- Nature of your business: Advertisement for some businesses can be very costly due to high competition for it. For example, if you are selling high-worth items ( like any property) then surely everyone will try to pay higher to get a customer and this increases the competition and so you will have to pay more to Google Ads.
- Keywords: Some keywords can be cheap while some are very costly. So it also decides how much Google Ads pricing will be. If more advertisers are competing on similar keywords then its price ( bidding) will increase and in some cases, one-click can cost more than $100.
- Ads Position: The top of the position is more costly than the position below it. So if an Ads is showing in the 1st position may pay 30% more than Ads showing in 3rd position. One of the best strategies is to make more attractive ads and show in the 2nd or 3rd position. Better Google Ads can get more clicks even at this position.
- Location and Time: If there are more advertisers in a location for the same keywords, then it will increase the cost of Google Ads and similarly it may cost at prime time.
- Optimization & Management: How well is your campaign and keywords optimized also decides the cost of keywords. For the same position, the cost of a click can be different and it depends upon the keyword’s quality score. This QS depends upon many factors and it can be increased with better account optimization.