How does Google determine the position and cost of a Google Ads ad?
Posted: Wed Dec 11, 2024 5:19 am
Google Ads ads are mainly CPC ads, meaning we pay for each click. The cost per click (price per click on a Google Ads ad) is set based on an ad auction. Companies interested in advertising for a specific keyword bid among themselves, declaring a maximum CPC rate.
An example of how Google will calculate how much Google Ads costs
If Company A sets its CPC bid to $5 and Company B sets it to $4, then Company A will appear higher in sponsored results (assuming the Ad Rank is similar).
The actual CPC cost of company A will be PLN 4.01.
The more people willing to display an ad, the higher the rates per click will be. Interestingly, this does not have to be related to the size and profitability of the business. Record rates, often reaching several dozen złoty per click, can be observed, for example, among roadside assistance, plumbers or cleaning companies. Of course, loans and insurance are also leading here. In the US, you have to pay up to several hundred USD for a click on an ad with the keyword " insurance ".
You can see your average cost per click in the keyword planner provided as part of the service. Unfortunately, to have full access to the data, you must have at least one active Google Ads campaign.
Other factors that affect ad ranking and positioning
Quality Score
The first Google ranking factor is quality score , which is a combination of landing page quality, expected click-through rate, and ad relevance. Google often highlights this factor, suggesting that it is the key factor in determining your click rate.
Expected Impact of Extensions and Other Ad Formats
To estimate the expected impact of extensions and other ad formats, relevance, expected click-through rates, and the visibility of extensions on the Google search results page are taken into account.
Google Ads Advertising - What Should Your Advertising Budget Be?
The daily and monthly budget will largely depend on the actual CPC and, of course, the capabilities of the company ordering the campaign, as well as the breadth of the market to which the advertising message is dedicated.
How much Google advertising costs depends on the client's budget. In the case of local businesses, effective campaigns can be run with a budget of a few hundred złoty per month .
A small Google Ads campaign budget may result in your ads being displayed too infrequently and, consequently, too few clicks to see any results.
The most important thing is ROI, or return on investment
Google strives to provide its customers with the best possible ROI ( Return Of Investment ). To this end, it provides a range of training materials, including video courses and articles with information on optimal campaign configuration, so that campaigns are created for the benefit of advertisers first and foremost.
Directly in the advertising account, the Google Ads system instructs via the Recommendations tab what the system considers appropriate in order to increase the effectiveness of the advertising campaign. In this tab, we will find, among other things, a proposal to increase advertising budgets or change the strategy. The system will also remind you about the configuration of conversions or inform you about errors in their configuration, suggest adding extensions to individual Google Ads campaigns, and also suggest new keywords.
Why is it worth hiring an agency to advertise on Google?
It is worth emphasizing that while registration itself is free , experience shows that without domain knowledge and without knowledge of advanced Google tools, campaigns simply will not be effective. It will also be difficult to obtain an optimal return on investment. That is why most companies use specialized agencies whose task is to obtain the best possible results from Google Ads campaigns.
If you do not have time to acquire theoretical and then practical knowledge in the field of configuration and optimization of Google Ads campaigns, I recommend using the help of Google Certified Partners . This status is obtained by the most active and best advertising agencies in Poland. Our agency can also boast the status of a Certified Partner , which is a confirmation of gaining specialist knowledge in the field of running and optimizing Google Ads campaigns. When choosing a company that will run your campaigns, it is worth paying attention to the fact of having the appropriate qualifications.
Are your Google Ads campaigns not generating profits?
Rely on the specialists from the KS Agency!
Contact us!
How to get additional advertising budget?
If you're just starting out with Google Ads (formerly AdWords), you can get a one-time coupon that allows you to get additional advertising budget, provided you meet Google's requirements.
Below you will find the current (July 2024) Google Ads promotions for new advertisers.
Google promotional offers for new users
Google promotional offers for new users
Ads advertising and positioning
Promotion of companies within the scope of internet marketing in search engines is not only sponsored links, but also positioning of pages . Positioning is a series of activities aimed at improving the position of the page in organic results for selected keywords. Both solutions have certain advantages and disadvantages. In one case, SEO will work better, and in another Google Ads. Very often, companies simultaneously decide on both activities, which complement each other. Currently, the Google system favors advertisers who, in addition to Google Ads, position their pages and take care of the user experience.
Positioning and Ads Advertising - Advantages and Disadvantages
Advantages Defects
Positioning Higher trust of potential customers in organic results than in Ads ads.
Relatively low cost of acquiring a click.
Long-lasting effects, even after ceasing positioning, traffic persists for many months. Long wait for results.
Difficulty in achieving success, constant changes in algorithms make positioning difficult.
Advertisement Ads Speed of achieving results.
Possibility of precise targeting by location, age, gender, etc.
Possibility of quick response to changing trends. Relatively high cost per click.
Once the budget is exhausted, traffic stops completely.
Google Ads Advertising Cost - Price List
Below we present three price packages for website homeowner database promotion on Google available at Agencja KS - one for campaigns in the search network, the second for the advertising network, and the third is a solution for people who want to run a comprehensive Google Ads campaign.
Search network
A package for companies that want to acquire new customers from a search engine
effective Google search campaigns
systematic expansion of advertising campaigns
already from
790 PLN
net/monthly
Get the details
I am ordering a free quote
×
The Search Network package includes:
configuration of search campaigns in the second month of cooperation,
development and expansion of campaigns with new ad groups, content, keywords, locations,
Conversion optimization – recommendations to improve your landing page,
Google Analytics 4 account analysis,
monthly reporting on the work performed and the results achieved,
developing quarterly goals and plans for the campaign,
a dedicated experienced account manager.
Suggested budget:
from 100 PLN per day
Google coupon
up to 1200 PLN for your budget Free
for new Google Ads accounts
Advertising network
A package for companies that want to build brand awareness
creative campaigns on the Google Display Network
free graphic creations once a quarter
already from
790 PLN
net/monthly
Get the details
I am ordering a free quote
×
The Advertising Network package includes:
configuration of an advertising campaign in the second month of cooperation,
development and expansion of keyword lists, competition lists, YouTube channels for selected words or panel recipients,
rate monitoring and conversion optimization,
Google Analytics 4 account analysis,
monthly reporting on the work performed and the results achieved,
developing quarterly goals and plans for the campaign,
free graphic creations once a quarter,
creating a remarketing campaign,
a dedicated experienced account manager.
Suggested budget:
from 100 PLN per day
Google coupon
up to 1200 PLN for your budget Free
for new Google Ads accounts
Premium Ads
A package for companies that want comprehensive advertising on Google
extensive advertising campaigns of various types
free graphic designs without limits
already from
1,190 PLN
net/monthly
Get the details
I am ordering a free quote
×
Premium Package includes:
configuration of Display Network campaigns, Search Network campaigns, Remarketing campaigns, Performance Max campaigns, local campaigns for business cards or YouTube campaigns in the second month of cooperation – depending on your needs,
development and expansion of keyword lists, competition lists, YouTube channels for selected words or panel recipients,
rate monitoring,
Conversion optimization – recommendations to improve your landing page,
Google Analytics 4 account analysis,
monthly reporting on the work performed and the results achieved,
developing quarterly goals and plans for the campaign,
monitoring user behavior on the site,
a dedicated experienced account manager.
Suggested budget:
from 150 PLN per day
Google coupon
up to 1200 PLN for your budget Free
for new Google Ads accounts
Our recommended minimum monthly budget is PLN 3,000 (PLN 100 per day).
SEO Price List
In the case of positioning, determining the price is not so easy, because it depends on several factors. We price each project individually, after prior consultation and analysis of the site. You can find sample price packages on our website in the tab: Positioning websites price list . Details of local offers, for cities such as Krakow , Warsaw , Wroclaw and Katowice , can be found in the price list in the special offer dedicated to local customers.
Summary
Google Ads is a great tool for generating sales that will work in almost any industry. Unfortunately, the more competitive the industry, the higher the rates per click will be and the harder it will be to get a good return on investment. An experienced SEO/SEM agency can help here , and run your Google Ads campaigns.
Remember to take care of the landing page. It should have a consistent and specific message, work quickly and smoothly. Perform your own test of the product purchase, registration or form submission, both on a computer and mobile device to catch errors or inconsistencies in the messages. Correct and clearly described steps leading to conversion will have a positive impact not only on the cost per click, but also on the conversion and user experience.
It is also important that the content in Google Ads ads is consistent with what is on the page to which we are redirecting from the ads. Also, do not forget to check whether people who come across your page for the first time will be able to navigate it.
An example of how Google will calculate how much Google Ads costs
If Company A sets its CPC bid to $5 and Company B sets it to $4, then Company A will appear higher in sponsored results (assuming the Ad Rank is similar).
The actual CPC cost of company A will be PLN 4.01.
The more people willing to display an ad, the higher the rates per click will be. Interestingly, this does not have to be related to the size and profitability of the business. Record rates, often reaching several dozen złoty per click, can be observed, for example, among roadside assistance, plumbers or cleaning companies. Of course, loans and insurance are also leading here. In the US, you have to pay up to several hundred USD for a click on an ad with the keyword " insurance ".
You can see your average cost per click in the keyword planner provided as part of the service. Unfortunately, to have full access to the data, you must have at least one active Google Ads campaign.
Other factors that affect ad ranking and positioning
Quality Score
The first Google ranking factor is quality score , which is a combination of landing page quality, expected click-through rate, and ad relevance. Google often highlights this factor, suggesting that it is the key factor in determining your click rate.
Expected Impact of Extensions and Other Ad Formats
To estimate the expected impact of extensions and other ad formats, relevance, expected click-through rates, and the visibility of extensions on the Google search results page are taken into account.
Google Ads Advertising - What Should Your Advertising Budget Be?
The daily and monthly budget will largely depend on the actual CPC and, of course, the capabilities of the company ordering the campaign, as well as the breadth of the market to which the advertising message is dedicated.
How much Google advertising costs depends on the client's budget. In the case of local businesses, effective campaigns can be run with a budget of a few hundred złoty per month .
A small Google Ads campaign budget may result in your ads being displayed too infrequently and, consequently, too few clicks to see any results.
The most important thing is ROI, or return on investment
Google strives to provide its customers with the best possible ROI ( Return Of Investment ). To this end, it provides a range of training materials, including video courses and articles with information on optimal campaign configuration, so that campaigns are created for the benefit of advertisers first and foremost.
Directly in the advertising account, the Google Ads system instructs via the Recommendations tab what the system considers appropriate in order to increase the effectiveness of the advertising campaign. In this tab, we will find, among other things, a proposal to increase advertising budgets or change the strategy. The system will also remind you about the configuration of conversions or inform you about errors in their configuration, suggest adding extensions to individual Google Ads campaigns, and also suggest new keywords.
Why is it worth hiring an agency to advertise on Google?
It is worth emphasizing that while registration itself is free , experience shows that without domain knowledge and without knowledge of advanced Google tools, campaigns simply will not be effective. It will also be difficult to obtain an optimal return on investment. That is why most companies use specialized agencies whose task is to obtain the best possible results from Google Ads campaigns.
If you do not have time to acquire theoretical and then practical knowledge in the field of configuration and optimization of Google Ads campaigns, I recommend using the help of Google Certified Partners . This status is obtained by the most active and best advertising agencies in Poland. Our agency can also boast the status of a Certified Partner , which is a confirmation of gaining specialist knowledge in the field of running and optimizing Google Ads campaigns. When choosing a company that will run your campaigns, it is worth paying attention to the fact of having the appropriate qualifications.
Are your Google Ads campaigns not generating profits?
Rely on the specialists from the KS Agency!
Contact us!
How to get additional advertising budget?
If you're just starting out with Google Ads (formerly AdWords), you can get a one-time coupon that allows you to get additional advertising budget, provided you meet Google's requirements.
Below you will find the current (July 2024) Google Ads promotions for new advertisers.
Google promotional offers for new users
Google promotional offers for new users
Ads advertising and positioning
Promotion of companies within the scope of internet marketing in search engines is not only sponsored links, but also positioning of pages . Positioning is a series of activities aimed at improving the position of the page in organic results for selected keywords. Both solutions have certain advantages and disadvantages. In one case, SEO will work better, and in another Google Ads. Very often, companies simultaneously decide on both activities, which complement each other. Currently, the Google system favors advertisers who, in addition to Google Ads, position their pages and take care of the user experience.
Positioning and Ads Advertising - Advantages and Disadvantages
Advantages Defects
Positioning Higher trust of potential customers in organic results than in Ads ads.
Relatively low cost of acquiring a click.
Long-lasting effects, even after ceasing positioning, traffic persists for many months. Long wait for results.
Difficulty in achieving success, constant changes in algorithms make positioning difficult.
Advertisement Ads Speed of achieving results.
Possibility of precise targeting by location, age, gender, etc.
Possibility of quick response to changing trends. Relatively high cost per click.
Once the budget is exhausted, traffic stops completely.
Google Ads Advertising Cost - Price List
Below we present three price packages for website homeowner database promotion on Google available at Agencja KS - one for campaigns in the search network, the second for the advertising network, and the third is a solution for people who want to run a comprehensive Google Ads campaign.
Search network
A package for companies that want to acquire new customers from a search engine
effective Google search campaigns
systematic expansion of advertising campaigns
already from
790 PLN
net/monthly
Get the details
I am ordering a free quote
×
The Search Network package includes:
configuration of search campaigns in the second month of cooperation,
development and expansion of campaigns with new ad groups, content, keywords, locations,
Conversion optimization – recommendations to improve your landing page,
Google Analytics 4 account analysis,
monthly reporting on the work performed and the results achieved,
developing quarterly goals and plans for the campaign,
a dedicated experienced account manager.
Suggested budget:
from 100 PLN per day
Google coupon
up to 1200 PLN for your budget Free
for new Google Ads accounts
Advertising network
A package for companies that want to build brand awareness
creative campaigns on the Google Display Network
free graphic creations once a quarter
already from
790 PLN
net/monthly
Get the details
I am ordering a free quote
×
The Advertising Network package includes:
configuration of an advertising campaign in the second month of cooperation,
development and expansion of keyword lists, competition lists, YouTube channels for selected words or panel recipients,
rate monitoring and conversion optimization,
Google Analytics 4 account analysis,
monthly reporting on the work performed and the results achieved,
developing quarterly goals and plans for the campaign,
free graphic creations once a quarter,
creating a remarketing campaign,
a dedicated experienced account manager.
Suggested budget:
from 100 PLN per day
Google coupon
up to 1200 PLN for your budget Free
for new Google Ads accounts
Premium Ads
A package for companies that want comprehensive advertising on Google
extensive advertising campaigns of various types
free graphic designs without limits
already from
1,190 PLN
net/monthly
Get the details
I am ordering a free quote
×
Premium Package includes:
configuration of Display Network campaigns, Search Network campaigns, Remarketing campaigns, Performance Max campaigns, local campaigns for business cards or YouTube campaigns in the second month of cooperation – depending on your needs,
development and expansion of keyword lists, competition lists, YouTube channels for selected words or panel recipients,
rate monitoring,
Conversion optimization – recommendations to improve your landing page,
Google Analytics 4 account analysis,
monthly reporting on the work performed and the results achieved,
developing quarterly goals and plans for the campaign,
monitoring user behavior on the site,
a dedicated experienced account manager.
Suggested budget:
from 150 PLN per day
Google coupon
up to 1200 PLN for your budget Free
for new Google Ads accounts
Our recommended minimum monthly budget is PLN 3,000 (PLN 100 per day).
SEO Price List
In the case of positioning, determining the price is not so easy, because it depends on several factors. We price each project individually, after prior consultation and analysis of the site. You can find sample price packages on our website in the tab: Positioning websites price list . Details of local offers, for cities such as Krakow , Warsaw , Wroclaw and Katowice , can be found in the price list in the special offer dedicated to local customers.
Summary
Google Ads is a great tool for generating sales that will work in almost any industry. Unfortunately, the more competitive the industry, the higher the rates per click will be and the harder it will be to get a good return on investment. An experienced SEO/SEM agency can help here , and run your Google Ads campaigns.
Remember to take care of the landing page. It should have a consistent and specific message, work quickly and smoothly. Perform your own test of the product purchase, registration or form submission, both on a computer and mobile device to catch errors or inconsistencies in the messages. Correct and clearly described steps leading to conversion will have a positive impact not only on the cost per click, but also on the conversion and user experience.
It is also important that the content in Google Ads ads is consistent with what is on the page to which we are redirecting from the ads. Also, do not forget to check whether people who come across your page for the first time will be able to navigate it.