Why You Should Be Running Google Ads & How Much to Spend8 min read

If done right, Google Ads is an amazing platform that delivers a huge profit. Find out how you can use this platform to grow your business.
Reading Time: 6 minutes

If done right, Google Ads is an amazing platform that delivers a huge profit. If you do it wrong, it’s going to eat a big chunk of your budget pie. Because of the risks involved, maybe you’re asking yourself why you should be running Google Ads.

This blog will answer this question, including how much you need to spend on Google Ads.

How much does Google Ads cost? Well, it really depends on a lot of factors. Its pricing is not the same as the price tag attached to every product in the grocery store. There is more to it than what meets the eye.

Here is a quick take-away about its pricing:

  •  Google Ads uses an auction system, meaning it rewards companies with high-quality ads with lower costs and better ad placement.
  • You are in control of how much you will spend through ad scheduling, geotargeting, and device targeting.
  • The average cost per click (CPC) on the Search Network is between $1 and $2. On the Display Network, the average CPC is under $1.
  • The most expensive keywords in Google Ads cost $50 or more per click. These keywords are used in very competitive industries with high customer lifetime values, such as law and insurance.
  • In general, small to mid-size companies spend $9,000 to $10,000 per month, roughly around $100,000 to $120,000 per year. However, this doesn’t mean that you need to spend that much. We’ll explain more.

The image below shows how Google determines how much you need to pay per click:

Google Ads pricing depends on several factors.
Google Ads pricing depends on several factors.

                Image Source: Wordstream


Ad Rank refers to your position in the Google Search page over other ads, or whether your ads will show up at all. Your Ad Rank is calculated based on several factors, including your bid amount, auction time, ad quality, and the overall impact of ad extensions.

On the other hand, Quality Score is the perceived quality rating of your ad based on several guidelines. If Google determines that your ad is high-quality, you can get lower prices and better ad ranking. 

Is there a chance that your Google Ads spending can exceed your average daily budget?

The answer is yes.

When Google detects that there is a higher volume of traffic, it will show up your ads more often to maximize your earning potential. When this happens, your total daily cost for PPC might double on that particular day. If you pay per conversion, it can be higher than 2 times your daily cost.

The maximum amount that Google will charge you for any ad campaign in a day is computed by multiplying your average daily budget by the average number of days in a month, or 30.4. 

Why Google Ads?

In digital marketing, you have a plethora of options to reach potential customers. There is Facebook, Instagram, Twitter, Pinterest, and many search engines too. Despite the competition, Google Ads remain strong. To prove this point, 63% of online users in 2019 said that they clicked on a Google Ad. Here is how Google performs over other search engines as of September, 2019:

Google ranks first among all the search engines with 81.5% user share.
Google ranks first among all the search engines with 81.5% user share.

              Image Source: Reliablesoft.net

But how do you use Google Ads? To get started, you need to have a Google account. Creating an account is easy; just follow the steps and supply the information required on the sign-up page.

After successfully creating an account, you need to learn these steps:

1.    Understand Keywords. Keywords are the backbones of a lucrative ad campaign. As the name implies, keywords are words or phrases that searchers enter on Google when looking for a specific product, services, or concept. Using the right keywords is crucial so that your ads will appear in the right place and time.

2.    Write Compelling Ads: Writing persuasive text ads is not easy. If you’re not a skilled copywriter, hire an expert to do the job.

3.    Optimize Your Ads. Don’t leave your campaigns alone after publishing them. Marketing experts suggest that optimizing your ads prevents it from being outdated and irrelevant. There are many steps that you can take to optimize your ads.

4.    Choose the Right Schedule. Analyze when your ad gets the most engagements. Schedule your ads so that it will appear when the majority of your target market is online. As the saying goes, “Fish when the fish are feeding.”

5.    Monitor the Performance of Your Ad. Always check how your ads perform. If your ads are not showing, it means that Google doesn’t find your ads relevant. Improving the quality of your ads can tremendously boost their relevance and overall performance.

The following are the concepts and services that you can achieve through Ads Services:

Search Network

The Search Network is part of the Google Network; a system comprising websites and apps where your ads can appear. When you advertise on the Search Network, your ads can appear next to the search results, on Google sites like Maps, Images, and Shopping, as well as on Google search partners.

Display Network

When you advertise on the Display Network, your ads will show on a variety of channels, including websites, YouTube videos, Gmail, and mobile devices and apps. Display Network relies heavily on visuals that are appealing to the audience.

Google Shopping

If you’re a retailer, you can benefit more from Google Shopping. In this campaign, people will see what you’re selling on the Google search results page or under the shopping tab.

Video Campaigns

Using video ads to engage customers. Video ads appear on YouTube and other partner sites.

Mobile App Campaign

Promoting mobile apps to increase the number of downloads and engagements.

An example of Google Ads Dashboard
An example of Google Ads Dashboard

Google Ads Dashboard is a monitoring platform that summarizes the key performance indicators (KPI) of Search Engine Advertising (SEA) campaigns. The results have a straightforward format so that even novice advertisers can easily interpret them.

Learning how to read the data on the dashboard is crucial. It will allow you to create strategies to optimize your ad campaigns better. Google Ads Dashboard shows you real-time results. You can export the data from the dashboard to a spreadsheet if you need hard copy reports.

Many digital marketing agencies offer a variety of packages based on their clients’ goals, target market, and budget. These packages refer to services and technology that marketing experts provide to get the best revenue for their client’s ad campaign.

SMRT Digital provides our clients with Google Ads packages that suit their needs. If you want to take advantage of what it can do for your business, we can help you maximize your budget to achieve the best results possible.

Buyer, beware…

Some agencies will not only charge you a monthly retainer fee, but some also get kickbacks from Google as a commission based on the amount of advertising dollars they put through the platform each month. We aren’t saying they won’t get you great results, but they are incentivized to spend more of your budget with Google. 

Other agencies just charge a flat monthly fee and provide all services included in that package.

At SMR Digital, we are very transparent about how much you will be paying us. You can find out more about our packages on our pricing page. As you can see, our pricing is clear and transparent, and all inclusive. And we don’t receive commission from any ad platform for spending money with them.


Many companies rely on effective Google Ads campaigns to promote their products and services. There is no reason why you should not jump on the bandwagon just like what others are doing.

Whatever type of campaign you want to try, SMRT Digital will be glad to assist you. Firstly, we will determine your business needs and planning for the best type of campaign that works for you. Then, we will do the actual copywriting and design tasks that effectively represent your product. Lastly, we will use all of our resources and expertise to run your ads and optimize their performance.

Do you want to know more why you should be running Google Ads and how much to spend on it? Call us now and we will be glad to discuss them over a cup of coffee. 



Book a Strategy Session