360 Degree Media Group Blog

The Cost of Search Engine Advertising

Posted by Amy Baker on Oct 2, 2015 11:00:00 AM

Search engine advertising can be extremely beneficial to your advertising efforts. Especially since the number of people that can be reached can also be tailored to your budget.

Google Adwords use three main types of costing to price your ads that will appear on Google. They are cost-per-click, cost-per-impression, and cost-per-acquisition, you have the option to choose any of these relevant to your desired outcome.


Cost-Per-Click (CPC)/Pay-Per-Click

Cost-per-click involves setting a bid price that you are willing to pay for specific keywords and every time your ad is clicked on you are charged using your set maximum cost-per-click.

This is the only time you will be charged for the ad, if your ad is shown one hundred times and isn’t clicked on once there is no charge.

There are two types of bidding available, automatic and manual. When using automatic bidding a daily budget is set and Google will bid accordingly to your budget and will aim to provide as many clicks as your budget will allow. Manual bidding gives the user total control over their ad expenditure. This includes setting the maximum bid for desired keywords allowing you to move higher up the ranking list or choosing where the ad is shown. The CPC method is best used if your goal is to increase website traffic.

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 Cost-Per-Thousand impressions (CPM)

By using CPM, the costs of your ad is determined by the amount of times your ad is shown across the Google Display Network. The Display Network is all the potential websites, videos, and apps combined into a cluster where your ad could appear.

Within the network your ad will appear on relevant sites with content similar to that found on your site, these sites are selected with your desired target in mind. When CPM is used you pay for every thousand times the ad is viewed, CPM is only available for the options “Display Network only- All features” and “Display Network only- Remarketing”.

It is best used when the business’s goal is to increase awareness.


Cost-Per-Acquisition (CPA)

When using the CPA bidding strategy, a cost is incurred when a pre-determined conversion is completed by the viewer. A conversion is when a desired particular action occurs usually on a website; for example you have a “shop now” button on your website and that is your arranged conversion, when an individual clicks this button the conversion is completed.

If choosing this method you set the amount you are willing to pay-per-conversion and your bids are automatically set and are aimed to provide as many conversions your amount set will allow. This method is generally used by experienced Adword users.


The 360 Offer

Being a busy business owner, do you really have the time to create a successful campaign? With a minimum spend of $2,000 and an industry low management fee of 20% why don’t you give us a call and we’ll arrange the whole campaign for you.

To improve the success of your campaign we’ll research your keywords, implement advanced targeting to reach your specific audience, and monthly campaign reporting. Your management fee also includes the creation of the campaign, ad groups, ads, URL’s, content requirements, and optimisation to meet your goals.


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Topics: search engine marketing, SEO versus Adwords