When it comes to advertising on Google, many businesses are interested in knowing how much a typical click costs. The answer, however, is not so simple. The cost of a click in Google Ads is influenced by various factors, but the most significant is the competition for and intent of the keywords you are bidding on.
Understanding the Influence of Keywords on Google Ads Pricing
In digital marketing, pricing is not based on the format of the ad but rather on the intent of the keywords and the competition for them. This means that you can expect to pay more for high-intent keywords compared to those with lower intent. For example, if you are a roofing contractor, you can expect to pay more for a high-intent keyword like "roof repair near me" than for a lower-intent keyword like "how much does it cost to repair a roof." In competitive markets like legal and accounting, the cost per click can be significantly higher.
What is the Average Cost per Click in Google Ads?
If we take into account all businesses and keywords in the US, the average cost per click on the Google Search Network ranges between $1 and $2. On the other hand, the average cost per click on the Google Display Network is typically less than $1.
Understanding the Cost of Long-Tail Keywords
While some people believe that high-intent keyword categories, such as legal or insurance, are the most expensive, the reality is that long-tail keywords typically account for the majority of searches and are often more affordable. For example, a search for "exterminator" has a volume of 97,000 and a cost per click of $16.00. In contrast, a search for "how to get rid of ants in the kitchen" has a volume of 9,100 and a cost per click of $1.40. Although the intent may not be as strong, the commercial intent is still there.
What are the Most Expensive Keywords in Google Ads?
The cost per click of a keyword can vary depending on industry and competition. Listed below are the most expensive keyword categories in Google Ads:
Category | Cost |
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 |
To find out how much the average click in your industry vertical cost please read my article on using Google keyword Planner here.
What are the Most Expensive Keywords in Bing Ads?
Bing is growing in market share, and the cost per click for a keyword category can vary. Here are the most expensive keyword categories in Bing Ads:
Lawyers - $109.21
Attorney - $101.77
Structured settlements - $78.39
DUI - $69.56
Mesothelioma - $68.95
Treatment - $67.46
Annuity - $67.31
MBA - $62.78
Phone - $53.94
Insurance - $53.14
Diploma - $52.73
Source: https://www.wordstream.com/blog/ws/2015/03/19/most-expensive-keywords-bing-ads When it comes to Google Ads, the key to success is to strike the right balance between budget and strategy. Understanding how much you need to spend and where to allocate that budget can be a tricky process, but with the right approach and knowledge of your industry and audience, you can create effective campaigns that generate strong returns on investment.
What is the Average Google Ads Budget for Different Businesses Verticals?
A common inquiry from those interested in pay-per-click (PPC) advertising is the average Google Ads budget for a "typical" business. Although determining an exact figure is challenging, understanding the average spend by industry can provide valuable insight. As part of a comprehensive digital marketing strategy, Google Ads play a crucial role in enhancing online visibility and driving conversions.
Examining average cost-per-click (CPC) data can offer a clearer picture of the competitive landscape in various industries. The top five sectors with the highest competition and CPCs include:
Insurance
Online Education
Legal services
Marketing and advertising
Internet and telecom
By analyzing this information, businesses can make informed decisions on how to allocate their Google Ads budget effectively. As online marketing costs vary significantly across industries, understanding industry-specific trends is essential for optimizing PPC campaigns and maximizing return on investment (ROI).
Summing it up. While the cost of Google Ads can vary greatly depending on factors such as industry, keyword intent, and competition, the overall average cost per click falls between $2 and $4 on the Search Network and under $1 on the Display Network. However, it's important to remember that these figures are just averages and can vary widely depending on your specific circumstances as shown above. By taking a strategic approach to your Google Ads campaigns and continually analyzing and adjusting your budget and targeting based on performance data, you can maximize your ad spend and generate strong returns on investment for your business.
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