I regularly set up AdWords campaigns for new advertisers and one of the most frequently asked questions is “how much will the clicks cost”. Read on to discover how you can find out.
How is the AdWords Cost Per Click Calculated?
AdWords runs via an Auction system. The fab infographic below from WordStream shows how it works.
What factors impact your Cost Per Click?
Looking at it simply, some of the factors that impact the Cost Per Click are:
- The position of your ad (which relates to Ad Rank)
- The maximum amount that you are prepared to pay per click (in AdWords speak this is your Maximum Cost Per Click bid)
- The amount that the other advertisers are prepared to pay per click (their Max CPC bid)
- The quality of your ad; a quality ad is tightly focused on one topic and is directed to a quality landing page. Ad quality is measured by the Quality Score of each keyword. Ads with a high quality score are rewarded by paying a lower Cost Per Click.
How do the Ad Positions Work?
In the image above, the top ad (Hawthorn Plumbers – $0 Call Out Fee Today) is in Position 1 and the ad at the top of the right hand column (Hawthorn Plumber, charged by the job, not by the hour) is in Position 4.
Get an idea of the Cost Per Click using the Keyword Planner
Google’s Keyword Planner gives an indication of the Average Cost Per click for each keyword, based on the campaign settings (location, network etc) that you selected.
Keep in mind though that this is an average of all ad positions and the Cost Per Click can vary greatly for ads in Position 1 compared to ads in Position 8.
How can you Find out the Real Cost Per Click for using AdWords to Promote Your Products or Services?
In my opinion, if you’d like to see if AdWords will work for your business, and to find out how approximately how much your clicks will cost, the best option is to run a trial campaign.
You could set this up yourself, allocating a specified amount of advertising budget for the trial campaign.
By the end of the trial you should have information about how much on average a click costs for each keyword, which will related to the position that your ad was shown in. You should also have an indication of how effectively the AdWords traffic generated results for your business, such as online sales or enquiries about your services.
Need help running an AdWords Trial?
If you’d prefer not to spend hours online doing the training that’s needed to set up and maximise the returns from your campaign, I offer a fixed price AdWords Trial for $297 + GST. The trial includes $100 of free advertising spend and I’ll run your ads for up to month to help you figure if AdWords is an effective way to market your business in the longer term.
“Image courtesy of ddpavumba / FreeDigitalPhotos.net”.