Expert explains: How much does advertising cost on Google? Sample calculation & analysis

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If you're the boss or decision maker in a small or medium-sized company, you're probably wondering how much Google Ads cost and how much you should spend on Google Ads to get new ones Attract customers.

Google Ads can be a great way to expand your business and reach out to more potential customers.

The Google Ads program allows you to display your ads on both the search network and the display network, which allows high reach.

In this article, we'll show you how to calculate Google Ads costs.

This allows you to make optimal use of your budget to achieve the best result while keeping track of things.

Google Ads is particularly flexible because it allows companies of all sizes to achieve targeted results with a small or large budget.

This means that both start-ups and established companies can benefit from promoting their brand through online advertising to strengthen on Google.

Our goal is to show you how to get the most out of your budget, no matter what it is.

What are Google Ads and how do they work?

Google Ads Is an advertising program from Google with which companies paid advertisements in search results and in advertising network You can switch from Google.

This means that your ad is visible exactly when people search for specific terms that are important to your business.

This targeted approach is very effective because it reaches people who are already interested in your products or services.

Google Ads helps small and medium-sized companies to reach new customers in a targeted manner with a flexible budget and their online presence to improve.

You can set exactly how much you're willing to pay per click and how much you'd like to invest in total.

This keeps your advertising under control and allows you to keep an eye on your costs.

The ads appear in Google search results, but also on other websites that go to Google ad network belong.

When someone on your display click, pay a specific amount that Cost per click (CPC) is called.

This model is used as Pay per click because you only pay when someone is really interested in your ad and clicks on it.

This makes Google Ads a cost-effective way to target potential customers because you only pay for real visitors.

Which factors influence Google Ads costs?

Die Google Ads costs depend on various factors that must be considered in order to achieve the best possible results:

• Keywords: Choosing the right keywords is crucial. High-quality and highly sought after keywords are often more expensive because many companies are bidding on the same terms. This means that demand influences the price. It is therefore important to also so-called Long-tail keywords to use. These more specific keywords are less competitive and often cheaper, which allows you to target your ads in a more targeted and cost-effective way.
• Quality Score: Google rates your displays by relevance, click-through rate (CTR) and the quality of your website. A better quality factor can be Cost per click Lower and the Display position improve. The more relevant your ad is to users' search queries, the better the quality score and the lower the click prices can be.
• Bidding strategies: Your bid determines how much you want to pay for a click. Strategies such as Cost per thousand (CPM) (cost per thousand impressions), Cost per Acquisition (CPA) (cost per conversion won) or CPC influence the budget. A good bidding strategy depends on your goals. For example, if you want more visitors to your website, CPC useful, while in the case of direct customer contact, the CPA is in the foreground.
• contest: The more advertisers On the same Keywords Bid, the higher they go Ads costs. When many companies bid on a popular keyword, this leads to an increase in price. That's why it's important to set yourself apart from the competition by creating targeted and creative ads that give users exactly what they're looking for.
• Ad relevance: Relevant and appealing ads increase the click rate and can your Reduce costs. Google prefers ads that match the search query exactly and offer users real added value. Make sure your ad is exactly what the user is looking for. This increases the likelihood that users will click on it and interact with your offer.

Cost flexibility

Die Google Ads costs are extremely flexible and can vary significantly depending on the search query, industry and keyword.

This means that you have the option to use your Google Ads Budget tailor it exactly to your needs and goals.

The Click price (CPC) can be achieved through targeted optimization of Keywords and displays be significantly reduced.

A professional Google Ads agency can help you identify the right keywords and design your ads to be both cost-effective and effective.

Through continuous adjustments and improvements, you can ensure that your Google Ads costs Stay within limits and get the most out of your budget.

How do we calculate the cost of Google Ads?

Would you rather have a visual explanation? In our video, we show you how to Google Ads costs Be able to calculate step by step: Watch the Google Ads cost calculation video.

To the Google Ads costs To calculate, we recommend using a spreadsheet.

This allows you to precisely plan your Google Ads budget and estimate the possible results.

One spreadsheet helps you keep an eye on the various factors and check the profitability of your campaigns.

Step 1: Set the monthly budget

First, consider how much money you spend each month on Google Ads want to spend.

A small company could with a Budget of 500-1,000 € Start to gain initial experience and see how successful the campaigns are.

Larger companies often invest 5,000€ or more, depending on the target and sector.

The budget should be flexible so that it can be adjusted depending on the success of the campaigns.

Step 2: Determine the average cost per click (CPC)

Die Cost per click (also known as click price) depend on the industry and Keywords differently. Die Cost per click cpc varies by industry and keywords.

With tools such as google Keyword Planner or our help can we find the average CPC And that search volume find out for your keywords.

The CPC varies depending on competition and relevance of keywords.

By using the Google Keyword Planner , you can make an informed decision about which keywords fit your budget.

Step 3: Calculate potential clicks

Share your monthly budget by the average CPCto calculate the number of possible clicks on your ads.

For example, if your budget 1,000€ Is and the average CPC chez 2€ Is lying, can you 500 clicks expect.

This clicks are important to reach as many potential customers as possible and draw attention to your products or services.

Step 4: Evaluation of the conversion rate

Not every click results in a conversion.

Appreciate the Conversion rate a — this is the percentage of users who take a desired action after clicking on your ad, such as a Kauf Do or a Contact request Set.

For example, if you have a 5% conversion rate Have, does that mean that from 100 clicks approximately 5 users perform a desired action.

A high conversion rate shows that your ad and your Landing Page work well.

Step 5: Calculate cost per acquisition (CPA)

Die Cost per acquisition show how much you need to spend to get a new customer. The Conversion value helps you understand how much each acquired customer is worth and how this relates to costs.

Calculate the CPAby dividing the total cost by the number of conversions.

If your monthly budget 5,000€ amounts and you therefore 125 conversions Reach, amount to Cost per conversion****40 €.

The lower the CPA, the more efficiently your campaigns work.

Sample calculation:

Imagine that your monthly budget is 5,000€, the average CPC Is at 2€, and the Conversion rate amounts to 5%.

Alternatively, you could also use a smaller Budget of 500€ Start to test the costs and success of your campaigns.

• clicks: €5,000/€2 = Clicks 2,500
• Conversions: 2,500 clicks × 5% = 125 conversions
• CPA: 5,000€/125 conversions = 40€ per conversion

Such a calculation helps you understand the efficiency of your campaigns and, if necessary, make adjustments to improve results.

Auction principle and AdRank

Google Ads works after a Auction principle, which is activated every time someone makes a search query.

In this auction, it is decided which displays are switched on and in which order they appear.

A decisive factor in this auction is AdRank.

The AdRank is calculated by the maximum CPC (cost per click) with Quality Score is multiplied.

A higher AdRank means a better position of your display And can at the same time the expenses Lower.

It is therefore important to use both CPC as well as the Quality Score to optimize in order to be successful in the auction.

AdRank and Quality Score

The AdRank is a central factor in awarding Advertisements in the Google Ads auction.

It is calculated by the maximum CPC with the Quality Score is multiplied.

The Quality Score is a measure of the quality and relevance of your display and is used by google based on various factors calculated.

This includes the relevance of display for the search query, the quality and relevance of the landing page, and the historical click rate (CTR) of the display.

A high Quality Score Can not only the Cost per click Lower, but also the position of your display improve, resulting in higher visibility and more clicks leads.

How do we maximize the ROI of your Google Ads campaigns?

To ensure the success of your Google Ads campaigns to increase and the Google Ads costs To reduce, we use the following strategies:

• Optimizing keywords: We are specifically looking for relevant keywords and use Long-tail keywords, such as 'best marketing for small businesses, 'to Click costs to lower and the relevancy to increase. Long-tail keywords are less competitive and often cheaper, which leads to a better cost-benefit balance.
• Quality score improvement: We create high-quality ads and optimize the Landing pages, around the Quality Score to increase. The better the quality score, the lower the cost per click and the higher the ad position.
• Targeted bidding strategies: With clever Bidding strategies like Target CPA or Target-ROAS We use your budget effectively. By using automated bidding strategies, we can ensure that your budget is optimally spent to achieve the desired results.
• Continuous analysis: Through regular data analysis, like the Evaluation of conversion data, and permanent adjustments We are constantly improving the performance of your campaigns. This is how we ensure that your campaigns are always up to date and deliver the best results.
• Adapting to trends: We are constantly adapting your campaigns to new trends and developments so that they always stay up to date. If there are new marketing trends or seasonal changes, we'll adjust your ads accordingly. This ensures that your campaigns always remain relevant and appeal to your target group.
• user segmentation: We segment your audience to deliver targeted ads. That means that we have your displays customize to target specific groups of people who are most likely to be interested in your products. For example, we could create a special ad for young adults and another for families. The more targeted your ads are, the better we can make sure they're being seen by the right people.
• A/B testing: Through A/B testing Let's compare different ad variants to find out which one works better. That could mean testing different headlines, images, or call-to-actions to see which version gets the most clicks or conversions. Through continuous Testing Can we keep improving your ads to the best ROI to achieve.
• Landing page optimization: A successful Google Ads campaign doesn't end with the ad — it starts on the Landing Page. That is why we also optimize your Landing pagesso that visitors who click on your ads find a clear and appealing page. A well-designed Landing Page increases the likelihood of visitors becoming customers, which in turn increases the Conversion rate increases.
• Retargeting-Campaigns: Not everyone who visits your website immediately becomes a customer. With RetargetingCampaigns, we remind users who have visited your site of your offer again later. This increases the chance of them coming back and taking a desired action, such as making a purchase or making a contact request. Retargeting is a very effective strategy for retargeting potential customers and getting them to convert.

Why is a professional agency important?

As experienced Google Ads agency (also SEA agency or Google advertising experts) from Düsseldorf, we help you, your Google Ads account to manage correctly and get the most out of your budget.

Our experience and expertise enable us to Cost per click to lower the Ad position to improve and more qualified customers to win for you.

One agency can also help you avoid mistakes that beginners often make.

For example, without the necessary experience, you could choose incorrect keywords that cost a lot but have little benefit.

We have the data and tools needed to ensure that every investment is put to good use.

Our experts ensure that your displays designed effectively and your campaigns are state of the art, so you always benefit from the best results.

Reduce costs and increase effectiveness

We know how important it is to Google Ads costs to stay on top of things without sacrificing results.

With targeted measures, we reduce your Ads costs and at the same time increase the efficiency of your campaigns:

• Target group optimization: We make sure that your displays are only shown to people who are likely to be interested in your offer. In this way, we avoid wastage and reduce costs. It also means that we show ads at specific times of day or in specific regions where your target audience is particularly active.
• Using conversion tracking: Setting up Conversion tracking is critical to understanding how well your ads are performing. We measure which ads and keywords lead to the most conversions and adjust campaigns accordingly. This allows us to focus your budget on the best results.
• Use negative keywords: We set Negative keywords one so that your ads don't appear in irrelevant searches. That means we exclude certain terms that don't match your offer, so you don't waste money on clicks that don't get you anything. For example, if you have luxury goods selling, you don't want to appear for the term “cheap.”
• Optimizing bidding strategies: By adapting and optimizing your Bidding strategies we ensure that your budget is used efficiently. This means that depending on current market conditions, we adjust bids to achieve the best ad positions at the lowest cost. This dynamic adjustment will make your budget always used optimally.

Mistakes that drive up Google Ads costs

There are some common mistakes that the Google Ads costs be able to soar. Here are a few of them and how you can avoid them:

• Blind trust in smart Google Ads: Smart Google Ads can be helpful, but they often take you away control of your campaign and can lead to higher expenses lead. It's important to regularly monitor campaigns and make manual adjustments to expenses to keep it under control.
• All keywords in one pot: Using too many Keywords In a campaign, the expenses increase and reduce effectiveness. It is better targeted Keyword groups to create and optimize them specifically.
• Lack of goal: Without clear goals, your campaign cannot be effective and the expenses climb. Define clear goals and adjust yours Google Ads campaigns Appropriately on.
• Lack of monitoring: Regular monitoring and adjustment of the campaign is critical to ensure that it remains effective and that expenses Stay within limits. Make use of Conversion tracking and other analytics tools to monitor your campaign's performance and make improvements.

A professional Google Ads agency can help you avoid these mistakes and optimize your campaign to expenses to reduce and increase effectiveness.

Let us unleash your potential together

Would you like to know how much you have in your industry for Google Ads Should invest and what potential does it have?

We offer you a free Potential analysis on.

Together we'll find yours targets Out, create a suitable strategy and show you how to work with Google Ads be able to be successful.

Make an appointment now for a free potential analysis!

Our recommendation

Die Google Ads costs are different and depend on many factors.

With the right planning, optimization and support from an experienced agency, you can Google Ads Budget Use effectively to do more customers to win and increase your turnover.

It's about using the budget correctly, constantly testing and optimizing, and making sure you're responding to the needs of your target audience.

Google Ads Can a powerful weapon be in your online marketing be when it is used correctly.

By understanding key cost factors, using the right strategies, and continuously adapting and improving your campaigns, you can ensure that your Return on Investment (ROI) is maximized.

Our job is to help you achieve these goals and ensure the success of your campaigns.

Ready to take your Google Ads campaigns to the next level?

Contact us for a free and non-binding Potential analysis.

Together, we discover the possibilities that Google Ads can offer for your company to achieve your goals faster.

Whether it's more customer inquiries, more sales or stronger brand recognition — we'll show you how to get the most out of your Google Ads campaigns with targeted strategies and optimal budget use.

Make an appointment today and let's grow together!