How Much Does Google Ads Cost in 2022

The first question people ask when they plan to launch a Google campaign is – how much does Google ads cost? It’s actually a good question as it will help newbie advertisers plan their budget accordingly.

But the reality is that there’s no easy, one-size-fits-all answer to the questions. However, this article will help you understand some of the factors affecting the cost of Google ads.

First, let’s start with the factors that impact Google ads pricing.

Factors that Impact Google Ads Pricing

As I mentioned earlier, it’s difficult to answer the question – how much does Google ads cost in 2022.

And that is because several factors affect Google ads pricing. These factors include your niche or industry, customer lifecycle, current trends, and the ability to manage your account.

Let’s discuss these topics individually..

#1. Your Niche or Industry

One of the factors that influence Google ads pricing is the niche or industry you operate.

For instance, if you are in the business services vertical like legal, accounting, real estate, etc., Google ads tend to cost you more.

And that is because these niches are very competitive, thus leading to higher costs per click (CPC).

Generally, clients in the professional services industry are highly valuable. One new client can bring between $1000 to $10,000, depending on the nature of your business.

So, stakeholders in this niche are willing to pay a CPC as high as $50 to acquire a new client.

Similarly, your CPC may be lower if your business is in the arts and entertainment vertical. And that is because these businesses need to reach a lot of customers to hit $1000 or more.

#2. Customer Lifecycle

To answer the question – how much does Google adds cost in 2022, you need to understand the customer lifecycle.

Outside your industry, your customer’s lifecycle can also influence Google ads pricing.

If your services are very expensive, it may take prospects longer to move through the decision making process.

And while these prospects move through the journey, you have to ensure that your brand stays top of their mind.

It may require them to visit your website severally, download content, participate in your webinar, and do several other activities before deciding.

And during this process, you need to constantly retarget these customers so that your brand will stay top of their minds.

#3. Current Trends

The prevailing trends in your industry are one of the factors that affect Google ads pricing.

Understanding the advertising industry so well will realize that consumer trends and online advertising platforms never rest.

And as a business owner, you should be current with what’s happening in your niche and how you can leverage these trends to grow your business.

Some trends make the Google cost per click go down while others increase it. Just try to study your industry, understand what’s happening, and analyze how to leverage it to boost your sales and profitability.

#4. How Well You Manage Your Account

Still, wondering how much does Google ads cost in 2022? Well, it also depends on how well you manage your account.

A recent study revealed that the average ROI on Google ads is about 800%. And this is about $8 for every $1 spent.

Again, it’s not automatic. It depends on how well you manage your account. If you don’t optimize your ad properly, you may pay more and get fewer results.

Here are a few tips to help you get the best from your Google ads;

Keep a proper Google ads account structure.

Try to keep track of your performance and make data-driven optimizations.

Maintain your keyword lists.

Perform account audits regularly.

How Does Google Ads Determine Your Cost Per click?

The question now is how much does Google ads cost, and how does Google ads determine your cost per click.

Of course, Google ads work like an auction, but the winners aren’t chosen based on bid alone.

That means you may not have to pay a maximum bid to be able to advertise for a particular keyword.

In the next few sentences, you will understand how Google ads determine the cost per click and what you can do differently to pay less.

#1. Quality Score

One factor that determines your Google ads’ cost per click is the quality score. Quality score is how your ads or campaign is relevant to a particular search query.

The score is from 1-to 10, which is determined by the relevance of your ad and landing page to the search query.

The more relevant your ad and landing page is to the search query, the higher your quality score and your ad’s chances of appearing on SERP.

#2. Ad Rank

Once Google establishes your quality score, it will calculate each contending ad’s Ad Rank.

Generally, Ad Rank determines if your ad will be placed in the paid results section; if yes, where will it be placed?

Google determines your Ad Rank by multiplying your quality score by your maximum bid (the maximum amount you are willing to pay per click on your ad).

And Google will always show ads with the highest Ad Rank scores on SERP.

#3. Cost Per Click

Now we are in cost per click. Once your ad appears on Google Search Result Pages, you won’t pay unless someone clicks on it.

And most times, you may not even pay your maximum bid for the click. As I explained earlier, Google will have to consider several factors, like your quality scores and Ad ranker.

Now that I have answered the question – how much does Google ads cost, do you have any other questions? Kindly share your thoughts in the comment below.