How Much Does a Keyword Cost? Check Keyword Prices before Launching AdWords Campaign

SEMrush Blog

May 16, 20133 min read
How Much Does a Keyword Cost

Businesses online are looking to increase their customer base and maximize their sales potential. For this, they need to advertise their products and services across the internet. Google AdWords remains one of the foremost platforms for marketing your business online. After all, Google has written the book on online marketing so it is only right that you use their services to get your business to reach the widest possible audience. However, you cannot just get started with AdWords right away. There are many different things that you need to take into account, most importantly the cost per keyword.

The cost of keywords on your list will determine the kind of money you have to spend on your campaign. It is quite possible your costs are so high that even a decent return on investment (ROI) does not appear positive. This is why you need to work out the keyword cost per click in advance so you can set a budget accordingly. One mistake marketers and webmasters are guilty of making over and over again is that they don’t take the keywords into account when setting a budget. There are several different costs you have to incur when running an AdWords campaign, not just the keywords.

Google takes a number of factors into account when working out the keyword price. The most important factor remains the number of clicks a keyword has been receiving. This is why the most popular keywords are often the most expensive keywords as well. Because of their high demand, the keyword prices increase and you have to spend more money on them than you have to do for the other keywords on your list. You have to check the keyword cost for each and every keyword you intend to use in your campaign. Otherwise you wouldn’t be able to set a reliable budget.

It is quite possible that the AdWords keyword price you are looking for may not allow you to buy relevant and high value keywords. These are the keywords that are most likely to benefit your ad campaign in a big way. You have to ensure this to get more people to click on your ads and be directed to your website or landing. If you know the cost per keyword in advance, you can estimate how much it would cost you to generate a lead. Capturing leads is one of the foremost purposes of an AdWords campaign but it is only feasible if the cost is reasonable. If you are spending too much money, you are heading towards a loss.

One of the easiest ways you can check the price of a keyword is through a keyword cost estimator tool. You won’t have much trouble finding such a tool online. These tools take all the relevant factors into account which Google uses to determine the price of a keyword. Thus, the estimate the keyword cost tool provides you is reliable to a large extent. Some variance is possible but generally, you can depend upon the cost projection made by the tool. So, you can easily work out AdWords keyword cost for every word or phrase you want to use in your campaign.

If you feel the keywords are proving to be too expensive, there are some ways for you to lower their cost.

  • Firstly, you need to improve the clickthrough rate (CTR) for the keywords. This is only possible if you have selected the right keywords that represent your business perfectly. Only then will people be willing to click on your ads and be directed to your website.
  • Select keywords that are relevant to the theme of your website or business. In this case, the relevancy of the keywords to your business will actually help you lower the cost per keyword to a certain level.
  • The quality of your website plays an important role in determining its search engine ranking. If your website has been designed well and is user friendly, you are bound to be ranked high. In this case, using relevant keywords in the content posted on your website further bolsters your position.

These are some ways in which you can get a lower cost per click (CPC). You need to pay attention to the keyword cost per click or else you might end up spending far too much money than you had initially been prepared for.

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