Cost of setting up and maintaining contextual advertising
The price of contextual advertising consists of two parts – the cost of setting up and running a Google AdWords campaign and the amount that will have to be paid for traffic (transitions to the site) to the search engine.
Google AdWords cost per click – what affects it?
An important factor that determines the cost of Google advertising is the level of competition in the subject. For Ukraine, average prices:
- Low competition – from 3 UAH/click;
- Average – from 8 UAH/click;
- Moderate – 15 UAH/click;
- High – around 43 UAH/transition;
You can calculate how much a click costs in a specific area and the required budget using contextual advertising calculator.
Cost of setting up different Google AdWords tools
How much does it cost to set up and maintain Google contextual advertising in our company?
The cost of setting up contextual advertising cannot be small – after all, the financial result of your project depends heavily on the desire to work, test yourself, develop and look for new opportunities to improve your sales from people who set up an advertising campaign in Google Ads.
The amount of money you spend on Google traffic and how much you earn from each sale is directly proportional to the work of these people, brains and the presence of their hands from the right place. Since the AdWords system is built on the model of an auction (whoever pays more gets clicks), you can easily get target audience conversions by paying more than your competitors. But it is more economically feasible to act smarter and improve the quality of the content on the site so that it becomes more understandable and relevant to people. Competent collection of statistics and its analysis are also important, as well as numerous edits to the campaign that a professional agency makes every month. In this case, you will be able to get more sales by spending less money than your competitors.
What is the agency doing to reduce the cost of contextual advertising?
Often, many people ask themselves the question “Is it worth paying for setting up contextual advertising, if you can run it yourself?”. Let’s see how an agency can influence the cost of placing contextual advertising on Google, and can a person without proper experience take the same actions? All factors affecting the cost per click in contextual advertising can be divided into external and internal.
External factors include:
- Level of competition in a particular area (number of companies on the market, average bill);
- Google advertising algorithms (they are constantly changing);
- Competitor site conversions (selling site characteristics – how many sales they make per 1000 user sessions).
We cannot influence these factors, but if the agency has experienced contextologists, they will control the main sales indicators in the context of each product group, the cost of a targeted call, and website conversion. As a result, you can quickly change the promotion strategy and influence the final cost in the right direction.
Internal factors (they can and should be influenced):
- Quality advertising campaign settings;
- The quality of advertising (does the PPC specialist take into account feedback from the sales department when he makes adjustments to the cost of a click, changes in the collection of target audiences and the intensity of harassment ads, does he take into account the indirect sales received, does the agency have a quality control department);
- The quality of the statistics collected in the project by Google Analytics and the sales department in the company;
- Depth of data analysis;
- Management of bids and budgets at the level of individual categories of goods/services (for example, a client has five groups of goods in promotion at the same time. Within the first group, the average check is UAH 3,000; -differently);
- Managing the cost of a click separately within each type of tool (for example, the average cost per click for the field of dentistry in the Kyiv region in the search results is 12-15 UAH, in the CCM – 2.7 UAH);
- The chosen strategy for promoting the project (the project can have 2 strategies, the 1st one is for a wide audience and warming up the maximum number of potential customers, the 2nd strategy is for converting interested users into sales);
- The human factor. Imagine that every 10th task was not completed by a contractor employee, or completed, but with errors, not on time or partially. It is solved by the presence of an internal CRM system and a quality control department at the agency;
- Site conversions to sales, i.e. what % of people will buy a product per 1000 website visitors.
If your internal advertising department has experience and is ready to solve problems of this level, you can entrust it with contextual advertising. But if you see that these factors are not being worked out during the campaign, it is better to turn to professionals who will help you take your work to a new level and significantly improve sales and profits.
How can you influence the price of contextual advertising?
Many advertisers believe that all they have to do is pay the agency, and they can stop worrying about anything else and count the profit. But in the real world, this doesn’t work – after all, the secret to getting a low price for Google AdWords advertising is in the effective interaction of contextologists with the client. Thus, it is you who can influence the quality and success of the advertising campaign. It is important to assist the agency in regulating such factors:
- Joint setting of advertising goals to build a common strategy;
- Developing the strengths of the campaign to create the most selling ads;
- Prompt implementation of all changes on the site according to the terms of reference of contractors;
- For online stores – prompt feedback on the presence or absence of goods in stock in order not to spend money on advertising “idle”;
- General work on the number and quality of conversions – which ad groups had a lot of sales with high margins (they can increase the budget), and which ones did not pay off (in this case, you can consider disabling these ad groups).
Only in this way, working in tandem with professionals, your company can become a market leader and overtake all competitors.
Final advertising budget depends on several factors. It usually consists of a traffic budget and an agency commission. The amount of the commission varies depending on which advertising tools are involved in the campaign (search ads, remarketing, GMS, YouTube, trade announcements). The more tools and advertising platforms used, the more difficult the work, and, accordingly, the services cost more.
The Google Ads system works like an auction, so the advertiser who pays the most gets the most clicks. If there is high competition in your field, then the price of going to the site will not be small. However, the quality of the ad also affects the position in the search results and the cost of a click. Therefore, the task of the agency that sets up advertising is to do it as efficiently as possible in order to get the largest number of clicks for the client at the lowest price. The higher the competition in a particular topic, the more difficult it is to do this.
The cost depends on the region where ads and sites are shown (for Display Network). For example, for Kyiv, the average cost of a click in Google search will be around 8 hryvnias. The most expensive clicks are in the USA – there, in many topics, they cost from $1 and more.
Prices for clicking on Google AdWords contextual advertising are influenced by competition in a particular field of activity, relevance of the ad to the query user experience, quality score, use of extensions and add-ons, landing page relevance. In addition, for new accounts in the system or new campaigns, the rates may be slightly higher.