Keyword Cost Plays an Important Role in Your Budget

by SONIKA DHALIWAL Professional

As compared to traditional advertising, a higher return of investment is offered by Google Ads. It has a more targeted approach. There are a lot of different metrics in the Google Ads, the cost of keyword will also rise and fall. If you want to have a positive ROI, then you need to pay heed on your expenses.

If you are thinking about keyword costs, then you must know that in Google Ads, the cost of the keyword which the advertiser has to pay when anyone clicks on the ad. This is known as CPC ( cost per click ). It also depends on the industry and the competition level. Those industries with high profits and customer lifetime value have to pay more for expensive keywords. So, first of all, you need to perform the SEO competitor analysis and the popularity of each keyboard. This initial research can also be done with the help of the keyword Planner toll within the interface of Google Ads. There are different factors which affect the keyword costs. In the PPC advertising, you need to know the costs of keywords as this will help you to decide according to your budget.

Keywords Popularity - the number of clicks is the most important factor for this. This is the reason the popular keywords are mostly expensive. As their demand is high so the prices of the keyword also increase. You should also spend money on these rather than those which are on your list. The cost of the keyword must be checked for all the keywords which you want to use in your campaign. If you skip this, then you will not be able to set a reliable budget for your campaign.
Level Of Competition: The competition value is the indicator of the advertisers who are bidding on the keyword. As the level of competition increases, so does the price of bidding. This leads to an increase in CPA and CPC.
Search Volume – This keyword search volume tells about the people who are using the term for search every month. So when there is higher search volume then this leads to an increase in exposure, traffic, and brand awareness. So this is the reason, this has high CPCs and a lot of businesses want to target them.
Network Choice - There are two platforms of Google – display network and search network. This type of format provides you more control and flexibility where you want your ads to appear. The target audience can be refined by adjusting your location, device targeting, and demographics.

Quality score is also an important metric that has an impact on the cost of the keyword. More preference is given by Google Ads to those with a high-quality score. They will rank high also and still cost less. When you improve your quality score, then you can spend less on the keywords. With this, you can set your budget accordingly and increase brand awareness.