Google Adwords Prices

Google Adwords Pricing Explained

Google Adwords prices or pricing is based on an auction system. The auction is won by the advertiser with the high Ad Rank not Cost per click. The formula is fairly simple. Ad rank is determined by quality score x Maximum Cost per click. So if you think whoever bids the most gets the highest ad positioning on Google, you are wrong. Refer below to see how ad rank is determined.

Google Adwords Prices

Ad Rank = Max CPC x Quality Score


As advertisers, apart from just increasing bids on keywords, the best advice would be to improve quality scores of keywords. Please read more on quality scores via our blog.


How much will I pay for Google Adwords clicks?


Now that we understand that Ad rank is a key factor, it becomes slightly more complex in working out how much you will pay for your clicks. The formula is as follows:


Your CPC = The ad rank of your competitor below you / quality score + $0.01

The common denominator is quality score.

Adwords setup costs & Adwords contracts explained.


There is no standard way to charge Google Adwords rates for clients. Some Adwords Agencies prefer offering Adwords packages which may or may not include a Google Adwords setup cost.


Other Adwords companies will prefer longer Adwords management contracts whilst others prefer smaller on no Adwords management contracts. At Find Your Ideal Customers, we believe in no setup fees and no contracts. The best way to retain a Adwords clients we believe is by delivering results. In talking with various providers you will find differences between Google Adwords rates in the market for these services.


Everyone knows how easy it is to setup an Adwords account, many of you understand that it is not as easy to make your Adwords. Find Your Ideal Customers are a specialist Adwords Management Company. Adwords is our core area of specialty, we are not a web design company or an SEO company providing add on services in Google Adwords.


If Google advertising is important to your business, please reach out to understand how our Google Adwords experts plan to provide your business with a real edge over your competitors.


Learn more about the Author: Jayson Rodda