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How Much Does Google Pay per Click?

With the growing popularity of Google Adwords, it is not surprising that so many people are asking how much it costs to advertise on the platform. Unfortunately, finding out how much you’ll spend on your Adwords campaign can be complex.

The truth is that there is no one-size-fits-all model when it comes to Adwords. There is therefore no way to give an estimate on the cost of your PPC campaign. Adwords campaigns are customized to meet the specific needs of the advertiser. You therefore have a lot of control over what you spend on your campaign.

AdWords and How it Works
In order to understand how much your PPC campaign would cost on Google, it is important to understand how PPC works on Google. Google’s PPC platform is known as AdWords. The platform allows advertisers to create ads based on specific keywords that they bid on.

The advertisers’ bids represent how much they are willing to pay for each click on their ads. The higher your bid, the better your chances of appearing on the search results page. Your ranking will also be higher than those who bid less than you did on the keyword.

You only pay Google when a user clicks on your ad.

How much will you pay?
AdWords uses an auction system in order to determine the cost and the placement of ads on search results pages. The ranking of your ad is not only dependent on your bid but also on the quality score of your ad.

The quality score of an ad is determined by various factors including the click through rate of the ad as well as the quality of the landing page. The click through rate represents the number of users that click on your ad versus the number of times your ad has been shown.

If you have a high quality score, your ad may be ranked higher than that of another business that bid higher than you did for the keyword.

Having determined your quality score, you can apply the Ad Rank Formula to determine how much Google will actually charge you per click on the ad. The Ad Rank of the ad that appears below yours is divided by your ad’s quality score plus $0.01.

Control your budget
AdWords gives you control over the amount of money you spend on your campaign. You set the maximum amount you’re willing to bid to limit your budget.

 

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