{"id":87755,"date":"2024-10-15T11:07:25","date_gmt":"2024-10-15T09:07:25","guid":{"rendered":"https:\/\/webraketen.space\/?p=87755"},"modified":"2024-12-16T08:51:50","modified_gmt":"2024-12-16T07:51:50","slug":"google-ads-costs","status":"publish","type":"post","link":"https:\/\/webraketen.space\/en\/google-ads-kosten\/","title":{"rendered":"Google Ads costs - Guide to successful budgeting"},"content":{"rendered":"

The costs for Google Ads<\/a> are quite easy to calculate, as billing is based on clicks. The click price fluctuates greatly, but in our experience it is between \u20ac0.50 and \u20ac4 for most campaigns. We have been able to run cheap campaigns at click prices of \u20ac0.03 - although cheap does not always equal successful. However, the Google Ads costs themselves are flexible and initial tests can be carried out even with small budgets.<\/strong><\/p>\n\n\n\n

These costs are incurred with Google Ads<\/h2>\n\n\n\n

The beauty of Google Ads: Only with one click <\/strong>costs are incurred by Google Ads when the user clicks on the ad. This is because behind the pricing for the CPC lies a Bidding process<\/strong>.<\/p>\n\n\n\n

But also Other factors<\/strong> such as the quality score, ad rank or time of day can influence the CPC.<\/p>\n\n\n\n

Nevertheless, in addition to the advertising budget, there are of course also indirect costs for the creation or optimization of campaigns.<\/p>\n\n\n\n

We take it step by step.<\/p>\n\n\n\n

Budget planning for Google Ads<\/span><\/span><\/span><\/span><\/span><\/span><\/h2>\n\n\n\n

As an agency, we encounter the following two customer scenarios in the 90% wilderness<\/p>\n\n\n\n

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  1. \"We have an ads budget of \u20ac100,000\"<\/li>\n\n\n\n
  2. \"What budget do you recommend?\"<\/li>\n<\/ol>\n\n\n\n
    \"\"<\/figure>\n\n\n\n

    Case 1 is often historical. Annual plans are made where no one really knows where the amounts come from. It could have been blanket assumptions from the past such as \"10% of turnover\" or \"3% of profit\" for the marketing budget. Studies such as the B2B marketing budgets<\/a> of the bvik. In this case, we as a Google Ads agency also work with what we are given and try to achieve the maximum in terms of the specified goals. <\/p>\n\n\n\n

    Case 2 (\"What budget do you recommend?\") is usually more difficult. This is because it is almost impossible to assess this from the outside; you need internal figures for this. For a valid calculation, we recommend a economic consideration<\/strong>which takes several factors into account.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n\n\n\n

    Example (may vary depending on the business model):<\/p>\n\n\n\n

      \n
    1. Conversion rate<\/strong>If I have 100 visitors, how many visitors make conversions? For example, 3 out of 100 visitors place an order in my shop. Online store<\/a>. Then my conversion rate is 3%<\/span><\/span><\/span><\/span><\/span><\/span>.<\/span><\/span><\/span><\/span><\/span><\/span><\/li>\n\n\n\n
    2. AOV - Average Order Value: What is the average order value<\/strong> across all my orders? Order 1 = 30 \u20ac, order 2 = 70 \u20ac, order. 3 = 50 \u20ac. (30+50+70) \/ 3 = 50 \u20ac.<\/span><\/span><\/span><\/span><\/span><\/span><\/li>\n\n\n\n
    3. Profit<\/strong>How much profit am I left with per order? In other words, what is the maximum amount I can\/want to spend on advertising for the order? If I have a profit of \u20ac30 on an order of \u20ac50, I don't want to spend more than \u20ac30 per order on advertising costs.<\/span><\/span><\/span><\/span><\/span><\/span><\/li>\n<\/ol>\n\n\n\n

      With these three core values, I can already make a simplified analysis for an initial calculation of my budget.<\/p>\n\n\n\n

      (Note: In practice, other factors such as CLV - Customer Lifetime Value - are included in the calculation later on. But we can leave that out for now).<\/p>\n\n\n\n

      Because with 100 visitors we now make 90 \u20ac profit (see above, 100 visitors = 3 orders \u00e1 30 \u20ac profit).<\/p>\n\n\n\n

      This means that I don't want to spend more than \u20ac0.90 on average for one click: 100 clicks * \u20ac0.90 = \u20ac90.<\/p>\n\n\n\n

      The big mistake in budget planning<\/h3>\n\n\n\n

      A question we are often asked: \"How high should my monthly budget for Google Ads be?\"<\/p>\n\n\n\n

      The simple answer: As long as the search volume is high enough and the ROAS (Return On Ad Spend, see explanation below) is positive, I feed the advertising machine with money.<\/p>\n\n\n\n

      Why should I suddenly turn off the tap after spending \u20ac1,000 on ads if my campaigns are successful? Why shouldn't I invest another \u20ac1,000 if I can make another \u20ac3,000 in profit?<\/p>\n\n\n\n

      The ad budget is usually limited by demand (number of search queries) and profitability. (Or by my ability to deliver and my cash flow).<\/p>\n\n\n\n

      Sure: The above approach is quite simple. There are more complex cases where, for example, it is not about order values but about lead prices. But the core business approach always remains the same. What does a conversion (registration, purchase, contact details, etc.) bring me in \u20ac and how much do I want to\/can I spend on advertising budget per conversion?<\/p>\n\n\n\n

      Only when this profitability no longer exists does it make sense not to invest any further budget.<\/p>\n\n\n\n

      Determine the click price (cost per click - CPC)<\/h2>\n\n\n\n

      So now we know that we only have to pay money to Google when we click on an ad.<\/p>\n\n\n\n

      Although we only find out the exact price at the moment of the click, we can call up approximate click prices for search campaigns in advance.<\/p>\n\n\n\n

      The Keyword Planner Tool<\/a> in the Google Ads account, where we can enter our keywords.<\/p>\n\n\n\n

      \"\"<\/figure>\n\n\n\n

      <\/p>\n\n\n\n

      Here we can enter a keyword such as \"leather boots\". <\/p>\n\n\n\n

      The tool then gives us the average search queries per month and the approximate cost per click for the lower and upper ranges.<\/p>\n\n\n\n

      After all, it makes a difference whether my ad is in first place or at the bottom of the search results page on Google. The higher up I am positioned, the more expensive (as a rule) the click.<\/p>\n\n\n\n

      Average click prices (CPC) for Google Ads in Europe by country<\/h2>\n\n\n\n

      In European countries, the following average click prices can be used as a guide about<\/span> Orientation:<\/p>\n\n\n\n

        \n
      1. Germany<\/strong>: 1,50 \u20ac - 2,50 \u20ac<\/li>\n\n\n\n
      2. United Kingdom<\/strong>1,00 \u00a3 - 2,00 \u00a3 (approx. 1,15 \u20ac - 2,30 \u20ac)<\/li>\n\n\n\n
      3. France<\/strong>: 1,00 \u20ac - 1,80 \u20ac<\/li>\n\n\n\n
      4. Spain<\/strong>: 0,80 \u20ac - 1,50 \u20ac<\/li>\n\n\n\n
      5. Italy<\/strong>: 0,80 \u20ac - 1,60 \u20ac<\/li>\n\n\n\n
      6. Netherlands<\/strong>: 1,20 \u20ac - 2,00 \u20ac<\/li>\n\n\n\n
      7. Belgium<\/strong>: 1,00 \u20ac - 1,80 \u20ac<\/li>\n\n\n\n
      8. Switzerland<\/strong>2,00 CHF - 3,50 CHF (approx. 2,10 \u20ac - 3,70 \u20ac)<\/li>\n\n\n\n
      9. Austria<\/strong>: 1,20 \u20ac - 2,00 \u20ac<\/li>\n\n\n\n
      10. Poland<\/strong>: 0,30 \u20ac - 0,80 \u20ac<\/li>\n\n\n\n
      11. Sweden<\/strong>: 1,00 \u20ac - 2,00 \u20ac<\/li>\n\n\n\n
      12. Norway<\/strong>: 1,20 \u20ac - 2,50 \u20ac<\/li>\n\n\n\n
      13. Denmark<\/strong>: 1,00 \u20ac - 2,00 \u20ac<\/li>\n\n\n\n
      14. Finland<\/strong>: 0,90 \u20ac - 1,70 \u20ac<\/li>\n\n\n\n
      15. Ireland<\/strong>: 1,00 \u20ac - 2,00 \u20ac<\/li>\n<\/ol>\n\n\n\n

        Trends:<\/strong><\/p>\n\n\n\n