Are you thinking about advertising online but wondering how much does Google Adwords cost? It depends.


How does Google Adwords work

In order to know how much does Google Adwords cost, it is essential to know how it works. Many factors influence an ad appearing in the top results. And the way those factors are managed can help reduce the cost of your campaigns. That’s why it is worth investing in professional Adwords Management.

The Ad Rank, in which position your ad appears, depends on the Quality Score and the Bid.

1. Quality Score

A high-quality score will reduce Google Adwords cost.

How to check and increase your quality score?

To be able to check the quality score, you need to go to your Adwords account, then go to Keywords and then you will be able to see your quality score for each keyword. If the column does not appear you would need to click the three lines icon on the right top hand.


Once you click the three lines on the top right hand you will be able to personalise which information you want to see on the columns. Have a look and play with the possibilities.


Once you have decided which columns you want to display and reorder them, you just need to click apply.

In the old interface, the three main elements which constitute quality score are visible. In the new interface, you need to place the mouse over the keyword status. Those three elements are:

  • Landing Page Experience

The landing page where the user arrives after clicking the ad needs to include all the relevant information to fulfill the users requirements and it needs to load fast.

It is also advisable to include the chosen keywords in the landing page.

For more information regarding how to create the most successful landing page for your campaigns, you can have a look at our blog post ¨5 Easy Tips to create the Perfect Landing Page¨.

  • Ad Relevance

To increase relevancy between the chosen keywords and the ad, it is best to choose carefully the keywords that will be included in the Ad Group so that the ad is relevant to them. If we include many different keywords the ad relevancy will be reduced. So it is best to keep them targeted and highly-themed. A good number can be between 5-20 keywords in each Ad Group.

It is also important to include the chosen keyword in the Ad copy.

  • Expected Click Through Rate (CTR)

Click through rate refers to the times an ad is clicked in relation to the times the ad is shown (impressions). A low CTR means that the Ad copy is not convincing enough to urge the user’s click. Test different ad copies in order to find the best performers.


A couple of more tips to increase Quality Score and reduce your Google Adwords cost

Moreover, we can add negative keywords. Adding negative keywords avoids showing the ad for those queries. For example, if you run a company which sells trips to Paris, you don’t want to show your ads to someone looking for Paris Hilton information. Adding Paris Hilton as a negative keyword will avoid wasting your money in the wrong target audience.


In addition, you can stop keywords that don’t perform the way they were expected because they don’t bring enough sales, leads, traffic, clicks, etc.


The bid is the maximum amount you’re willing to pay for a click. With an equal quality score, the bid will be the element determining your ad rank.

Depending on how competitive the industry is,  a keyword can be more or less expensive. To know the suggested bids for your selected keywords you can go to Keyword Planner. As we can see in the below example, which targets Ireland, some of the insurance-related suggested bids can be really expensive.

Suggested-Bid Deciding your budget – How much does Google Adwords cost?

One of the benefits of online advertising is that you can decide and control how much you would like to invest. You can not only choose your daily budget, it is also possible to manage the bid for each of the keywords. So the answer to how much does Google Adwords cost, can be modified as how much would you like to spend?

How much does Google Adwords cost? = How much should we be investing?

To start we always recommend starting with a budget of at least 500 Euros/month, and run it for three months in order to collect data. Depending on the cost per click of your industry it might be recommended to increase the initial budget. Once we have enough data the budget will depend on many factors:

  • Industry and Target Market

As mentioned previously, depending on the industry in which you operate,as well as your target market, the cost per click can vary substantially from just cents to quite a few Euros.

Also, keywords with higher search volume are normally more expensive than specific keywords with less search volume. However, sometimes a more specific keyword can bring you to a more targeted audience. Depending on your marketing objectives, your budget, and the chosen KPIs, the chosen keywords can differ completely.

  • Conversion Rate

Depending on the chosen goal, it is important to take into consideration the conversion rate of your website. How many users perform a purchase, send a quote request, subscribe to your newsletter, download a form, etc.

  • Average Lifetime Value and Average Purchase Value

If you run an e-commerce site where you sell jackets with an average purchase value of 200 Euros (net profit of 150 Euros) you will be able to invest in a higher cost per click than if you sell t-shirts with an average purchase value of 50 Euros (net profit of 30 Euros).

However, if every new user buys around 6 t-shirts per year and keeps loyal to the brand for three years, this will mean a user’s lifetime value of 900 Euros (net profit 540 Euros) . If only two purchases are made by new users during 5 years on the jacket e-commerce site, will mean a lifetime value of 400 Euros (net profit 300 Euros). This will mean that we can invest more on the t-shirt site to acquire a new client.

If you don’t have enough information regarding the lifetime value of your users yet, you can take into consideration, for now, the average purchase value in order to make your decision.


In conclusion, your Google Adwords cost is relative to your:

  • Industry
  • target market
  • business goals
  • conversion rate
  • average purchase value / average user lifetime value

And one of the most important factors it is also how your campaigns are managed. Let us set up and manage your Adwords Campaigns for you. Benefit now! Contact Us Today – 01-8809117

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