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How Much Do Google Ads Cost in 2021?

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How Much Do Google Ads Cost in 2021?

2021 has only just begun, but odds are that you’ve conducted countless Google searches to help guide you through this new year. But what if your business could be featured on this incredible platform? Many brands falsely assume that they cannot afford to advertise on Google due to the sheer popularity of the platform, but that’s definitely not the case. In fact, Google features an accessible bidding model that makes it possible and beneficial for small or midsize brands to utilize this platform to reach new customers and grow their businesses. 

What You Should Know About the Cost of Google Ads

In an ideal world, we would be able to give you the exact cost of advertising on Google. Unfortunately, that’s not really how it works. You see, Google uses a bidding model where you essentially bid against competitors on keywords that are relevant to your business. Whoever wins the bidding will end up at the top of the search results list. While that may sound rather simple in theory, it’s a bit more complicated in practice due to the exact setup of Google’s bidding system. 

This system combines your bid amount with something called your “Quality Score,” or QC, to obtain your ad rank. Your QC is based on a variety of different factors such as your click-through-rate (CTR), keyword relevance, landing page quality, landing page relevance, ad text relevance, and historical account performance. This score is given on a scale of one to ten. 

Your QC score is multiplied by your maximum ad bid, which is totally up to you. Google only charges per click rather than per impression, so you can rest assured that you’re going to see at least some kind of return on your investment. The resulting number is known as your “Ad Rank.” Whoever has the highest ad rank will earn the top advertising spot for that keyword. 

We know what you’re thinking…this is an awfully complicated and convoluted system that seems to benefit large companies that can afford to dish out tons of money on Google advertising. However, that’s not necessarily the case. By combining ad bid with QC score, you’re able to better compete with players that may be able to bid more than you but have weaker QC scores. As a result, it’s extremely important to focus on building up your QC score to win bids without having to pay a ton of money in the process. 

Overall, you should know that the average cost per click (CPC) on Google is between $1 and $2, although this number will largely relate to the keywords you’re bidding on and how much competition you’re dealing with. Google Ads allows you to set a daily budget or an overall campaign budget based on your financial capabilities. That being said, small and mid-size businesses spend an average of $10,000 a month on Google Ads. 

Why Should You Advertise on Google? Is It Worth It?

We understand that it’s hard to commit to advertising on a platform without a clear understanding of the exact costs and benefits involved. While it’s challenging to discuss the costs without detailed information about your industry and brand, we can still dive into the benefits of advertising on Google and why it’s worth it. 

  • Enormous reach: As you probably know, Google is a huge platform. But do you really know how huge? It’s almost hard to comprehend. Google conducts an average of five billion searches per day or two trillion searches per year. Google effectively monopolizes the search game by conducting over 90% of all internet searches. 
  • Actual intent: When people use Google, they are searching for something specific — something that your brand can offer them! On social media platforms like Facebook and Instagram, people aren’t actively searching for things, they’re just scrolling through their friends. As a result, Google offers a huge return on investment (ROI) that averages $8 for every $1 spent on advertising since people are actively looking for solutions to their problems. 
  • Effective targeting: Google obtains a whole host of data on its users through their search histories and activity on other Google platforms. When you use Google advertising, you gain access to this information to reach people who are more likely to buy your products. Google advertising allows you to target people based on things like demographics, life events, affinity groups, behavior, and more. 
  • Insightful data: But Google doesn’t just gather data about its users, it also gathers data about your campaign. You can then use these insights to your advantage to tweak your current campaign and build your future campaigns. Google tracks valuable metrics, including things like clicks, impressions, budget spend, customer behavior, and more. 

What Are the Different Ways to Advertise on Google?

Google is an expansive platform that offers many different ways to advertise. Here are a few different campaign types that you may want to consider using for your business:

  • Search campaigns: This type of campaign allows your brand to show up when people are searching for related products or services. This type of campaign can help drive sales, leads, and website traffic. 
  • Display campaigns: This type of campaign allows your brand to use image ads when people are searching through millions of different websites and apps. This type of campaign isn’t on Google’s home platform, but instead takes place all across the web. 
  • Video campaigns: This type of campaign allows your brand to use video ads when people are searching through videos on YouTube. Yes, Google owns YouTube and you can use both of these platforms together when you advertise on Google Ads. 
  • Shopping campaigns: This type of campaign allows your brand to advertise actual products and prices within Google’s search results in the Shopping tab. 
  • Local campaigns: This type of campaign allows your brand to target people based on geographical location to bring people into your physical stores. Local campaigns incorporate Search, Display, Maps, and YouTube features. 

How to Maximize your Google Ads Return on Investment

If you want to obtain that incredible 8:1 ROI mentioned earlier, then you need to do Google Ads right. Here are some tips and tricks that you can use to maximize your Google Ads ROI:

  • Know your keywords: Keywords are everything on Google, so make sure you’re using them correctly by investing in proven keywords for your industry and brand. 
  • Improve your QC score: We talked about QC scores earlier, but this is key to maximizing your ROI so it’s worth mentioning again. Focus on your relevance, ad copy, call to action, and user experience. 
  • Embrace remarketing: Remarketing is one of Google’s best targeting capabilities, so use it! Follow up with people after clicking on your content or viewing your website to increase the likelihood they’ll end up making a purchase. 
  • Test before launching: There’s nothing worse than spending money on content that’s simply not effective. You can avoid this issue by testing your content before launching. 
  • Utilize negative keywords: Keywords are great for including relevant information, but did you know they can also be used to exclude irrelevant information? Negative keywords can block out irrelevant results that could end up costing you money with no actual ROI. 

What Can a Google Ads Agency Do for You?

If you’re really looking to maximize your ROI with Google Ads, then you should definitely consider working with a Google Ads agency. MuteSix helps clients advertise successfully on Google thanks to a complete full-funnel strategy that goes beyond just search to take advantage of everything Google has to offer. 

MuteSix spent more than $83 million on Google Ads in 2020, so we definitely know the process. Not only that, but we also get results. 82% of our clients have doubled their revenue in the first year of working with us. Take our client Jacoby & Meyers, for example. We were able to achieve a 55% case increase, a 30% cost per case decrease, and open six new target locations. 

Our Google Ads process is as follows: Audit and analysis; display and video recommendations and development; product feed optimization; campaign restructure; and audience expansion. Do you really want to be stuck doing all that on your own? Probably not. So let us do the hard work for you and get you the best results. 

The Rundown on Google Ads

While it may be difficult to nail down the exact cost of Google Ads, this shouldn’t prevent you from trying it out and launching a campaign. In fact, it’s easy to manage your money on Google Ads through things like maximum bids and campaign budgets. And while Google advertising can definitely get you a great return on investment, this isn’t a given. So if you’re really looking to maximize your money within the world of Google Ads, reach out and set up a consultation with MuteSix to expand your online presence and grow your business. 

Sources:

  1. https://www.business.com/articles/measure-and-improve-marketing-roi/
  2. https://www.forbes.com/sites/theyec/2019/05/31/seven-features-of-google-ads-that-you-should-be-using/?sh=3d70bd282054
  3. https://www.entrepreneur.com/article/201870

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