How much does Google AdWords cost?

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Google AdWords is Google's advertising system in which advertisers bid on certain keywords in order for their clickable ads to appear in Google's search results. Since advertisers have to pay for these clicks, this is how Google makes money from search.

How much does Google Ads cost?"

It's a reasonable question, and one we hear all the time, especially from newcomers to paid search. After all, those new to PPC are probably most interested in how much they'll be expected to shell out to advertise on Google, and whether they can even afford it!

Unfortunately, there's no easy, one-size-fits-all answer. The most common (and infuriating) answer is, "It depends."

The cost of Google Ads (formerly known as Google AdWords) depends on several variables. In this post, I'll explain how these variables will impact your ad spend, and demystify the concepts you'll need to understand in order to set a realistic budget for your ad campaigns (and determine if you should use Google Ads at all).

Here's a high-level, TL;DR preview of what you'll learn in more detail in this guide:

    Google Ads is based on an auction system that rewards businesses who have high-quality ad campaigns with lower costs and better ad placement.
    You can exercise tight control over how your Google Ads budget is spent using tactics like ad scheduling, geotargeting, and device targeting.
    The average cost per click in Google Ads is between $1 and $2 on the search network. The average CPC on the Display Network is under $1.
    The most expensive keywords in Google Ads and Bing Ads cost $50 or more per click. These are generally highly competitive keywords in industries that have high customer lifetime values, like law and insurance.
    Giant retailers can spend up to $50 million per year on paid search in Google Ads.
    The average small business using Google Ads spends between $9,000 and $10,000 per month on their Google paid search campaigns. That's $100,000 to $120,000 per year. 

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