When starting a paid search engine optimization campaign, the question of cost is a must. What budget should you invest in your SEO campaign? Search Engine Advertising (SEA) ? What are the rates charged by the players of paid search engine optimization, and more specifically by Google Ads? These are classic questions, shared by all the companies that launch themselves as advertisers. Indeed, it is impossible to plan an ATS budget without having a clear idea of the prices charged.
Even if we only look at Google Ads (ex Adwords), the main paid search engine optimization platform to date, it is difficult to answer the question of the cost of paid search engine optimization in one sentence. Google Ads operates according to an economic scheme of its own, and it is necessary to understand it in order to control its expenses. To know what the cost of paid referencing is, for example, it is necessary to establish a daily budget, but on the basis of a monthly vision. It is also necessary to determine the price you are willing to pay for a click, or for a new customer. It is also often advisable to plan management fees for a web agency type service provider.
Read also : SEA, our complete guide
- 1 Understand the economic functioning of paid referencing
- 2 ATS expenditures that are controllable and delineated
- 3 Google Ads, or the specificity of a business model based on rankings
- 4 Which SEO budget should I choose?
- 5 Is it necessary to pay a web agency to ensure effective paid search engine optimization?
- 6 FAQ on the cost of paid listing
- 7 Related article
Understand the economic functioning of paid referencing
Paid referencing - also known as Search Engine Advertising (SEA) in English - is defined as an online advertising system that helps to increase awareness and traffic on its website. This service has a cost. Its client, the advertiser, usually pays for it on a cost-per-click (CPC) basis. This is why it is also said that paid referencing is a system with a cost per click (CPC). Pay Per Click (PPC). This means that the advertiser pays each time an Internet user clicks on his ad.
There are, of course, other ways to charge for paid referencing, especially on Google Ads. However, the cost per click remains at the centre of its economic operation.
Paid referencing is in fact above all a advertising grading system. To be well ranked and appear in the search results of the Internet user, an advertisement must meet certain criteria. In particular, the advertiser must have paid quite a lot for the click.
In the case of Google Ads, indeed, advertisers choose keywords, which they integrate into ads. These keywords embody the heart of their business. They must be based on the queries used by Internet users when searching for the targeted articles or services. The company behind the ad thus determines "bids" on these keywords..
If the Internet user searches for a keyword on Google, then the company's ad is displayed and the consumer clicks on it, the company is then billed. This is known as cost-per-click billing. The cost of paid listing depends on four factors:
- the cost per click for a keyword at time T ;
- the number of clicks per month;
- the maximum cost-per-click bids set by the advertiser for each keyword;
- the maximum daily budget defined by the advertiser.
See also our article "How much does it cost to click on a Google Ads ad? »
ATS expenditures that are controllable and delineated
The cost per click at a given time T depends on competition from other advertising companies in terms of bidding. On Google Ads, the average CPC is estimated between 1 and 2€. It is however sometimes much higher. This is the case for keywords on which the competition is in full swing. The energy sector, especially gas, for example, has a cost per click that is around 50€.
As for the number of clicks per month, the number of clicks per month is limited by the maximum budget set by the advertiser. This budget is calculated on the basis of an average daily budget multiplied by 30.4, i.e. the average number of days in a month. If the company therefore opts for a budget of €304 per month, i.e. €10/day, its monthly bill never exceeds this amount. This is even if the daily expenses vary from simple to double.
The cost of paid referencing also depends on the maximum bids chosen by the advertiser. If the company thus limits the bidding on a keyword to 2€, there are two scenarios:
- either the bid on this keyword is too low to compete with the competition, and the ad does not appear;
- either this auction is competitive and the announcement appears in the results of the Internet user.
The cost per click depends, in the latter case, on the the amount that Google considers necessary to properly position the ad in his search results. It is limited, in all cases, by the maximum bid value set by the advertiser.
The explanation below describes the main features of paid search engine optimization, including Google Ads. In detail, the cost per click can also be exchanged for a cost per acquisition, or CPA. This is the the price the advertiser is willing to pay to get a new customer. Estimating the target CPA is central to identifying the budget to devote to Google Ads.
Google Ads, or the specificity of a business model based on rankings
In the specific case of paid referencing via Google Ads, the cost per click is not the only factor determining the success of an ad.
The positioning of an advertisement in Google search results is called the "AdRank". It depends, of course, on the maximum bid determined by the advertiser on each keyword. This ranking in the SERPs (Search Engine Result Pages) is, however, also dependent on a quality score. This quality score is attributed in particular for each keyword chosen. It varies from 1 to 10 and is used to evaluate the relevance of the advertisements.
To get a good "AdRank", a Google" ad "(advertising) must indeed facilitate the user experience. Google's algorithms therefore evaluate its performance in this area. There are many ways to optimize a Google Ads campaign. Among the indispensable ones, however, is the need for the ad to reflect the advertiser's request. It is also necessary to that the landing page is based on the content of the advertisement..
In order to evaluate the cost of paid referencing via Google Ads and its profitability, the cost per click is not the only parameter to be taken into account.
Which SEO budget should I choose?
To determine the cost of paid referencing, we must, of course, think about the budget we want to invest in this type of strategy. There are several techniques for define a Google Ads budget that's bearing fruit. In particular, the SEA asks to define a maximum daily budget. This budget varies of course according to the means and objectives of each company. It can start at 50€, and rise up to 1500€ or more, depending on the needs.
Google's keyword planner tool helps identify the most suitable keywords for a commercial sector. It also gives an idea of the volume of research that corresponds to them, and the competition that concerns them. It is therefore an interesting feature for estimate the ideal cost per click for each keyword, and thus the cost of paid referencing in a more global way.
The budget for an advertising campaign is not the only one to be taken into account to estimate the cost of paid referencing. It is also necessary to provide for the expenses due to the maintenance of the website related to the ads. It often needs to be revised to meet all of Google's guidelines. For example, it is sometimes necessary to use an outside service provider to ensure that product pages facilitate the user experience.
Is it necessary to pay a web agency to ensure effective paid search engine optimization?
When you start a paid search engine optimization business, the question of using a specialized agency often arises. Google Ads customer support is well documented. It is enough to guide advertisers who already have experience in digital marketing and who develop small-scale advertising campaigns.
For companies that start in paid listing without mastering the functioning, or which aim at important SEA campaigns, a web agency remains however very indicated.
Using an external service provider also provides access to other skills, which are often necessary to carry out an advertising campaign. Web agencies do indeed have specialized talents in website architecture or natural referencing. This expertise is essential for rethink a website and its product pages according to the many guidelines that Google Ads request to respect. A web agency can thus ensure that the conversion tunnel built on an e-commerce site makes the cost of paid referencing profitable.
FAQ on the cost of paid listing
Some web agencies are more specialized in paid search engine optimization than others. These include those that have managed to become Google Partners following a Google evaluation. You should also target agencies that hold a Google Ads or Google Adwords certificate.
The rates of the web agencies depend on the scope of the service offered. In the case of paid referencing, the cost of managing a Google Ads campaign is calculated in different ways. Some agencies ask for a global price for a given period. Others propose a budget that varies according to certain results. Other web agencies, finally, prefer to take a percentage of their client's Google Ads budget.
A SEA campaign that serves to improve traffic on an e-commerce site is easily evaluable. The company actually quickly notices the ads that are driving sales. It should be kept in mind, however, that a click does not always imply a sale. In the case of advertising campaigns designed to improve brand awareness, the ROI is therefore less easily measurable.