Google Ads: costs, operations and ROI analysis

We explain how Google Ads works, discuss potential costs, and demonstrate how to evaluate its profitability through Return on Investment (ROI) calculations.

Google Ads - Cost, Operations and ROI Analysis

If you’re running a business and considering diving into the online advertising world, Google Ads is likely on your radar. It’s powerful, versatile, and with over 3.5 billion searches daily on Google, it’s a way to ensure your product or service doesn’t go unnoticed.

But you might be asking, “How does Google Ads work?”, “What should I expect to pay?” or “How do I know if it’s worth it?” Let’s break it down for you.

The Mechanism Behind Google Ads

Google Ads is a pay-per-click (PPC) advertising platform, which means you only pay when someone clicks on your ad. Sounds neat, huh? It’s designed around keywords – words or phrases that users type into Google when looking for something. As an advertiser, you bid on these keywords relevant to your business.

When a user types a search query, Google performs an auction behind the scenes. The advertisers who bid the highest for that keyword and have a high-quality score (a metric Google uses to measure the quality of your ads) are placed in the coveted top spots of the search results.

What’s The Price Tag?

Now, onto the million-dollar question – what does all this cost?

The answer isn’t so straightforward, unfortunately. The cost of Google Ads varies....

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