How much does Google Ads really cost in Australia in 2023?
How much does Google Ads really cost in Australia in 2023?
Introduction
For a long time, advertisers have been able to rely on the stability of Google Ads pricing. This is because Google has had its AdWords system, which allowed advertisers to bid on keywords in order to show ads on search engine results pages (SERPs). However, this is about to change. The way that advertisers pay for their Google Ads campaigns will be changing with an introduction of cost-per-appeal (CPA) pricing in 2020 or 2021.
The cost of Google Ads is going to change
You may have noticed that Google Ads isn’t charging you for clicks the way it used to. Instead, your cost per click (CPC) is based on an average cost-per-appeal (CPA).
Google is moving away from CPC pricing because it wants advertisers to focus on their conversion rates instead of just getting as many clicks as possible. This means that you’ll be paying more if those visitors are actually converting into customers or leads and less if they aren’t doing so.
If your website attracts a lot of people who don’t buy anything or sign up for something on your site, then this new pricing structure will result in higher costs overall because they won’t convert into anything useful or meaningful for your business–and thus won’t be worth paying anything at all!
A shift from CPC to CPA
- What is the difference between CPC and CPA?
CPC is cost per click. This means that when someone clicks on your ad, you pay for it. The more people who click through to your website, the more expensive your ads become.
CPA stands for cost per acquisition and refers to any type of conversion that takes place after an action has been taken by a user (e.g., signing up for a newsletter or buying something). This can be more expensive than CPC because it’s not guaranteed that users will convert after seeing your ad–but if they do convert then it’s likely worth paying extra as they’re far more valuable than those who don’t convert at all!
What can you expect?
With a more cost-per-appeal pricing model, Google will be charging you based on how many times your ads are clicked on. This means that if people like what they see in your ad and click on it, you’ll pay more than if they didn’t click anything at all.
In other words: If someone clicks through to the website or app from one of your ads and then makes a purchase within 30 days of clicking on an ad (called an “appeal”), then Google will charge you based on how much money was spent by this customer during those 30 days after being referred by that particular ad campaign.
What’s the impact?
Now that we’ve covered the basics, let’s take a look at what this means for your business.
- What is the impact?
The new pricing model will have an impact on how much you spend on Google Ads and whether or not it’s worth it for your business. If your company is already spending $1 million per year on Google Ads, then this change won’t affect you too much–but if you’re just starting out with AdWords or haven’t been using it very long, then this could be huge! Your costs may go up or down depending on how well-optimized your campaigns are (more on that later). Either way, there are pros and cons to consider when thinking about switching from CPA bidding to cost per action (CPA) bidding:
Look out for more cost-per-appeal pricing
Google Ads has been using cost-per-appeal pricing for some time now, but the announcement of more granular pricing options means that advertisers can expect to see more variance in their costs.
Google Ads will now allow you to pay different amounts based on the quality of traffic you’re receiving. This might sound like it’s just another way for Google to make money off you, but it actually represents an opportunity for advertisers to get better value out of their ad spend – if they know how best to use these new features!
Conclusion
Google Ads is a great way to reach your customers, but it’s not free. The cost of Google Ads can vary depending on what kind of business you run and how much traffic you want to get. You can expect more cost-per-appeal pricing with this new system as well as an increase in minimum spend requirements for certain types of ads. However, if you’re willing to invest some time into learning about how AdWords works then there are plenty of ways to keep costs down while still getting results!
