Google contextual advertising in Portugal

Portugal is a developed country in Southern Europe with a population of 10.3 million people. The GDP per capita here is 36 thousand dollars (39th place in the world). The structure of the Portuguese economy is 22% industry and 75% service sector. Due to the geographical location and climate, a huge share of the service sector is tourism. In 2019, 22.8 million tourists visited Portugal.

All this makes the country very promising for doing business, and launching contextual advertising in Portugal, with the right approach to setting up and a reasonable choice of niche, is guaranteed to bring good income.

What to consider when setting up contextual advertising in Portugal?

Before you start setting up Google Ads for Portugal, as well as for other locations, it is important to take into account geographical, cultural, tourist and other features. Let’s deal with the most important of them for setting up a Google advertising account.

Geo targeting

Below is a population density map of Portugal:

The map clearly shows that the population lives along the coast, and the density is concentrated around Porto and Lisbon. It is also important to note that in addition to being the largest in terms of population in Portugal, these agglomerations are also global cities and attract thousands of wealthy people from all over the world every year.

It is these regions that make sense to target by location if you are looking for a paying target audience for your Google Ads campaign.

Language targeting

Portuguese is the official language of the country. However, tens of millions of tourists visit Portugal every year, 25% of whom are Spanish citizens. In addition, it is worth considering visitors from South and Central America, among whom there is also a large proportion of those who speak Spanish.

This is why setting up Google AdWords in Portugal requires at least two languages. It is important to note that for a PPC specialist, running a multilingual project in terms of labor costs corresponds to setting up two separate advertising campaigns. This requires collecting different semantics, using different ad texts and landing pages on the site. Therefore, such work will cost more for the customer.

Important! Not all niches will generate the highest profits from Spanish-speaking clients. Here you need to study the statistics for a specific project, to identify which audience brings more profit. It may well be that, along with Portuguese, you should choose English as a second language for your marketing campaigns.

High CPC

Portugal, as an EU country with a high GDP per capita and a favorable business climate, is a highly competitive market. As a result, the cost per click on Google Ads is above average here. In order to optimize the spending of the advertising budget, it is very important to use only the most effective advertising tools, correctly work out negative keywords and use web analytics in your work.

The following advertising tools perform best:

1. Search ads. Here you need to focus on requests with a pronounced need, as well as geo-referenced keywords. They will give the main number of conversions in advertising campaigns. For the most marginal products or services, general and informational queries can be used, but in most niches, their use with such an expensive click will be ineffective. Advertising campaigns based on competitors’ requests can also work well – they allow you to get a client at the lower stages of the sales funnel, when he is still exploring the market.
2. Performance Max. New type of campaigns in the list of Google Ads tools. It stands out for its fully automated setup. The user only needs to upload text materials, videos and pictures, and the system will do the rest. With the right choice of niche, Performance Max guarantees a cheaper conversion compared to other advertising platforms. In addition, such campaigns allow you to cover all possible types of placements (Product Ads, Display Networks, YouTube, etc.).
3. Multilevel remarketing. Especially effective at high cost per click in search. It allows you to work with those customers who visited your site, but did not order a product or service. They can show ads with a reminder of your company or offer a discount on a product they like. The tool involves working with different portraits of the target audience at different stages of the sales funnel. At the same time, the tool shows the highest efficiency.

Cost of contextual advertising Google Ads for Portugal

The price of contextual advertising in Portugal is influenced by the budget allocated for traffic from Google AdWords, as well as the cost of the work of a contextologist or marketing agency.

At the same time, the cost of setting up a campaign is influenced by how many categories of goods (for online stores) or services will be taken into work, how many portraits of the target audience will be involved, how many types of advertising campaigns will be set up.

It also matters how many languages your ads will be configured in. Each new language in a project is equivalent to supporting and maintaining a separate project in terms of team effort.

The cost of a click on Google Ads for Portugal depends on the specific niche in which your company operates. We have collected examples with the cost of going to the site for popular topics so that you can evaluate the overall competition in the market:

• appliance repair – $1.59;
• Plumbing services – $2.16;
• manicure services – $0.57;
• Dry cleaning of upholstered furniture – $1.17;
• permanent makeup – $0.66;
• dental services – $0.91;
• sale of washing machines – $0.65;
• Korean cosmetics – $0.77;
• pet food – $0.59;
• plant fertilizer – $0.72.

Attention! Since the cost per click is influenced by many different parameters, the final actual cost per click in your project may differ by +-40% from the predicted figures.

If you want to set up your own ads, use the videos on our YouTube channel and the blog on the site to learn. If you need a consultation with a contextologist with an analysis of the project and all current indicators with growth points, fill out an application on the website. We will announce the current cost and agree on the time of the consultation.

Peculiarities of online advertising market in Portugal

Portugal has a fairly high level of Internet penetration. Of the country’s total population of 10.3 million people, 8.58 million are active Internet users (corresponding to 84.2% of all residents of the country). The average time these users spent online is 7 hours and 20 minutes.

At the same time, 92.1% of local residents have an account on YouTube video hosting and regularly watch videos on this platform. The TOP 5 most popular sites also include Google.com and Facebook.com.

The share of online shopping is growing every year in the country. In 2021, 5.11 million citizens bought something online, which is 19.5% more than in 2020. This makes the e-commerce niche in Portugal very promising.

The most popular search engine in Portugal is Google. It accounts for 94.75% of all search traffic from this country. It must be admitted that the most popular search engine in the world is also a monopoly in Portugal.

Lagging far behind Google is its direct competitor, Bing, which is used by only 4.21% of Portuguese. Third position is occupied by Yahoo!, which was chosen by 0.39% of users living in Portugal. The remaining search engines are used by an even smaller percentage of local residents.