Google Ads are one of the most effective methods for paid advertisement, when used properly, Google Ads can send to your website the right people who want exactly what you have to offer. For eCommerce marketing, the importance of Google Ad is evident, as this is where people search where to buy. Your digital ads can appear on Google exactly when someone is looking for a product you are offering and the purchasing transaction can be yours.
So, “How much does a Google AdWords campaign cost”? Unfortunately, there is no easy answer to this question. The reason is that many different factors contribute to the actual cost of an advertisement campaign. So let’s start, see what it is about, or, what we need to do for AdWords PPC online advertising, and then try to price it.
The general idea is quite simple, you have an online advertising technology company i.e. your eCommerce store and you sell products. This means that you have product pages, probably arranged in product categories, you have a shopping cart or direct purchase links and you would like to direct people searching for your products to the product pages.
Now, Google Ads allows you to advertise search-Ads. In principle, you will need to select search keywords. These are words you are guessing that people type in search terms when they are looking for products, for example, if you are selling shoes, you may guess that people will search for “shoes”, “sneakers”, “dress shoes”, “running shoes” etc… and hope that indeed, people that are looking to buy shoes will see your ads in response to typing these keywords and come to your website or online advertising technology company.
The average cost per click in Google Ads is between $0.4 and $2 on the search network, but it can also be as high as $50 if you are advertising in a lucrative industry. However, the actual price you will pay for an Ad placed in google search results is a result of a sophisticated auction system. The question at hand, “how much does a Google AdWords campaign cost”? does not only depends on how much are you willing to Pay Per Click, it also depends on the quality of your ad campaigns and the relevancy of the sequence Keyword-Ad-Website Landing Page to the visiting user.
Let’s be positive and assume you found out all of the most relevant keywords, your AdWords PPC online advertising ads are super relevant and your Website is arranged perfectly – easy to purchase, your prices are good and your shipping is free, industry measures indicate you can have as much at 5% conversion. Meaning that 5 out of 100 visitors to your website will make a purchase.
So if you estimate the low PPC cost to be $0.5 and the high to reach $2.0 you may estimate a lower and an upper total cost to be between $50 and $200 for every 100 clicks. If indeed you manage to obtain a 5% conversion rate, you may see $10 to $40 as the advertisement cost per acquisition that you will need to spend on Google Advertisement.
Naturally, many factors can influence your results and the statistical nature of our analysis is telling us you will need to bring many people to your website with AdWords management services before your CPA will stabilize. Your next question would probably be then, “How do I reduce my CPA” or, “How do I increase my ROAS”.
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