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How Much Does Google Ads Cost? Google Ads Pricing (2021)

by | Dec 25, 2020 | PPC

Statistics show that 95% of business owners use Google Adwords or any type of PPC ads for three reasons:

  1. Increased Drive on website visits
  2. Earn Customers via Phone Calls
  3. Earn customers via website visit
  4. Increase Customers via direct website purchase.

Google PPC has simplified online internet advertising for business owners. All one has to do is create a Google Ad campaign and get started! As easy as it sounds, understanding Google Adwords pricing can be tricky and complicated. The constant new developments within Google ads make pricing factors complicated and confusing. 

When it comes to Google PPC packages, the following questions pop up in every business owners mind:

  1. Should I invest in Google Ads?
  2. What are the various PPC Packages available?
  3. How Much Do Google Adwords Cost in 2020?

The answer to your first question is a big yes!.

This blog post will help you solve all your Google Adwords pricing worries and help you decide whether or not investing in Google Ads is the correct choice for you.

Before talking about the Google Adwords Pricing structure in 2020, Let’s have a brief overview of what exactly is Google Adwords.


 Google Adwords: A Brief Overview

Google Adwords or Google PPC is the most convenient road for businesses aiming at internet advertising to reach out to a wider audience and create an impact in the digital world. Google Adwords is an online internet advertising platform curated by Google, which works by advertisers bidding on certain keywords that appear on the clickable ads in Google search results. 

The smart bidding feature, a significant aspect of Google PPC campaigns, is used for displaying the following types of Google Ads campaign:

  1. Search Networks Campaign :

These campaigns use text ads for attracting customers towards your products or services

  1. Display Network Campaigns:

The most prominent and common google ad campaign, where ads about your products and services all over the web.

  1. Shopping Ads or Product Listings:

Used by retailers for promoting their online inventory on a local or global level

  1. Video Campaign:

Display short video ads independently or via streaming them on youtube and through display networks.

  1. App Campaigns:

Promote your apps across all google networks, within other apps, mobile websites over the display network.


Google Adwords Pricing Model: 

Sadly, there is no specific price stated for every Google Ad You create. Instead, it all depends on your goals, budget, targeted keywords, Google’s smart bidding and your campaign type. 

The Google Adwords Pricing works on the Auction model. So once you select your campaign goals, type and state your budget to Google ,you have to bid via the auction model for the targeted keywords to appear on your Google AD.

As per the Google Adwords Pricing Model, the advertiser chooses the maximum bid amount willing to pay for a single click on your ad.

Google Ads gives you three payment options to choose from:

1.CPM: Cost Per Mile, the price you pay if your ad is displayed to a thousand people

2.CPE: Cost Per Participant is the total amount paid by you if anyone takes a predetermined action with your ad

3.CPC: The most commonly selected payment type, the google ads price you pay for each ad click.

Now once you choose your payment type, You can enter the auction.

How does the auction work? Simple, it is all about bidding for the right keywords. 

 The Google Adwords Auction works in the following way:

  1. For search queries, web users usually type out a keyword in the form of a single word or a phrase, that we call short tail or long-tail keywords respectively.
  2. Google uses its superpowers to check if the said query searched contains keywords that advertisers currently bid. When advertisers bid on only the keywords in the search query, the auction begins.

For entering the auction, every advertiser has to generate a list of keywords related to your business offers, services and products.

Organise the keywords into ad groups and campaigns for writing relevant PPC ads aiming to entice google users to click. Google then decides your AD ranks which tell you whether or not your ad is eligible to be placed in the paid results section.

A simplified way to understand the process:

AD Rank= CPC Bid x Quality Score.

Where, Quality score refers to your keywords, ads, landing pages quality

And, CPC Bid refers to the maximum amount you bid on specific keywords.

So if you get a High Ad Rank, then congratulations! You have aced the Google Adwords Pricing auction and, your ad will surely be displayed as a paid result. Google will then decide the price you pay for each ad click.


Google Ads Smart Bidding:

Google makes use of machine learning and offers you various smart bidding strategies for creating the perfect Google Ads Campaign. So smart biding uses a set of automated strategies working on machine learning for optimising conversion value in every auction ( Auction Time Bidding). So instead of guessing the keywords and keywords pricing all you have to do is, tell Google your ad goal, budget, industry type and viola! 

Google tells you the approximate bid on relative keywords which helps you determine your final bid amount. You can use this Google Adwords Pricing feature for:

  1. Increased website visibility
  2. Maximizing Conversions with a convenient budget
  3. Meeting Your Target ROAS
  4. Increasing conversions with your said CPA.



Keywords play a significant role in your Google Adwords pricing. 

With the pandemic hitting us hard and almost every business becoming digital and choosing Google as its prominent advertising station, expect PPC packages to increase its pricing. 

COVID-19 has had a drastic impact on Google Adwords Pricing and PPC Packages. It has also led to a sharp rise in keywords that were hardly used before. 

Google Adwords pricing, allows you to set an average daily budget for the campaigns you create. You have the authority to change the daily budget at any given time.

Avg. Daily Budget= The avg. amount spent each day/ the number of days in a month

Avg.Monthly charges= The avg. daily budge X The Avg. Number of days in a month.

For days when your campaign drives more traffic

Average daily budget X 2

Ensure to set a flebile advertising budget that works for your products and services. Set your Google Ads budget keeping in mind the type of campaign you aspire and your target ROIs.

Google lets you set a budget that works perfectly well for your business. 

So even if you have an upcoming or a small business, you can easily draw up a budget for Google Adwords.


How much should my daily PPC Package Pricing look like in 2021?

As you know keyword pricing plays an important role in determining the cost of your Google Ads Campaign, hence it is advisable to ask your chosen PPC Agency regarding the total number of selected keywords for your PPC campaign. You must also check the said CPC on those keywords and include the agency charges for managing your PPC campaigns.

The cost of PPC packages depends upon your:

  1. AD budget
  2. The number of campaigns
  3. The number of Keywords

 It is imperative for you to opt for PPC packages that are budget-friendly. You can have a flexible budget, however avoid being over-flexible for your Google Ads Budget.

Your PPC Package can include one or more than one campaigns.

For calculating your monthly PPC Budget, calculate the breakdown of the daily budgets for every campaign and assign funds depending upon the importance of each campaign.

COVID-19 will continue to impact PPC Package and Google Adwords Pricing in 2021. 2021 will see numerous businesses shift their domain online and use Google Adwords as their mainstream advertising partner or their PPC partner.   

 Businesses transitioning into the digital world will lead to an increase in competition directly impacting the Google ads bidding scenario and keyword pricing competition as well.

2021 will surely see a considerable change in terms of Google Ads Pricing, PPC Packages pricing, keyword competition & pricing, smart bidding scenario and the Google Adwords in general. It is going to be a truly different and pandemic market-oriented year.


It is with great pride and utmost responsibility I humbly accept being known as Mumbai’s visionary creator of successful SEO values. I have professional expertise in developing target rich SEO campaigns, Google Adwords, Facebook Marketing, Google analytics tactics. I also possess a gamut of associated technical know-how. As the Co-founder and director of Mumbai’s best SEO company, GBIM Technologies I have the resources and capabilities for optimizing online businesses to accomplish target goals. Over five years of focused learning and experience in SEO and digital marketing has honed my skills, improving organic search engine rankings for online businesses. I achieve set targets with a unique and creative approach based on research and analysis.
Dharmesh Patel

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