Did you know that 270 million people use Google every day? In the decades that it’s been around Google has transformed from a helpful tool into a daily necessity.
Since so many people rely on it it’s also become one of the most powerful advertising mediums in the industry. It’s completely changed the way we gather and use customer data.
If you’re considering advertising on Google, then you likely have some questions that you want to be answered. For example, exactly how does it work? And how much does a search engine ad cost in 2022?
If you want to learn the answer to these questions and more, then you’re in the right place. In this article, we’ll teach you everything you need to know about search engine ads. Let’s get started!
How Does Google Ad Work?
When you talk about search engine ads it’s hard not to mention Google. This search engine behemoth currently runs the show when it comes to search engine advertisements. And, at the heart of its system is Google Ads.
So how do ads on the search engine work? Google Ads runs on an auction system. However, you’re not bidding on ad space. Instead, you’re bidding on search keywords. Advertisers go through a list of relevant keywords that pertain to their business.
From there, they bid on the keywords. They can choose a specific amount of money that they’re willing to pay every time someone clicks on an ad containing the keyword. The upside to this is that you’re only paying for traffic that’s coming into your website.
The downside is that you need to compete directly with other businesses for these ads. That, in turn, can cause the price to increase. Now let’s take a look at the average amount that you can expect to spend on a search engine ad in 2022.
How Much Does the Average Search Engine Ad Cost in 2022?
Sadly, there is no simple answer to the question, How much do most people spend on search engine ads? This is because search engines give you the ability to set your budget when advertising on their site.
However, we can say that the average cost-per-click amount usually falls around $2.69. And, most businesses will usually spend between $9,000 and $10,000 on Google ads every month.
But should you be spending this amount? Ultimately, it depends on your specific business. The SBA recommends that small businesses spend seven to eight percent of their revenue on marketing costs.
So, the budget for search engine ads will be different for each business depending on your revenue. However, regardless you should make sure that you don’t spend money on advertising efforts that you can’t afford.
How to Make a Daily Budget With Google Ads
Google Ads works in a slightly different way than some of the other search engine ads out there. This system works on a daily budget. Your daily budget is the amount of money that you want to spend on ads every day.
You can set up and edit your daily budget any time that you want. This is ideal because it allows you to target your campaign at certain times of the day when traffic for searches is at its peak height.
However, at the end of the day, Google will not spend more than the amount that you designated in your daily budget. So, how do you determine your daily budget? The first is the performance planner tool.
This allows you to optimize the performance of current campaigns that you’re running. The other tool is the pay-for-click option. This allows you to set the maximum amount of money that you’re willing to spend on a Google Ad.
Factors That Affect Search Engine Ad Cost
We’ve gone over the average cost of running a search engine ad. However, as we mentioned before, this figure is subject to change for each individual.
This is because there are a variety of factors that can ultimately influence the final price of the search engine ad. So, to give you a better idea of what you can expect to pay we’ll go over some of these factors.
1. The Industry the Ad Is For
Not all industries are made the same. Some cost more for pay-per-click than others. For example, the law and government industry are one of the most expensive pay-per-click industries out there. One-click costs roughly $6.35.
Meanwhile, the retail industry is one of the most affordable, with the average pay-per-click price landing around $0.53. Meanwhile, Medicare leads generally fall in the middle, with $3.13 per click.
As such, certain industries may need to adjust their strategy depending on how expensive it is to advertise them on search engines.
For example, if you work in an expensive industry, then it might be worth it to only purchase keywords that you’re certain will increase your traffic. With more affordable industries you can be a little more flexible in terms of the keywords that you select.
2. The Country the Ad Comes From
The location of the search engine ad can also affect the final price. Remember that people in different countries search for different things. As such, one term that’s popular in one country might be unpopular in another.
Many businesses also run international campaigns which can certainly affect the price of keywords in certain countries. The United States and the United Arab Emirates currently have two of the highest CPC.
Meanwhile, most keywords in African and Asian countries are dramatically lower. As such, the country that your business is located in will likely influence the way that you run your search engine marketing campaign.
3. Google Networks
When people think of Google, they tend to only envision one network running everything. However, this isn’t true. The reality is that there are two more networks besides Google Ads. The first is the Google search network.
This network shows your audience ads for your landing page every time they search for the relevant ads. However, this is different from the other network, Google Display. Google Display network shows advertisements for your website on another popular type of website.
These popular websites then receive a commission every time someone clicks on your ad. Generally speaking, Google Display is much more affordable than Google search. Usually about 50% less expensive to be exact.
4. The Competition
As we mentioned before, one of the downsides of advertising on search engines is your competing against other businesses for the space. This, in turn, can affect your marketing strategy. For example, let’s say there’s a keyword you want that you know will increase traffic to your website.
If another business also wants that keyword, then there will be a bidding war until someone gets it. This, in turn, drives up the price for everyone. However, there is a flip side to this.
If no one wants the term you need, then you can usually get it for a great price. As such, you might need to get a little creative when targeting certain demographics.
5. Device Targeting
In the past, people only used desktop computers to search the internet. However, these days more and more people are relying on their mobile devices to do this. You can target keywords specifically at these devices.
For example, let’s say you have a young target audience. Odds are that they’re all using their mobile phones to search for things. As such, you can target them directly on the devices they use.
Mobile CPC also tends to be much cheaper than desktop searches. As such, you can save a lot of money with this type of strategy too.
6. The Quality Score
Certain keywords get more results than others. To compensate for this, Google provides each one with a quality rating. The higher the rating, the more likely people are to search for that specific term.
As such, you can expect to spend a lot more money on keywords with high-quality scores than lower ones. Google will also assign you a score based on the strength of your ad campaigns. If your score is hirer, then it will be cheaper for you to advertise on the site.
Want More Content? Keep Reading
We hope this article helped you answer the questions, How much does a search engine ad cost in 2022? As you can see, there’s no easy answer to this question. The many different factors mean that it can vary heavily from person to person.
However, regardless of the cost at the end of the day, it’s worth it if the ad can put you in touch with your audience. As such, we think it still represents a sound marketing strategy.
Did you enjoy this article? If the answer is yes, then you’re in the right place. Keep exploring to find more topics that you’re sure to love.