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CPM in Marketing: Digital Marketing Basics You Should Know to Grow your Business in 2022
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Google Ads is one of the most popular forms of online advertising, and for a good reason. With over 3 billion searches performed on Google every day, it’s a great way to get your business in front of potential customers.
But, as with any form of advertising, it’s essential to understand the costs involved.
In this article, I’ll explain everything you need to know about how much Google Ads costs and how to ensure you’re getting the most bang for your buck.
Google Ads works by allowing businesses to create ads that appear at the top of search results when someone performs a search that is relevant to their business. These sponsored ads differ from the organic search results that appear further down the page.
When someone clicks on your ad, you pay Google a fee.
It is called pay-per-click (PPC) advertising, and it’s the most common pricing model for Google Ads. You can also pay for your ad to be displayed several times, called cost-per-impression (CPM) advertising.
The cost of your ad will depend on several factors, including the keywords you’re targeting, the competition for those keywords, and the quality of your ad. I’ll go into more detail about these factors later in the next section.
Several factors can affect the cost of your Google Ads. Some of the most important include:
The cost of Google Ads can vary greatly depending on several factors, as mentioned above.
The most common pricing model for Google Ads is pay-per-click (PPC) advertising, where you pay a fee each time, someone clicks on your ad.
However, you can also pay for your ad to be displayed several times, called cost-per-impression (CPM) advertising.
The average cost per click (CPC) for Google Ads ranges from $2 to $4 for the search network and less than $2 for the display network. However, it’s important to note that costs can vary greatly depending on the industry, location, and competition. To get an estimate of the costs for your specific campaign, you can use the Google Ads Keyword Planner tool.
Quality Score is a metric that Google uses to determine the quality of your ad. It considers factors like the relevance of your ad to the keywords you’re targeting, the relevance of your landing page, and the performance of your ad.
The higher your Quality Score, the less you’ll pay per click. It is because Google rewards high-quality ads with lower costs. So, to lower your costs, you need to focus on improving your Quality Score.
When it comes to bidding strategies, you have a few options. The two most popular bid strategies are manual bidding and automatic bidding.
By setting your bid for each keyword, manual bidding gives you more control over costs. It can be a good option if you have a specific budget and want to ensure you stay within it.
Automatic bidding, on the other hand, allows Google to set your bids for you. It can be a good option if you need to figure out how much to bid on each keyword or if you want to spend less time managing your bids.
Now that you understand the factors that affect the cost of your Google Ads, you may be wondering how to lower your costs. Here are a few tips to help you do just that:
Google Ads can be a great way to reach new customers, but it’s essential to understand the costs involved. By understanding the factors that affect the cost of your ads and using the tips outlined in this article, you can make sure you’re getting the most bang for your buck.
But if you’re still uncertain about all this, don’t stress! Contact us, and we’ll help you navigate the world of Google Ads and get your business in front of the right people at the right price.
Up until working with Casey, we had only had poor to mediocre experiences outsourcing work to agencies. Casey & the team at CJ&CO are the exception to the rule.
Communication was beyond great, his understanding of our vision was phenomenal, and instead of needing babysitting like the other agencies we worked with, he was not only completely dependable but also gave us sound suggestions on how to get better results, at the risk of us not needing him for the initial job we requested (absolute gem).
This has truly been the first time we worked with someone outside of our business that quickly grasped our vision, and that I could completely forget about and would still deliver above expectations.
I honestly can’t wait to work in many more projects together!
Disclaimer
*The information this blog provides is for general informational purposes only and is not intended as financial or professional advice. The information may not reflect current developments and may be changed or updated without notice. Any opinions expressed on this blog are the author’s own and do not necessarily reflect the views of the author’s employer or any other organization. You should not act or rely on any information contained in this blog without first seeking the advice of a professional. No representation or warranty, express or implied, is made as to the accuracy or completeness of the information contained in this blog. The author and affiliated parties assume no liability for any errors or omissions.