Google Search campaigns are designed to benefit every imaginable business on earth. When I say ‘every imaginable’, I obviously include the ‘scale of businesses’. This means that you need not have a very high budget to enjoy the benefits of search advertising. However, the cost logistics need to be understood. It is a fact truer than the North Star that Google exists to make human lives easier. Hence, it is safe to assume that the workings of cost calculation on AdWords are fairly simple. There is nothing to worry about advertiser.
Search engine advertising follows the pay per click model. It is fair and massively avoids any possible confusions. The question is, how is this cost calculated? A couple of factors come into play in calculating the cost of what we actually pay for every click received by us. These are the rank of the advert among the search engine results and the quality score of the campaign. The actual CPC is equal to the ad rank divided by the quality score, the result of which is added to $0.01 which is equal to around 0.61 rupees (this value fluctuates according to the changes in the exchange rate).
The advertiser is the master of the magnitude of his financial dues on AdWords. The max CPC bid lets us specify how much we are willing to shell out at most. What he really pays is almost always less than the max CPC figure. Also, the advertiser has the authority to fix a daily expenditure cap per day. This is the Daily Budget. As a free incentive however Google makes way for 20% more clicks than what the ‘Daily Budget’ allows for. This is Google’s own way of compensating for the days when ads aren’t fortunately positioned to do well.
The advertiser is most welcome to change his bids as and when he wants to. What the advertiser pays anyway goes down when the quality score looks up. This is because what we pay is a product of both quality score and the amount bid. Hence naturally, when one value goes up, the other automatically goes down. The quality score is good only when the ads are very relevant in Google’s eyes.
However, keeping a leash on the required expenditure can be quite a task.
- Knowing what we want will enable us to channelise our resources in the right direction. The spending with be focussed and well-planned.
- Keywords should be deeply researched. This ensures better efforts on the advertiser’s part to increase his ad’s relevance.
- A combination of match types will let the advertiser get the best of both worlds. That way, he allows himself to appear for a variety of searches in one hand and checks the phenomena of receiving redundant clicks on the other.
- Having a negative keywords’ list does the same for us.
- We must remember that the top-most position does not come cheap and its also not the most important thing because more often than not, the second, third or even fourth positions are just as effective.
- Advertisers! Keep testing and optimizing
You can avail the services of the leading Google Search Advertising experts by writing to us on firstname.lastname@example.org or by calling us on 09038015241.
Author Info :Suchandra Banerjee is an English grad pursuing her masters at present. She is currently interning at releaseMyAd and is thoroughly enjoying her time here given that the work is very exciting and edifying. She hopes to put to use the knowledge she is gaining here later on in her professional life. She is absolutely crazy about travelling and loves to read novels when she isn’t writing for us. She hopes to do at least one-fifth of what her bucket list contains. We wish her all the best with that.