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 "How much does Google Ads cost? It’s applicable for someone to ask about the costs if they are a newcomer looking forward to utilizing the potential of paid ads.

If you’ve been trying to grow your business, then you should be aware of the potential pay-per-click advertising holds. Unlike search engine optimization or social media marketing that take a lot of time to show results, PPC can help you put your business in front of the right audience and get qualified traffic and leads to your website quickly and effectively.

What most business owners want to know, especially those who are new to paid search, is how much Google Ads is going to cost them. After all, we all heard stories of companies that invested in ad campaigns only to see their resources wasted with no results to show in the end. Evidently, you don’t want to become a case study for “how not to use Google Ads.”

GOOGLE ADS COSTS 2022

Let’s get one thing clear right from the start: Google advertising has the potential to generate a high return on investment. According to Google reports, the average advertiser doubles their investment rather quickly. In other words, you will get $2 for every dollar invested. But, here’s the twist: you can benefit from this impressive growth only if you know how to set up your ads and manage them effectively. And, that’s where the difficult part lies.

So, let’s take an extensive look at how Google Ads works and how you can set a campaign to generate maximum returns.

HOW DOES GOOGLE ADS WORK?

Before we dive into the costs of running an Ads campaign, let’s try first to understand how this platform works.

One of the biggest misconceptions about Ads is that you need to invest a lot of money to see significant results. While a massive marketing budget certainly won’t hurt, it’s not a prerequisite for running effective ad campaigns. Anyone from small businesses to giant retailers can advertise on this platform and see great returns on their investment. One of the reasons is that you don’t pay for impressions, meaning whenever prospects see your ad, agency sydney,  but when they click on your ad.

Here’s a quick look at the process of setting your ads and bidding for keywords.

The Auction

Every time a user enters a query into the search engine, Google will run an auction to determine which ads are the most relevant to the searcher’s needs. It does so by considering a variety of factors, such as the Quality Score and Ad Rank.

If multiple advertisers have placed a bid on the same search term, then Google will look at their Ad Rank to determine the position of each ad in search engine results and the average cost per click.