Google Adwords Fees And Your Marketing Budget

If you’re a small business owner seeking to expand your operations, you may have questions about Google Adwords fees. If you’re unfamiliar with Adwords, you may wonder if the Adwords fees can fit in your marketing budget. While operating Google Adwords may at times be a little complex, managing the fees is pretty simple.  There can be an assortment of fees associated with an Adwords account and they can all vary due to your specific needs and objectives. Here’s a breakdown of the various fee options you will have with Adwords.

Fees paid to Google are the most flexible aspect of Adwords fees. These fees are determined by your budget and the bid amount that you decide on. Your budget reflects what you are willing to spend on your ad each day and your bid amount indicates the most you are willing to pay for each particular action that is bid on.

There are three bidding option types available to you. The first bidding option, cost per click (CPC), bidding is done either automatically or manually depending on your selected settings. These Adwords fees are charged to your account when someone clicks on your ad to go to your landing page. After they click, you share whatever your site is about. You can use Analytics and other Google tools to track what this potential customer does while on your site and where they came from. The second bidding option is cost-per-thousand impressions (CPM). With this option, you pay your set bid amount for every 1,000 times your ad appears somewhere on Google. It’s great for getting your name or logo out there to get some brand recognition.  These Adwords fees are applied for putting your business on display via the web at times and places you select. People buy from those they know, and this is a great way to get known. The third bidding option is cost per conversion, referred to as CPA (cost-per acquisition). Use this when you want to focus on conversions such as a sale, email sign up or various other possible actions. Adwords will automatically try to get you as many conversions as possible under your bid settings. These Adwords fees are applied when the desired action is done by someone looking at your landing page.

Other fees, not paid to Google, pertain to training, and/or coaching, which is what you will want, if you want to optimally run the account in house. If you want to outsource the management of the account, then you will see initial account set-up fees and management fees. These Adwords fees vary from company to company and are dependent on your individual needs.


Article written by

Aaron Opfell is an author, speaker, and CEO of SearcherMagnet, a rapidly growing Internet Ad agency. Google Adwords & Google Analytics certified, Aaron has over 8 years experience in Online Marketing & Advertising across Search Engine Optimization, PPC, Email Marketing, Display/Banner Advertising, Affiliate Marketing and more.

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