One major question you might have before you start with Google Ads is, “How much does Google Ads cost?” You want to know how much your campaign will cost before running it. Instead of wondering how much you will be charged and how you will be billed, we give you everything you need to know.
The billing system of Google AdWords is centered around the idea of convenience for advertisers. Therefore, the platform allows you to decide how much you want to budget for an advertisement campaign that suits your business and your budget. You have control over the amount you spend as an advertiser because of the budgeting options.
Google Ads Costs & Billing Methods Video
You can watch the video directly on YouTube as well.
How Google Ads Billing Works
You can find all your Billing information from the Tools & Settings link at the top of the Google Ads menu, as shown in the image below.
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Your business starts incurring charges when you create your campaign on Google Ads and drive clicks or video views. Ad spending is tracked and billed based on the activity generated by your campaign. Furthermore, you will continue to be charged as long as your campaign drives activity.
If you decide to pause your Google Ads campaign, you will be charged for the amount it spent until then. However, if you choose to re-run this ad campaign, you can always drive more clicks and activity, even if you paused it at one point.
Managing your Google Ads account effectively is crucial to control costs and improve campaign performance.
Google Ads Billing Summary
Your billing summary shows the amount you have paid and the net cost for each month.
How to Customize Google Ads Budget and Billing Options
To customize your ad campaign billing options, go to the Tools & Setting menu on the Google Ads dashboard and select the ‘Settings’ option under Billing.
Once you select either of these options, you’ll be given the following choices for making an ad campaign payment:
Google Ads Payment Settings
This section determines when you can pay for your ad campaigns. Setting a Google Ads budget is crucial for managing costs. Depending on your country or region, you can choose from the following three payment settings:
Automatic Payments
After your ad campaign is live, Google AdWords will automatically charge you for it. Automatic payments is the most common setting for advertisers. You will be charged when you reach your payment threshold.
Manual Payments
In this mode, you’re supposed to clear the ad payment before it goes live. Once your ad campaign runs and you can get the costs, the credit from your paid amount will decrease. The ad will stop running once you’ve used all your prepaid amount.
Monthly Invoicing
In this mode, Google AdWords will provide you with a line of credit to cover your ad campaign costs. You must pay your monthly invoice every month to keep your ads running.
Monthly Google Ads costs can vary significantly based on industry and business size. Small-to-mid-size businesses could spend anywhere from $100 to $10,000 monthly or more, depending on competition and specific business goals.
Google Ads Pricing and Payment Method Options
You can prepay for your Google Ads or pay after your campaign runs and you reach payment thresholds. Therefore, your options are prepaid or postpaid, and choosing a payment method can significantly impact your ad budget.
Prepaid
If you select the prepaid method, an advance bill for your ad campaign will be generated every month. Once your paid balance runs out, your ad will be stopped.
Postpaid
However, if you choose the postpaid method of payment, then you will receive a bill every 30 days or when your Google AdWords account reaches its billing threshold.
In fact, Google encourages users to choose the postpaid mode of payment simply to prevent their ads from being stopped. In contrast to a prepaid model, this also prevents them from updating their billing information every month.
Understanding Google Ads pricing is crucial for effectively managing advertising budgets. Costs vary based on industry competitiveness, ad targeting, and user engagement.
Choosing Your Form of Payment for Google Ads
You can pay for your ad campaigns with the help of a debit or credit card or directly through your bank account. Different payment methods can be used for various Google Ads campaigns, making it easier to manage your ad budget. However, it’s preferred that you choose the card payment option for its convenience.
In case you have an issue with your credit card, you can also use other additional forms of payment. Furthermore, there are also several Google Ads promotional coupons available for new accounts.
The Google Display Network offers different cost structures compared to the Google Search Network, with typically cheaper CPC rates and a wide range of sites and platforms for ad placements.
Final Thoughts
In the end, understanding the various billing and payment methods with Google Ads is pretty easy, and managing your costs is very easy. You can follow any budget you need to in terms of a daily or monthly budget. The hard part is making your investment profitable.