business's to let me manage their ad campaigns, I am also going to pitch them for making their website because most business's do not even have a website because they do not know how to create one. My main question is do I setup an ad campaign under their billing information, or do I accept responsibility for the payments to google and just take it out of my earnings for helping them?

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