How much do Google Ads cost? A Quick Step by Step.

"Half the money I spend on advertising is wasted; the trouble is I don’t know which half."

- John Wanamaker, American merchant

So, how much do Google Ads cost?

This is a very common question asked by business owners and even agencies not yet involved in Paid Search.
So, let's jump into it!

As mentioned on our subtitle it isn't FREE.
However, the good news is that you'll JUST pay whenever your prospect/customer clicks on your ad.

Then you could ask, "ok, but how much would it cost to MY BUSINESS?"

The basic formula is:

"The price for each single click on your ad X how many clicks you receive per day/week/month."

Then you could ask, "ok, how would I know these two variables and finally 'how much do Google Ads cost?'".
Ok, let's now see this in practice:

Step 1 - Go to Google Ads Keyword Planner Tool

The best tool to help you discover "How much do Google Ads cost?" is the Google Ads Keyword Planner Tool.
It is the most official, updated and reliable tool out there.
(Yes, you'll need to create a Google account to access it, more info here).

Once inside the Google Ads Keyword Planner Tool please click on "Discover New Keywords".

Step 2 - Input your business characteristics/data

After clicking on "Discover New Keywords". you'll see this screen:

Two options here:

• "Start with keywords"

or

• "Start with a website"

Using the best of Google Ads technology and user experience let's go with "Start with a website".
(If you don't have a website send us a message and we can help with the "Start with keywords" option)

After clicking on "Start with a website" you'll see this screen:

Now please insert your website.
Let's take for example the website of South Kensington Books, an independent bookshop in London.

Please click on the blue button "Get results".
You'll then this (maybe overwhelming) screen below:

Don't panic (💆🧖‍♀️) and follow the step below.

Step 3 - Let's do some math

Now please click on the "Download keyword ideas" button here at the top right side:

Now, with the Excel file downloaded, please edit it to have these:

• Just the top 30 Keywords (up to row 31);

• The columns:

  Avg. monthly searches
  Top of page bid (low range)

  Top of page bid (high range)

It should look like the following:

Now please find the Average of column B figures (just select all cells and see the Footer or apply the =AVERAGE formula).
We've found the number 1,734. But what does it mean?
Basically, it's the "monthly size of your Keyword market", i.e. how many keywords related to your business are searched per month in your area.

However, be aware that when your campaign and ads are live, doesn't mean you'll receive ALL the Clicks from ALL these searches. Remember that Google Ads Paid Search is an auction and some other competitors will be bidding for the same Keywords as you. ;)

So, to establish some reality to these 1,734 monthly searches we'll apply a 5% CTR (Click Through Rate).
In other words, you'll receive clicks on your ads 87 times a month. Ok, let's hold that number.

Step 4 - The math keeps going…

Now let's jump to columns C and D. They show the minimum and maximum CPC (Cost per Click) you could potentially pay for each Click on your Ads.
Please take their overall Average. Same as before, just select all cells and see the Footer or apply the =AVERAGE formula across all cells.

As a result, we have the £0.73 CPC.

Step 5 - Final calculation

Now, it's utterly simple.

87 Clicks per month
TIMES
£0.73 CPC
EQUALS
£63.51 Google Ads cost per month.

Job done!

How was that? Easy to follow the step-by-step?
Please, apply to your business and let us know how it was!
If you have any doubts please don't hesitate to shout via here or contact@bidhour.co.

Bidhour helped more than 100 agencies and clients from huge to tiny to thrive in their Paid Search activities.
Please, let us help you too.

Contact us here.