How do you turn $2 into hundreds or even thousands of dollars in a day?
Your first thought might be to dismiss the notion that such a thing is possible, but Google does it every single day with keywords. When using Google Ads, Google’s pay-per-click (PPC) advertising platform, you might choose to target inexpensive keywords to stay within your budget. Even a $2 per click keyword represents considerable income for Google when figuring the number of clicks made each and every day. Imagine then, how much Google earns on keywords that are considerably more expensive.
Here are the 10 most expensive Google Ads in 2020 keywords:
- Business Services. Average CPC $58.64
- Bail Bonds. Average CPC $58.48
- Casino. Average CPC $55.48
- Lawyer. Average CPC $54.86
- Asset Management. Average CPC $49.86
- Insurance. Average CPC $48.41
- Cash Services & Payday Loans. Average CPC $48.18
- Cleanup & Restoration Services. Average CPC $47.61
- Degree. Average CPC $47.36
- Medical Coding Services. Average CPC $46.84
To give you a better understanding of how incredibly expensive these keywords can be, let’s take one of the “less” expensive keywords on the list: Asset Management. Targeting this keyword will cost, on average, a remarkable $49.86 per click.
Whenever someone makes a search on Google using a word like “digital asset management” or “digital asset management solutions,” PPC ads will appear (with the “Ad” label) above and below the organic results. Each time one of those ads is clicked on, Google earns just under $50.
Take that amount and multiply it by 100 clicks each day. That means the advertiser using that keyword will pay Google a little under $5,000 each day. In a week, that’s almost $35,000 and in a year about $1.78 million.
Now take that number and multiply by seven—the maximum number of AdWords PPC ads per SERP page—and you will understand how Google can make as much money as it does.
This information was gathered by Wordstream, as they researched related keywords with high average costs per click. They grouped keywords such as malpractice lawyer with injury lawyer together. This means that individual keywords exist that are even more expensive that those listed here.
It Means Less Than You Think
These numbers are for incredibly competitive keywords, so they are perhaps not ones that you need to concern yourself with, but even though cost-per-click is often the focal point, it is actually more important to consider cost per conversion.
While you obviously want the keywords that receive many searches, your advertising can become much more effective by pushing down costs while improving conversion rate. One way to do this is through Quality Score, a metric used by Google to determine not only where AdWords rank in the paid search results, but also the amount advertisers pay per click.
By raising your Quality Score and thus lowering your cost per ad click, you will effectively guarantee a lower cost per conversion. Optimizing Quality Score has the potential to reduce your cost per conversion by up to 80%.
If you are concerned about the cost of targeting the keywords that you want, just remember that the average price is just that, average. There will be those who pay much more, but you can pay less once you optimize for clicks and conversions.