GOOGLE ADS PRICING & FAQ

GOOGLE FAQ

  • Google Ads have become a cornerstone of modern business marketing strategy, essentially replacing what the printed phone book was for previous generations. Just as consumers once flipped through Yellow Pages to find local services, today's customers turn to Google search results, making Google Ads the digital equivalent of having a large ad in the phone book – but with far more capabilities and reach.

    Operating on a pay-per-click model, these ads allow businesses to precisely control their marketing spend while reaching potential customers at the exact moment they're searching for relevant products or services. This is a dramatic evolution from static phone book listings, offering dynamic, targeted advertising that wasn't possible in the print era.

    The platform's sophisticated targeting options enable businesses to focus their advertising on specific demographics, locations, and even times of day, ensuring marketing budgets are spent efficiently. For local businesses, this means capturing customers in their immediate vicinity who are actively looking for their services – much like the phone book did, but with precision that paper directories could never achieve.

    What makes Google Ads particularly powerful is its measurability. Businesses can track every aspect of their campaigns, from click-through rates to conversion rates, allowing them to optimize their advertising strategy in real-time. This data-driven approach ensures that marketing efforts can be continuously refined for maximum return on investment – a far cry from the "place it and hope" approach of phone book advertising.

    Moreover, Google Ads' integration with Google's display network extends visibility beyond search results to millions of websites, apps, and YouTube videos, creating multiple touchpoints to reach potential customers throughout their online journey. This omnipresence helps businesses build brand awareness while driving immediate actions like purchases or inquiries, making it an indispensable tool in the modern digital marketplace.

  • In today's digital world, Google Ads operates much like traditional advertising but with more precision and control. Just as businesses once competed for premium placement in the Yellow Pages – like that coveted first page or a double-page spread – spending more on Google Ads similarly increases your visibility. The principle is comparable to how TV advertisers secured prime-time slots or billboard companies offered premium highway locations.

    Think of Google Ads spending like radio advertising in the past – the more spots you bought during drive time, the more listeners you reached. With Google Ads, a larger budget means your ads appear more frequently throughout the day, reaching more potential customers.

    Small businesses might start with $500-$2,000 monthly, similar to buying a few radio spots or a small Yellow Pages ad. Mid-sized companies often invest $2,000-$10,000 monthly, comparable to maintaining several billboards or regular TV commercials. Large enterprises might spend $50,000+ monthly, similar to running national TV campaigns.

    The key difference is that unlike traditional media where you paid for time slots or space regardless of results, Google Ads only charges when someone clicks your ad. However, just like prime-time TV slots cost more than late-night spots, popular search terms require higher bids to secure top positions. The more budget you allocate, the more opportunities you have to appear in these premium positions and capture potential customers' attention.

  • When business owners search for their own Google Ads and can't find them, there are several common reasons. First, ads don't appear 100% of the time – even with a healthy budget. Google rotates ads among different advertisers to give everyone a chance to appear, which means your ad might not show up every time you search.

    Location also plays a crucial role. If your ads are targeted to specific areas or cities, but you're searching from outside these zones, you won't see your ad. For example, if your dental practice targets Kelowna but you're searching from Penticton, your ads won't appear.

    Daily budgets are another key factor. If your budget runs out partway through the day, your ads stop showing until the next day. This is like a radio station that's sold out of ad spots during prime time – once they're gone, they're gone until tomorrow.

    Time scheduling affects visibility too. If you've set your ads to run only during business hours but you're searching at 10 PM, they won't appear. Additionally, repeatedly searching for your own ads without clicking them can signal to Google that these searches aren't valuable, potentially reducing how often your ad appears for that specific search term.

    Google also resets their ad algorithm every hour which also impacts when your ads will appear. With hundreds of searches every hour for search terms your bidding for, mathematically it’s less likely you will see your ad than you will.

THE CUSTOMER JOURNEY

How many clicks does it take before a consumer buys your product or service?

The time between a consumer's initial Google search and first business contact varies significantly by industry, primarily based on urgency. For urgent needs like plumbing repairs, consumers typically make quick decisions after brief research of reviews and websites.

In contrast, businesses like realtors, home builders, and flooring companies often require more ad clicks to generate leads due to their extended buying cycles. While these industries may need more clicks for conversions, they tend to attract higher-value customers who make larger purchases. Businesses with shorter customer journeys, such as salons or flower shops, generally see faster conversion rates but lower average transaction values. Though Google attempts to show ads to consumers closer to making a purchase decision, the exact stage of their buying journey remains unknown when they click an ad.

According to Wordstream the average conversion rate across all industries is 3.75% for search ads and .77% for display ads. What this means is that for every 100 clicks of your search ads, 3-4 people who clicked on your ads will turn into a lead (contact you by phone or email). These numbers can vary depending on industry and longer buying cycle industries will see a slightly smaller conversion rate.

Remarketing through Google Display Network and YouTube is crucial for businesses with extended buying cycles. As potential customers research their options over weeks or months, strategic ad placement keeps your brand visible across websites, apps, and video content they consume. This sustained presence helps build brand recognition and trust during their decision-making process. When prospects finally reach the point of making a purchase decision, your business remains top-of-mind due to consistent exposure through display ads and video campaigns. This remarketing approach is particularly effective as it targets users who have already shown interest by visiting your website or engaging with your content.

A Deeper Dive Into How Much A Business Should
Allocate To Their Google Ads

When considering this question, it should come down to platform usage. If a small business for example spends $2,000 per month on advertising, the percentage they spend on each platform (Google, Meta & Others) should depend on the popularity of each platform.

The following chart (source bright local) shows both Google at 66% and Google Maps 45% leading the way. Combining them into a conservative 80% usage should be what business use as a guide to how much advertising budget goes to Google (this includes Search, Display & Youtube).

This graph is base on U.S. consumers so I would ignore Yelp for Canadians and Include Instagram with Facebook.

Total Marketing Budget Allocation

Google percentage includes Search, Display Network & Youtube, Maps combined. Other can be local options.

GOOGLE AD MANAGEMENT
PRICING

For any size business, it’s not a matter if you should advertise on Google, its who will manage it for you.

Some marketing agencies may charge a fee that includes the google ad spend, but then you as the business owner won’t know what percentage they take and how much goes to Google. Rememeber that Google needs to get paid as well and they charge for each click of an ad.

Other marketing companies charge based on your Google ad spend. So the more you want to spend with Google, the more they charge for ad management. This is something I don’t do.

I have one flat rate which is the same regardless of how much you put towards Google ad spend. Every penny after my management fee goes directly to Google on your credit card. This is complete transparency.

THE BIG PICTURE

I often get asked from new clients, what should I do? Where do I need help? The following is what I feel is most important for any business regardless of industry.

PASSION LEAD ME HERE