Google Ads keyword advertising 

There is no doubt that Google Adwords is the most successful digital advertising channel in the world right now. The channel has helped U.S. companies generate new customer encounters and direct sales. Every month, thousands of companies invest thousands of dollars in Google Ads search advertising in the United States. 

However, the majority of companies that start advertising spend a few hundred dollars per month. In other words, it is possible to start advertising with an amount that is just right for your business. The important thing is to get started - that’s the only way to get results.

An example of Google Ads keyword ads

What does Google Ads search advertising cost?

Google Ads keyword advertising is already an established way for many businesses to get more visitors or customers to their websites. The reason for this is that you can begin with a small budget and see if you can attract more customers to your business website and eventually boost sales. It costs nothing to set up a Google Ads account; you only incur costs when a potential customer clicks on your ad. 

The recommended minimum budget for Google Ads keyword advertising is a few hundred dollars per month, and on average, $500 will get you around 500 new potential customers to your website. However, you will know your exact budget needs once you know how competitive the keywords you are using are, i.e., how many other people want to advertise on Google for that keyword. 

Keyword advertising and its price are determined by competition, and the more companies that want to advertise their services with the same keyword, the more the price will increase. Below is an illustration of the word “window refurbishment” and some related keywords and their pricing.

Google Ads keywords and click-through rates for “window renovation.”

The image above shows that an ad for “window repair” costs $2.79 per visitor or click to your website. A click means that the customer has clicked on the image ad shown earlier in this article. So you only pay for those customers who come to your website as a result of the ad. 

Window renovations: example 1

So if you were to advertise with the keyword “window renovation,” your ad could appear to a total of 12,100 customers searching for information on this topic on Google.

Of these, a maximum of 10% will click on your ad.

So you pay 12 100 x 0.10 x 2.79 = $3 375.90 per month

Window renovations, example 2

Below is an example for a local operator for a small area of keywords and their prices.

Let’s consider just two keyword combinations.

“Window renovation Helsinki” has 70 searches and costs $2.25 per search

“Ikkunaremontti Vantaa” has 50 searches and costs 3,28 $/each

So you pay 70 x 0,10 x 2,25 + 50 x 0,10 x 3,28 = 32,15 euros per month

Marketers should carefully plan keyword advertising and budgeting after keyword research. Several tools are available to search for keywords and estimate the necessary media budget depending on the volume of searches and the level of competition. The most common amount spent by companies in the USA on keyword advertising is $500-3000 per month.

Do your own keyword advertising on Google Ads.

If you want to practice Google Ads advertising yourself, get started. All you can lose is a little time and a few hundred dollars. 

This will also help you to possibly buy a service from a digital agency later on, and you’ll be better able to measure the results they produce. You will have to practice advertising every week if you want to succeed at this.

Keyword advertising bought from an agency.

Be sure to compare several providers before making a purchase decision if you purchase Google Ads keyword advertising from a service provider. Ask what kind of report you get to read about the results you receive each month and compare these reports with each other. Reporting should be accurate, and monitoring should be done at least monthly. 

It is also worth discussing at this stage how advertising will be taken forward, i.e., optimized, and how the company will communicate this. There are many terminologies involved in keyword advertising, and it can take time to get to grips with it. 

Therefore, it is essential that you receive answers to your questions and that communication is open. The process will also teach you new things and make the process of advertising easier to understand.

Also, don’t commit to annual contracts but only sign monthly contracts. Monthly contracts generally have a notice period of a few months. This allows you to change operators if needed and keeps your service providers on their toes, as no one wants to lose a customer. A partnership only works if both parties win and can withdraw from the contract if it does not work.

What is the cost of Google Ads keyword advertising?

You can get started with Google Ads for as low as ten dollars, but you should invest a few hundred dollars each month to get results.

If done right, Google Ads keyword advertising is an investment and not a mandatory unproductive cost for your business.

If you just want to learn how to use Google Ads, start with a small amount and practice creating ads and measuring results. 

On the other hand, if you are looking for new customers and an important new sales channel for your business, it is advisable to invest at least $500 per month. You can very quickly start optimizing your ads, and you will find out what your ad clicks cost, which keywords you should leave in your ads, and which keywords are not producing results. 

With optimization, your advertising results will continue to grow. This will also give you increased results for the capital you invest. Google Ads keyword advertising, when done right, is an investment and not a mandatory unproductive expense for your business.

Is Google keyword advertising profitable?

Google Ads keyword advertising is profitable for most businesses. Otherwise, this channel would not be invested, and the money spent on marketing would be allocated to another channel. 

The results generated by this channel are even measurable in real-time, and further actions are taken based on these results, not on a hunch. You can outperform your competitors by using Google keyword advertising, the world’s most common digital marketing channel, to acquire new customers with accurate tracking.

You can’t determine the productivity of Google Ads without starting to advertise and closely monitoring the results. 

This article cannot directly answer whether advertising is profitable for your business, but for most businesses, the customers they get from Google are profitable. In addition, online discoverability is a key aspect of many industries today. 

You want to be listed in search results, preferably above your competitors. Google is primarily a search engine for finding services on an as-needed basis, which is why the customers you attract from Google will most likely contact your business. You will ultimately get contacts and sales from these customers.

What are the ways to measure whether the Google Ads keyword advertising is working?

Before starting a keyword advertising campaign, it is important to define your goals. Whether you want more website visitors, contacts, or direct sales, everything you do should be geared towards the goals you set. 

You can accurately measure the achievement of these goals directly in Google Analytics. Additionally, dozens of different reporting applications are available, among which we recommend Google’s own Data Studio or Swydo. Of these, Data Studio is completely free and easy for any business to use. With Swydo, you have to pay around $100 per month, but this tool offers more features such as social media measurement.

How to get started with Google Ads keyword advertising?

Google offers an easy way and instructions on how to start advertising on your own. You should schedule four hours per week for advertising training, for example, if you are going to start advertising. Advertisers who have been in the industry for many years have worked at many companies full-time. In a competitive market, results are hard to come by. 

But you can practice on a small budget and start to understand how Google Ads works. However, if you want results quickly, I recommend choosing a renowned agency to help with your advertising. For example, you can take part in a training course or, alternatively, let the agency manage your entire advertising account.

If you want to read more on the topic, we’ve put together another article with our expert tips on how to get started with Google Ads. We have also put together tips on effective Google Ads keyword advertisement. Take a look at our blogs to get the advice!

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