Contributed by Jason Alleger
Generally speaking, we’re a money-conscious society. That statement is as true in marketing as it is in shopping for new shoes. We always want to know what something is going to cost us. And if you’ve ever tried to find out the cost of placing an ad on Google search, you may have ended up with a handful of aspirin and an icepack, because the the answer isn’t so simple. That’s where I come in—to help answer the age-old question, “How much does it cost my company if someone clicks on my search ad in Google?”
And the answer is . . . well, it depends. You didn’t expect the mysteries of the universe to be revealed all at once, did you? Stick with me for a minute and I’ll explain.
The price tag for Google search ads is based on industry/keyword categories. The most expensive category on Google is for insurance, which costs on average $54.91 per click. Yes that’s right, if you search “auto insurance price quotes” and click on an ad, you just cost someone $55. The next highest categories are mortgage ($47.12/click), attorney ($47.07/click) and loans ($44.28/click).
But don’t worry, most searches cost significantly less. In fact, if you have a well-built search campaign you can expect to pay around $1 to $2 per click. Advertising experts actually place bids on keywords that they predict will be typed in. An average company typically targets 50,000 keywords or more.
Ads are measured based on their click-through rate (CTR), which measures the average amount of times an ad is clicked, versus how many times it is seen. The average ad is clicked about 2% of the time. This may seem low, but considering that Americans conduct more than 18 billion searches per month, that’s a lot of clicked-on ads.
But do ads work? Yes! You wouldn’t click on an ad if it wasn’t what you were looking for.
Once you click on an ad, advertisers can see what pages you visit on their site, how long you stay there and if you buy anything. Both parties win in the exchange – consumers get their goods, and advertisers get relevant traffic to their site.
So the next time you do a search on Google, ponder on the majesty of Google’s wizardry to match your exact keyword query with the perfect ad. Then if you want to charge a company up to $55—click on it.
To help fuel your guilt the next time you search, below are the 20 most expensive categories on Google.
Infographic Source: TechCrunch.com