Costs of goods are on the rise and costs in marketing are no exception. With the cost per click in internet advertising going up, it’s important to understand how these paid advertisements’ prices are shifting and why to ensure you’re getting the most bang for your buck with your marketing budget. This will help you decide if paid advertising is still a worthwhile investment.
Let’s take a look at how the average cost-per-click has changed over the years and what experts are predicting will happen in the future.
What is the average cost per click for internet marketing ads in 2022?
The average cost per click or “CPC” is the value we get when we divide the total cost of clicks by the total number of clicks.
In 2022, the overall average cost per click (CPC) was €0.63.
How does this compare to the average cost per click in 2021 and 2020?
In 2021, the average CPC was €0.67. Whereas the average CPC for google ads in 2020 was slightly cheaper, at €0.49.
Reasons for the average cost per click increasing or decreasing
The increase or decrease in the CPC is due to the state of the economy. When there’s a recession, businesses are more reluctant to spend money on marketing and advertising. However, as the economy improves, so does spending on marketing and advertising, increasing the CPC.
For example, when Covid-19 hit the global economy in 2020, the average CPC collapsed to a shocking €0.49. But this however increased to €0.67 in 2021. This has since dropped to €0.63 as more businesses were recovering and able to allocate more ad spend in their online marketing strategies again.
What implications does this have for businesses that use internet marketing ads as part of their marketing strategy?
Since CPC doesn’t always guarantee sales, you should always look for the best CPC rates that can help them get more leads and conversions from their target audience.
New or established businesses alike should allocate a reasonable budget for campaigns to stay ahead of their competition.
As the CPCs are constantly changing, businesses should always be wary of how much they’re spending on PPC ads. They should also consider other marketing channels that can help them reach their target audiences at a lower cost such as organic social media marketing or email marketing to reach your target audience.
What is a good average cost per click?
There is no definite answer as to how much you should spend on CPCs. However, a good rule of thumb would be to spend around 2-5% of the total budget for an effective PPC (pay per click advertising) campaign.
This means that if your business has a marketing budget of €1,000, you should expect to spend around €20-50 on CPCs.
Of course, you must also consider the quality of your ads and landing pages to make sure that they’re getting the most out of their paid internet marketing campaign. A high CPC but low conversion rate would be a waste of money, so it’s important to focus on creating effective ads and landing pages.
How can businesses offset the increased cost per click to reduce their advertising budget?
If you don’t want the increased cost per click to affect your online marketing strategies and budget, you should remember that creating a relevant ad is essential.
According to Ad Rank, search engines like Google evaluate where your Ad shows. This Ad Rank translates to the total of your maximum bid x quality score.
The quality score is made up of these three factors:
- Expected Click-Through Rate (CTR)
- Ad Relevance
- Landing Page Experience
Make sure your ad is as relevant as possible to the keyword you are bidding on for a higher quality score. The history of your online advertising and content marketing also plays a critical role in your Expected CTR.
What other factors can affect the cost per click for internet marketing ads?
Many other factors can also affect the CPC for paid search advertising. For example:
- The time of day or week that you run your ad: Ads that run during peak hours or on weekends tend to be more expensive than ads that run during off-peak hours.
- The location of your target audience: Ads targeting users in urban areas tend to be more expensive than ads targeting rural areas.
- The type of device that your target audience is using: For example, ads targeting users on mobile devices tend to be more expensive than ads targeting users on desktop computers.
So, is it still worth investing in paid internet marketing ads in 2022 and beyond?
Yes, it is definitely worth investing in paid internet marketing ads in the future as long as you are careful with your keyword research, manage your budget well and are creating relevant ads.
Paid internet marketing can be very beneficial to your business if done correctly, and even with the CPC rising, the return on ad spend is still high.
PPC campaigns are an excellent way to drive traffic to your website and generate leads. If you are looking for immediate results, then PPC should be a key part of your digital marketing strategy. By running a PPC campaign, you can reach the top of search engine rankings quickly and increase brand awareness.
What trends do you predict for internet marketing ads in 2022 and beyond?
In 2022, we predict that the average CPC will continue to rise as businesses become more aware of the importance of digital marketing and invest more in PPC campaigns.
The increased competition for keywords will also result in a higher cost per click. So, if you are planning your internet marketing budget for next year, make sure to factor in these predicted trends.
We also predict that more businesses will start to use Ad Extensions to improve their CTR. Ad Extensions are a great way to improve your chances of being clicked on, as well as providing more information about your product or service for potential customers to see.
What advice do you have for businesses that are planning their internet marketing ad budget for 2022?
Our main piece of advice would be to stay up to date on the latest changes in CPCs and PPC trends.
To keep costs lower on paid internet marketing, you should focus on creating relevant and targeted ads. Relevance is key when it comes to improving your quality score, which will in turn lower your CPC. If you are not sure where to start, we recommend using Google Ads Keyword Planner to research which keywords are most relevant to your business.
Another important factor to consider is your budget. Make sure you set a realistic budget that you are comfortable with and that will allow you to reach your desired results.
Finally, don’t forget to track your progress and performance so that you can adjust your strategy if necessary. By monitoring your marketing campaigns closely, you can make the necessary changes to improve your ROI.
- Stay up to date on all the CPC and PPC trends and costs.
- Focus on creating relevant ads using targeted keywords
- Optimise your landing pages
- Be sensible with your ad spend budget.
- Track your progress and performance to diagnose your ad strategy as soon as problems arise.
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