In this article, Google Ads Cost Estimate, I’ll show you a clever cost system from Google Ads, where you are rewarded with a significant discount on your cost per click (CPC) if you follow a few concepts.

However, on the flip side, if you don’t get this right, you can be penalized and pay more than your competition. Continue reading to have a better grasp of how you can lower your CPC and avoid the pitfalls of paying more than you can bid. 

 

Watch the video version of this article below:

How Google Ads cost estimate works

If you can acquire customers at a price where you have a generous ROI, it’s like an ATM machine that gives you cash on demand. For every dollar you put in you can consistently count on x dollars coming back to you. You’ll want to scale it as large as you possibly can.  

What is that X rate of return? Is it 3x, 5x, 10x? That number varies but you want your ROI as high as possible and you want it consistent so that means you’re going to have to manage your campaign closely to get the highest X factor or ROI possible.  

Here are the components that come into play when determining your Google Ads cost estimate:

 

Factors affecting your Google Ads cost

Expected click-through rate (CTR)

The first item on the list that affects your Google ads estimated costs is your expected click-through rate (CTR).  

This determines how likely someone is to click your ad when they see it. Remember, the expected click-through rate is different from your click-through rate.  

In your expected click-through rate, Google evaluates how well your ads perform based on relevancy. Relevancy is very important from beginning to the end of your campaign. Google assigns you an expected click-through rate that will affect your ad campaigns.

 

Quality score

The quality score is calculated on a scale from 1 to 10 and is made up of expected click-through rate, ad relevance, and landing page experience.

Google wants to protect its platform and will reward advertisers who do a good job, while penalizing those who do not.

On a scale of 1-10 the benchmark is 5. That’s the number you want to aim for and maintain a minimum. 

If your score is higher than 5, then you’ll see your cost per click reduces. Like for example, with 6 you get a 16% discount and at 10 50%.         

And on the other hand, a poor quality score can really cost you money. Just one point below at a 4, your CPC’s can increase by 25% and at a 1, your CPC pricing can be up to 400% more than your competition.

Let’s have an example to explain this further. If your budget is $10,000 per month and your competitor is also $10,000 per month for the same audience, and you’re average keyword price is $12, you have a 10 for quality score and your competitor has a 1, that means you will probably get 1,666 clicks and he only gets 208 clicks for the same $10,000 investment.

See what a massive difference that makes in your Google Ads cost estimate? Huge!

 

Ad relevance

Your headlines, descriptions, and ad groups need to be related to the keyword being searched. Thus, planning your headlines and descriptions being relevant to the keyword is important. 

Relevancy is highlighted here again. You need to be consistent in terms of relevancy from your keyword term to the ad title, ad description, and landing page.   

Think of it as a journey. You are guiding your customers through where every step of the way they see what they are looking for, they know they are in the right place, and they will likely have more faith and confidence in Google to continue using the platform. And in return, Google is willing to reward you for that.

 

Landing page experience

The landing page is one of the places that I see a lot of mistakes made that costs Google advertisers money and poor quality scores.

Here are some things to keep in mind:

• Your offer should be unique.
• Your call-to-action (CTA) is clear.
• You must have a fast loading site. I suggest you test our site with Google site speed’s developer tool. It’s free and will give you an instant score. 3 seconds is ideal, 1 second load time is even better.
• Your terms and privacy policy should be in the footer. If you do not have one you can usually but a template for just a few bucks. 
• Your website should be mobile-friendly. Over 80% to 90% of clicks coming in is through mobile. 
• You should have an easy, simple website navigation where visitors can find what they need.

Here is an example of a landing page template that we use in our campaigns:

 

This template is one of our highest converting landing pages. If you need ideas for a good Google ads landing page, you’re welcome to copy this. If you want to get a copy of the landing page template, feel free to contact us anytime.

 

Conclusion

When running your ads on Google, you cannot do it without money. Thus, we must wisely allot our ad budget and maintain the ad costs at a minimum. With the tips I have laid down here on Google Ads cost estimate, you can easily work on your budget by doing good on your keyword research, keeping consistent relevancy of your target keywords from your ads to your landing page experience, and developing your website to perform better for your users. Once you have achieved all that, you can conduct a quick audit of your budget to see how well you perform based on your estimated ad costs.