Google AdWords is Google’s advertising system in which advertisers bid on certain keywords in order for their clickable ads to appear in Google’s search results. Since advertisers have to pay for these clicks, this is how Google makes money from search. This infographic will help you understand how AdWords works, detailing the AdWords auction, bidding process and explaining important factors like Quality Score and cost-per-click
Depending on the competitiveness of the keywords you’re bidding for and the relevancy of that keyword to real conversions for your company, AdWords may or may not work for your business. For the most part, we’ve found that Google AdWords is extremely effective for many kinds of businesses, as long as they don’t waste their money on the wrong keywords, or write weak, low CTR ads.
Google AdWords cost
The cost of AdWords depends on several variables.
- Google AdWords is based on an auction system that rewards businesses who have high-quality ad campaigns with lower costs and better ad placement.
- You can exercise tight control over how your AdWords budget is spent using tactics like ad scheduling, geotargeting, and device targeting.
- The average cost per click in Google AdWords is between $1 and $2 on the search network.The average CPC on the Display Network is under $1.
- The most expensive keywords in AdWords and Bing Ads cost $50 or more per click. These are generally highly competitive keywords in industries that have high customer lifetime values, like law and insurance.
- Giant retailers can spend up to $50 million per year on paid search in AdWords.
- The average small business using AdWords spends between $9,000 and $10,000 per monthon their Google paid search campaigns. That’s $100,000 to $120,000 per year.