How to calculate the cost of Google Ads and find ways to get money for Google AdWords?


What is the cost of Google Ads?


Keywords could be extremely cheap or grossly expensive depending on the industry. For example, targeting high-volume keywords could be paying a pretty penny for tons of monthly searches.



Depending on the industry, the keywords could cost from 19 cents to over five bucks for clicks. Also, there could be variations between keyword cost and average cost-per-click.

How Google AdWords work? How much do the ads cost? How PPC budget is allocated?

How much AdWords Advertising would cost depends on what you are advertising?


If you research individual keywords, you can get some deeper insight into the cost of global or small business AdWords Advertising.


Learn to calculate AdWords budget with keywords


It is difficult to determine a budget without calculating the actual budget. So, you need to start with scratch. Open up SEMrush and start searching keywords data.

Prepare a list of potential keywords by brainstorming or using a keyword planner. Here we won’t go into the details of keywords research to save time. The important point is to get deep data of potential keywords.

Google AdWords 2019: A complete guide for beginners

SEMrush would give important data on each keyword and also you will get keywords related to your search. The data would include the following things.


  1. Keyword
  2. Volume (number of searches per month)
  3. CPC (cost-per-click)


Now you need to do some mathematics. First of all, open a spreadsheet and note down the data on the sheet. You have keywords with important data on the spreadsheet. WordStream takes the average click-through-rate across all verticals on Google Ads to be 1.91%. But you can check the CTR of your industry.


The formula for calculating clicks per month

Image result for calculating clicks per month

keyword volume (multiple) average CTR = clicks per month


Now you have a near accurate number of clicks per month. If you multiply this number with the per-click-cost, you will get the figure you need investing for that specific keyword.

Could Google AdWords generate real estate leads? Should realtors use it?

Here’s the formula for calculating the monthly cost of clicks


clicks per month (multiple) cost per click = monthly cost of a keyword


Go on calculating the monthly average clicks and the monthly cost of keywords to find how much you need investing for targeting a specific keyword(s).


This exercise would give you a definite idea on the budget required for AdWords Advertising. Now you need arranging funds for running Google Ads.


How to get money for running Google Ads?


The objective of calculating the average cost of clicks on a keyword is to take total control of the PPC budget. You might have the fund to invest but it is advisable that you look for ways to save money or it would be better to say that to get more money for running Google Ads.


First Option: Reduce labor cost


Time is money hence time saved is money saved. In other words, you should pay only for the useful time that you can easily calculate with an easy formula.


For example, if you work for 10 hours a week, cutting the working time by half would certainly reduce the budget to half.


You work 10 hours a week and if you work 5 days a week then your daily labor is 2 hours. If your weekly salary is $500, the hourly working rate would be – weekly working rate (divided by) weekly working hours


Your hourly rate would be calculated to be 500/10 = 50


You get $50 for an hour. If you cut it by half, you save $250. It is your weekly saving that becomes $1000 in a month. So, you get $1000 to continue running Google Ads for next month.


The formula for calculating the hourly rate of a task


hourly rate (multiply) hours spend on a task = monthly labor charge of that task


The extra money saved by cutting your working hours without compromising on the quality of results can be used for investing in any other platform.

Google AdWords 2019: A complete guide for beginners

Second Option: Switch Over


When the objective is to save money, you shouldn’t buy time because time is money. For example, you get leads from a platform but the leads generated have little monetary value due to huge expense on that platform.


The trick is to analyze the conversion data to calculate the monetary value of a given platform.


For example, you spend $100 in email marketing and generate plenty of leads but did you ever analyzed whether the lead generated with email marketing convert or how many leads convert. If the profit is lower than $100 then it isn’t wise to spend time and money on this platform.


Here Google Analytics could prove to be a great tool for analyzing the monetary value of a platform. Or you can use a simple formula to calculate how profitable a platform is.


Total revenue generated by leads (divided by) the total number of leads


Also, consider the labor invested in lead generation. And if the labor and direct spend on a platform are greater than the average lead value of that platform then it is better to dump that platform and find one that gives a greater return on investment.


Third Option: Calculate Cost of Tools


When it comes to saving money, you should leave no stone unturned.


For AdWords Advertising, you need tools for keyword research, social scheduling, and monitoring tools. Here you can make a cut on the tools you can do without. But it is a matter of personal preference and convenience.


For example, Evernote premium would cost you a price and if you can do without it, you should try working without this tool. If you can save even $10, it is worth removing the tool from your toolbox.


Eliminate only non-essential tools that are providing little help in converting the leads.

Facebook ads VS Google AdWords: Should I invest on Facebook ads or Google AdWords or both the networks?

Start Small


Now you have an approximate cost to invest in Google Ads and ways to get funds for AdWords Advertising. You can go ahead and hit the online market but it is better to start small that is with minimum budget.

Image result for Start Small

For example, your average working cost on a keyword is calculated to be $100 but you are staring at $1000. You have 10x more the budget needed for running Google Ads. And more spending has more risks instead of opportunities.


Starting small leaves little room for errors


The biggest risk with Google Ads is losing money and if you are starting with $1000 you are likely to lose more. Doubling your return on investment is the norm for advertising on Google. If you are getting revenue from Google Ads, you can go on increasing the investment.


For example, you are generating 10 leads for a cost of $5. If it is affordable, you can continue with it and try doubling the return.

Why should small businesses start with Google AdWords?



It is difficult to explore Google AdWords without money and it is risky to invest a huge sum on this expensive platform. The road to success in Google AdWords Advertising is slippery and for this reason, going alone isn’t advisable. You should join hands with an experienced PPC company that can manage your AdWords account.


It is better to hire a senior Google Adwords Expert than wasting money on Google Ads. There are tons of factors to consider; lots of calculation to make and many tools to use. Let an expert handle your Google AdWords account and you remain free to reap the benefits of advertising on Google that is the largest search engine.

Media Challengers, led by Birendra Kumar, is the foremost SEO and PPC services company, specializing in implementing a comprehensive range of online marketing techniques to enhance business profitability. As a Google certified agency partner, we bring expertise in SEO (Search Engine Optimization) and PPC (Pay-Per-Click) strategies to drive successful digital campaigns.


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