How much does Google Ads cost in 2024? Is it very expensive? Is it cheap? Is it worth my investment?
Are you a business eager to get your products or services shining on Google Ads but scratching your head over these questions?
Let's turn that confusion into clarity -
Google Ads doesn't come with a fixed price tag. It's not a one-size-fits-all monthly subscription, nor is it a free service. Instead, it operates on a pay-per-click (PPC) model, giving you the power to control your spending based on the performance of your ads.
This means that the cost of Google Ads DEPENDS.
On what does it depend you may ask?
Read our blog post to learn everything about Google Ads costs in South Africa in 2024! We will discuss the PPC model, the factors that affect it, and some tips on how to manage your Google Ads budget effectively.
What Is the Pay-Per-Click Model?
As mentioned before, Google Ads works on a pay-per-click (PPC) model. This means that you only pay when someone clicks on your ad. So, you may be wondering, how does Google determine the cost of each click?
Well, it is based on a bidding system where advertisers bid for ad placement on certain keywords. The more competitive and in-demand a keyword is, the higher the bid will be.
However, it is not just about having the highest bid—Google also considers the quality and relevance of your ad and website landing page to ensure a positive user experience.
Factors Affecting Google Ads Cost
Now that we have established how Google determines the cost of each click let's dive deeper into what factors can affect this cost.
1. Your Industry
The biggest influence on Google Ads costs is the type of industry you are in. Legal, real estate and finance businesses tend to have a higher cost-per-click (CPC) than industries like entertainment or travel. This is because there is a high demand for these keywords, and the competition can be fierce.
2. The Keywords You Bid On
To set up a Google Ads campaign, you must decide which keywords you want your ads to appear for. As mentioned before, highly competitive keywords tend to have a higher CPC.
3. Current Trends
People follow trends.
Therefore, the cost of certain keywords can fluctuate depending on what is currently popular or in demand. For example, during the Olympics, the cost of ads related to the event may increase due to a higher search volume and competition among advertisers.
4. Quality Score
As we briefly mentioned earlier, Google takes into consideration the quality and relevance of your ad and website landing page. This is known as your Quality Score. The higher your Quality Score, the lower your CPC will be.
How does Google determine your Quality Score?
A quality score ranges from 1 to 10 and looks at how well your ads' landing page, keywords, and click-through rate (CTR) are performing. A higher score means that Google sees your ad as relevant, helpful, and of high quality to the user.
Your Quality Score influences your keyword bidding strategy. A lower bid combined with a high-quality score can enhance your ranking in search results.
5. How You Manage Your Google Ads Account
While managing a Google Ads account can be time-consuming, it's a crucial part of achieving a strong return on investment.
Having a well-thought-out strategy and monitoring it closely can help you keep your costs down and your returns up, putting you in control of your advertising budget.
If you want to keep your Google Ads costs down and your returns up, here's what you need to do:
- Maintain an organised structure for your Google Ads account.
- Perform regular account audits.
- Optimise the account by looking at which ads and keywords are performing well and stop spending on those that aren't.
- Use negative keywords to filter out irrelevant searches.
- Continuously test new ad variations to improve performance.
- Keep an eye on your competitors' strategies and adjust yours accordingly.
Overall, actively managing your account is key to keeping costs down and achieving a strong ROI.
Budgeting for Google Ads
Now that you know what affects the cost of Google Ads, how should you budget for it? What's it going to cost you per day or month, and how can you manage it effectively?
Let's help you.
How Much Should You Budget for Google Ads?
It's not easy to determine an exact budget for Google Ads; it depends on various factors. The best way to find out is to set up your Google Ads account, create a campaign and see how much it costs you per click for your desired keywords.
You can also ask our Google Ads Services team to create a forecast for you. Our forecasts give you a recommended budget and monthly pricing based on your business goals, industry, and desired keywords.
But, depending on your industry, you can expect an average of R3 - R150 per click.
What should you budget per day?
Again, this varies depending on your specific business goals and industry. But let's say you have a daily budget of R500. If your average cost per click is R5, that means you can get 100 clicks on your ads per day.
What should you budget per month?
Similarly, if you have a monthly budget of R10,000 and your average cost per click is R5, then you can expect to get 2,000 clicks on your ads per month. Of course, this is just an estimate, and it's important to monitor and adjust your budget continuously based on the performance of your campaigns.
Managing Your Google Ads Budget
Once you have determined a budget for your Google Ads campaigns, it's essential to actively manage and monitor your spending.
Here are some tips:
Set specific goals: Before launching a campaign, set clear goals for what you want to achieve. This will help guide your budget decisions and allow you to measure the success of your campaigns.
Monitor performance: Keep an eye on the performance of your ads and adjust your budget accordingly. If certain keywords are performing well, you may want to allocate more of your budget towards them. On the other hand, if some ads are not performing as well, you may want to reduce their budget or reallocate it to better-performing campaigns.
Use ad scheduling: With Google Ads, you can schedule your ads to run at specific times throughout the day. This allows you to target your audience during peak times and potentially save money by avoiding low-performing hours.
Utilise bidding strategies: Google Ads offers various bidding strategies that can help optimise your budget. Experiment with different strategies and see what works best for your campaigns.
Regularly review and adjust: It's important to regularly review your campaign performance and make adjustments as needed. This will ensure that you get the most out of your budget and drive the best results for your business.
Keep in mind that setting a budget is not a one-time decision – it should be continuously reviewed and adjusted based on the performance of your ads.
So, How Much Does Google Ads Cost In 2024?
In summary, the cost of Google Ads can vary significantly depending on various factors such as your industry, competition, and bidding strategy.
You can expect to budget anywhere from R3 to R150 for a click, but it's not set in stone.
Are Google Ads services worth your investment?
Yes, it can be worth your investment if you have a well-planned and strategic campaign that is consistently monitored and adjusted for optimal performance.
If you don't have experience working with Google Ads, your best bet would be to hire Google Ads specialists.
At Starbright, a digital marketing agency in Pretoria, we have a team of Google Ads-certified specialists who can help you create and manage successful campaigns for your business.
We can send you a forecast, advise you on the cost of Google Ads for your specific business, and strategise to give you the best results.
Don't let the cost of Google Ads hold you back from this powerful advertising platform. Contact us today for assistance!