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Heidi Cridland

Heidi Cridland

Paying too much for Google Ads?

Are you paying too much for Google Ads?

We’re often asked about how much people may expect to pay for Google Ads. They’re often unsure how much they’re already paying their agency for management vs Google Ads. This is a transparency issue. Your agency should be very upfront about what’s going to Google Ads and what they’re charging for management. Once you know how much is going to Google Ads, you know what the potential is and what part of the market you can aim for. 

To figure out if you’re paying too much, ask yourself two questions:

How many leads am I getting?

Google calls leads ‘conversions’. Leads usually come via one of two different ways – by phone or by email. We often see reports which aren’t actually tracking leads. While someone may claim that 20 000 people saw an ad 1000 times, with an extra 500 clicks, these aren’t the metrics that matter. Leads (or conversions) is the important metric here. 

How much am I paying per lead?

We call this cost per conversion or cost per lead. This involves working out what the average sale value is and where those leads are coming from. For example, if you’re paying $50 for a lead and you sell a product for $2000, there’s a good chance that you’re getting a good return on your investment. But if you’re paying $50 per lead and you’re selling a product for $60, there’s a good chance you’re not getting a good return for investment.

If you have any questions, or if you’d like to chat with us about working together on your marketing campaign, contact us today

Heidi Cridland
Heidi Cridland
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