Google Ads, one of the most popular advertising platforms today, offers businesses the opportunity to reach potential customers, promote products, and enhance brand visibility on a global scale. However, many businesses remain concerned about how much it costs to run Google Ads to set an appropriate budget. Particularly, questions arise about how agencies charge for Google advertising services. Let’s explore Sóc Lửa Agency’s latest Google Ads pricing details below!
How is Google Ads Cost Calculated?
Before delving into Sóc Lửa Agency’s pricing structure, it’s essential to understand how Google calculates its advertising costs. Similar to Facebook, Google employs an auction system to determine ad costs. However, ad visibility and ranking don’t solely depend on bidding amounts but heavily rely on ad quality scores as well.
Google Ads charges are based on clicks on ads or the visibility of specific keywords. Moreover, costs vary depending on several factors such as campaign duration and ad type. Each type of ad delivers different results and costs, tailored to meet business goals. Google Ads calculates fees through the following methods:
CPC – Cost Per Click: Costs are calculated based on the number of clicks a customer makes on an ad. Advertisers bid on keywords, and a fee is incurred each time a customer clicks the ad. This is one of the most commonly used payment methods today.
CPM – Cost Per Mille (Thousand Impressions): Advertisers pay based on the number of ad impressions. This method is used for ads on Google’s Display Network. For every 1,000 impressions, businesses pay a specific fee. It’s ideal for promoting brand awareness, products, and services.
CPA – Cost Per Action: Payment is based on each action customers take on the website after clicking the ad. This fee structure is tailored toward sales-oriented goals. It allows advertisers to measure ad performance based on specific actions they want users to complete.
Factors Influencing Google Ads Costs
To provide detailed and accurate Google Ads pricing, it’s essential to understand the factors that impact advertising expenses. No single, fixed number applies when estimating costs for promoting a product, service, or brand. Costs are influenced by several factors:
Industry Competition Level
Competition in the industry significantly affects advertising costs. Industries like real estate, construction, and interior design often have higher CPCs due to their broad scale and intense competition. For example, if multiple businesses bid on the same keywords, ad costs rise. High-demand periods, such as peak seasons or promotional campaigns, may also drive up bid prices.
Ad Placement and Format
Ads targeting different countries or regions have varying costs. Additionally, the format of the ad (e.g., text, display, video) impacts Google Ads expenses.
Ad Quality
Unlike Facebook, where ad placement depends largely on bids, Google places significant weight on ad quality. This determines whether the ad appears, its placement on search results pages, and its associated costs. High-quality ads are more likely to achieve top placements with optimized bids.
Customer Audience Size
The size of the target audience also affects advertising costs. Smaller audience segments may incur higher costs per reach, particularly for display network ads and YouTube Ads.
Advertising Budget
Setting a daily and campaign-specific budget is crucial for keyword bidding. Ads with insufficient budgets are less likely to appear in favorable positions or may require higher costs to achieve visibility.
Advertiser Expertise
Beyond external factors, the advertiser’s skills and experience play a critical role in cost optimization. To minimize costs, you need engaging ad content, quality Google Ads accounts, and a well-researched keyword strategy with high conversion potential. Regularly monitoring account performance and making necessary adjustments weekly ensures sustained efficiency.
Latest Google Ads Price List 2024
As mentioned earlier, the cost of advertising on Google depends on various factors, such as the industry, ad type, and more. You can estimate your advertising cost by accessing the ad setup section in the Google Ads Manager and selecting your campaign goal and budget.
When opting for Google Ads management services or renting an advertising account, the pricing is typically calculated as a percentage of your budget. However, the cost of using the service will vary based on the type of ad, campaign objectives, and the industry you're advertising in. Each service provider may charge different rates, as their pricing policies and customer discounts may vary.
| Service Package | Advertising Setup Fee | Optimization Fee |
| Google Search Ads Package (Google Search) | 1.000.000 đ | 4% – 20% |
| Google Display Network (GDN) & Google Remarketing Ads Package (Google Retargeting) | 1.000.000 đ | 4% – 20% |
| Google Discovery Ads Package (Google Discovery Display) | 1.000.000 đ | 4% – 20% |
| Google Shopping Ads Package (Google Shopping) | 1.000.000 đ | 4% – 20% |
| Video Ads/YouTube Ads Package | 1.000.000 đ | 4% – 20% |
| Email Marketing Ads Package | 1.000.000 đ | 4% – 20% |
| Local Search Ads Package (Local Search) | 1.000.000 đ | 4% – 20% |
| App Ads Package (Mobile Apps) | 1.000.000 đ | 4% – 20% |
| Multi-Channel Ads Package | 1.000.000 đ | 4% – 20% |
In addition to advertising costs, service fees, and VAT, customers will also need to consider additional taxes depending on the country’s regulations. To get the most accurate pricing for running Google Ads, we encourage you to contact us at hotline: +84868133882 today!
Understanding the Google Ads pricing structure will help businesses determine an appropriate budget for their campaigns while optimizing costs. We hope the information shared above will assist you in managing your Google Ads campaigns more effectively!
Why Should Businesses Use Google Ads?
Google is the world’s largest search engine, with an enormous number of daily queries from users. Its advertising tool provides many benefits for businesses, including:
Reach the Right Audience at the Right Time
Most users turn to Google when they need to find information about products or services. Google Ads enables businesses to reach their target audience when they are searching for the products or services offered. This increases visibility, engagement, and conversion rates. Compared to SEO, Google Ads delivers faster results with higher sales potential.
Increase Website Traffic
Running Google Ads can significantly improve your website’s ranking on the search engine. Especially when running an effective campaign, businesses can boost their online presence and attract more traffic to their website. This is particularly useful for online businesses or those relying on online sales.
High Effectiveness and Cost Optimization
Google provides powerful advertising tools that help businesses define their target audience, budget, and keywords. Among advertising channels, Google Ads is considered to have a high conversion rate. Ads appear in the top four positions and the last three positions on search results, where users are more likely to click.
Furthermore, Google Ads allows businesses to target the right audience at the right time, maximizing sales. Unlike Facebook Ads, Google only charges advertisers when users click on the ad, meaning businesses pay for actual interest, which helps optimize costs effectively.
Easy Performance Measurement
Google provides advertisers with various tools to track, analyze, and measure campaign results through metrics like click-through rate (CTR) and conversion rate. This data helps advertisers adjust their strategies to optimize performance and achieve better results.
Enhance Brand Awareness
Running Google Ads helps businesses display their product, services, or brands at prime positions with a high click-through rate. Ads are not only shown on search results but also across Google's network (YouTube, Gmail, etc.) and related apps (Google Play). Frequent exposure to the target audience helps significantly improve brand recognition.
Frequently Asked Questions
Google Ads charges only when a user clicks on the ad. However, many advertisers worry about invalid clicks. Google has implemented measures to prevent invalid clicks through a click-filtering system. The system filters out invalid clicks at the end of each day (24h) and again after 15 days, issuing refunds for any invalid clicks. Additionally, Google sets a daily cost cap to prevent invalid clicks. Advertisers are encouraged to monitor their campaigns regularly and use tools like the "Invalid Clicks" column to check for suspicious activity. Other measures like blocking IP addresses or excluding invalid click locations can help reduce the risk.
In addition to the advertising cost, there are several potential additional fees when running Google Ads:
VAT: As of November 2022, Google applies VAT to all advertising accounts, calculated at 5% of the advertising cost.
Taxes by country: Some countries have specific tax regulations related to advertising, and businesses will need to pay these taxes.
Agency and account rental fees: If you're working with an advertising agency or renting a Google Ads account, you'll need to pay the service fees associated with these services.
