Home » Google Pay Per Click | How much does it cost?
Three of the online marketing service GVATE provide are conversion rate marketing, SMO & SEO services, and Google PPC. We’ve talked about how to increase conversion rate on Twitter, Facebook, LinkedIn and Live Chat. Then how does Google PPC work and how much does it cost?
What is Google PPC?
What is Google PPC?
Google PPC, aka Google Pay Per Click, is also called Google AdWords, which is the name of the service. Its function is pretty simple. Google PPC is the most popular PPC advertising system worldwide. The platform allows business and individuals to purchase the listing position in the Google search result and other Google properties. The results, of course, are mixed with organic results, which are mainly the fruition from search engine optimization where your page will rank higher organically. To learn more about how SEO works, click here! For Google AdWords, you need to pay for every click that’s generated through Google platform.
You can buy the ads in an auction, where you bid on the keywords and how much you are willing to pay for each click. Therefore, no doubt about it, the higher price your price is, the more likely you will rank number one in the sponsored results. For example, if you bid for 10 cents for the keyword “SEO”, and nobody else bid higher than you (which, for the side note, is not so likely if you really only bid for 10 cents, then you will put 10 cents to the Google’s pocket for every click. Say 1000 people click on your page from Google sponsored result, yay! It costs you about a hundred dollars to get the traffic! But you can see your ad shows up in the top spot on the Google searching results! Money breeds money. That’s business.
When a user types in certain keywords, Google system will go into its database of AdWords advertisers and automatically pick a certain number of pages to appear in the sponsored result area. How to be the lucky one? Some easiest tricks include quality and relevance of keywords, your ad campaign, the size of your keyword bid and the fee you offer each time one of your ads is clicked. Unlike SEO, where, in order to rank higher in Google organic result, you need to pay more attention to your conversion rate, website design, and more details that are mostly adjusted on your website, Google PPC requires you to pay more attention to Google system itself. Want to see more comparison between organic and inorganic results? Click here!
Because Google is very considerate and knows that money is, most of the time, what business is about, you can set the budget for your advertising in AdWords program. You will have control over what keywords you need to bid for and only pay for those certain keywords you choose. If there is one keyword you should remember about Google AdWords system, it is “keyword.” Welcome to online marketing!
30 Google Pay Per Click facts
30 Google Pay Per Click facts:
Now you know what’s Google PPC. Sounds like it can be a pretty useful tool for your online marketing but you need more information to see if it’s the BEST fit? Is it really as good as you think it may be? Is there any more you should know before you rummage through your purse to find the coins to support your online business and give them willingly to Google, the online business babe? Here we present you with some facts about Google AdWords.
- Google AdWords was launched in 2000, and at first, it charged a monthly fee: Google Pay Per Click has revolutionized the online advertising model, and it was one of the starting for Google to actually make revenue. Surprisingly, the system was first brought up by a college dropout, Scott Banister at the age of 18. Note: Never underestimate young people. You do not want to miss Mark Zuckerberg.
- The auction system was not launched until 2002.
- Yahoo-Bing, Microsoft all followed Google’s lead to create their search engine advertisement system. Basically, Google is the groundbreaker.
- 89% of the traffic generated by PPC ads has not been replaced by organic clicks. However, there is a dispute. As people becoming more media and internet savvy, psychologically they may turn to the results recreated by SEO. The best strategy may be to combine PPC ads and SEO.
- An organic listing supplement with a PPC ad can increase the total numbers of clicks by roughly 91%, and can increase conversion rates by total 45%.
- Advertisers can receive AdWords credits if you are suspicious of the product of lick fraud. There was a click fraud lawsuit back in 2006, and Google ended up settle on a ninety million dollars click fraud settlement fund. It’s important to know your rights!
- If you own an insurance company, be aware that the keyword “insurance” cost you up to $55 per click! “Loans” and “mortgage” are the following most expensive keywords, costing about $45 per click.
- In 2011, Google once forfeited 500 million dollars allowing Canadian pharmacies to advertise prescription drugs online illegally. Google did not stop such move at first because, allegedly, Larry Paige, the founder of Google, was tempted by the lucrative revenue.
- Google’s over year CPCs dropped by 5% in Q1 of 2012. At the same time, Yahoo-Bing’s CPC increased by 18%. That being said, having the most share in the online search engine advertisement market, Google is still the bellwether and has received increased clicks over time.
- 20% of the total searches on Google are dependent on locations. GVATE LLC itself specially targets at the customers in New York area. However, we can also help the clients around the world to attract their own specific local customers.
- 25% of Pay Per Click clicks come from model devices. At the age of personal digital devices, it is crucial to optimize your marketing campaigns for mobiles.
- Revenue from AdWords has grown 41,754% since 2001. To break it down, the revenue has increased from 66.9 million dollars to 28 billion dollars. Still hesitate to jump on the boat?
- 97% of Google’s total revenues come from online advertising.
- Business can, in turn, make about 2 dollars in revenue for every 1 dollar they spend on AdWords. If you’re in an insurance company, keep in mind, don’t be discouraged by the huge amount of money you need to invest in Google Pay Per Click system! You have the chance to win back about 110 dollars per click!
- The click-through rate for an advertisement ranking at the first position is in average 7.94%.
- Results in the top position from google search can generate 10 times more clicks than those in the side position.
- Google has dominated mobile search advertising and 97% of mobile searches go to Google.
- In 2011, Google search and advertising systems contributed around 80 billion dollars in economic activities simply across the US. The online advertising market around the world is potential.
- In 2011, the finance and insurance industry spent about 4 billion dollars on AdWords.
- Even Amazon spent about 55.2 million dollars on AdWords adverting in 2011. Curious about whether you should choose Amazon or eBay for your business? Click here!
- If not for the obvious right-hand column in the result results, 45.5% of the internet users can not differentiate organic and inorganic (pay-per-click) search results.
- Do not forget that Google’s properties include Youtube, Gmail, Blogger, Google+ and so on. Google owns the largest online display advertising network. 99% of Google’s top 1000 clients are running campaigns on the Google Display Network and YouTube. The market is huge. It is left to you to make the best use of them. You can consult a GVATE SEO expert now to learn more!
- The Google Display Network serves about 180 billion impressions per month, about 6 billion per day.
- Also do not forget that Google is very international. Its display campaign has reached 80% of global internet users.
- The click through rate of an advertisement on average on Google Display Network is 0.4%, ten times higher than the Facebook ad.
- Under the exposure of advertisements in Google search result, internet users are about 155% more likely to search certain keywords.
- On the top of the Google search result can help you get at least 33% of the title search traffic from certain keywords.
- Search Engine have 3 times more traffic to content sites than social media have.
- 91% of US Internet users search online each month.
- Over 100 billion searches conducted globally each month.
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Click here to read more facts about SEO!
How Much Does Google AdWords Cost?
Now you know the basic information about Google AdWords. Let’s get down to business. Let’s talk about money.
If you are new to Google Pay Per Click, the answer to the question above may disappoint you. Your spending depends on lots of factors. It is the same as traditional advertising. Generally, the more you spend, the more revenue you will get, though there is the exception, of course. You can yet still get a hang of it by knowing how to spend your money in the right place. Here are 2 factors that should be in your consideration:
Again, Google AdWords is mostly about where your webpage is under certain keywords. Some keywords are more expensive and some are not. It usually depends on how competitive that market is. To determine what your keywords is thus your first focus. In the state, the average CPC in Google AdWords is about 1 to 2 dollars on the online searching network. On the display network, it can cost as low as under 1 dollar. It is important to note that the bidding price for keywords has been increasing along the way. As the whole market globally is becoming more and more competitive, the keywords will be pricier and pricier. It is better to start early than late.
Here is the list of the most experience keyword categories and their respective Google Cost Per Click.
- Insurance: $54.91
- Gas/Electricity: 54.62
- Mortgage: $47.12
- Attorney: $47.07
- Claim: $45.51
- Loans: $44.28
- Lawyer: $42.51
- Conference call: $42.05
- Recovery: $42.03
- Donate: $42.02
- Degree: $40.61
- Treatment: $37.18
- Credit: $36.06
- Software: 35.29
- Classes: $35.04
- Rehab: $33.59
- Trading: $33.19
- Hosting: $31.91
- Transfer: $29.86
- Cord blood: $27.80
These are just the categories, and the average prices within each category. The price for specific keywords in the category may vary.
- Agency Costs
Small businesses, especially startup, sometimes rely on agencies to help them handling Google AdWords. Agencies are better expert in PPC and can save your time to run your business. PPC management software can be intimidating if you have little or no experience, however powerful its function is. You should choose a reputable and trustworthy agency that has experiences in the online marketing field and has at least made itself ranking high in Google search result. We know that time is money at this age, and you don’t want to waste either your money or time. GVATE LLC ranks No.1 in Google result under the keyword “NYC SEO expert.” Consult our expert now to learn more! You can also learn about our SEO service here. Our Google PPC marketing service here. Our conversion marketing service here. Our WordPress SEO service here. Our website design service here.
Generally, financial and insurance companies usually spend the most on Google AdWords. The companies in two sectors in the state can spend as much as total 1.2 billion dollars. Individual companies in these industries spend less, around 40 to 50 million dollars a year, according to Google AdWords. You surely don’t need to spend too much if you’re on a tight budget. There are many companies who spend only about $1,000 per month. At the end of the day, it’s about what’s best for your business. You can consult GVATE expert to know about the plan that fits your company. Our professionals can provide you with detailed and personalized service. Don’t miss out!
[Condensed version of the article]—Google Pay Per Click, aka Google AdWords, is an online advertising strategy where advertisers pay for each click that’s generated from Google search result. It has been a booming platform for business, small and large alike. To determine how much it costs, you need to consider carefully what keywords you target at and what agency you choose.
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Posted on May 20, 2016 by GVATE in GVATE Press, Lead Generation Blog NYC, SEO BLOG