Google Ads charges you based on the actions people take with your ads, but the specifics depend on the campaign type and your bidding strategy. It’s not as random as it might seem!
The Pain Point
Many advertisers feel unsure about how costs are calculated, leading to surprise bills or a fear of overspending.
The Answer
Google Ads charges you in one of these main ways:
Pay-Per-Click (PPC):
You’re charged every time someone clicks your ad. Most common for Search and Shopping campaigns.
Cost-Per-Thousand Impressions (CPM):
You’re charged per 1,000 times your ad is shown. Common for Display or Video campaigns focused on brand awareness.
Cost-Per-View (CPV):
Charged when someone watches your video ad for at least 30 seconds or interacts with it. Used in YouTube Ads.
Target-Based Billing:
Cost-Per-Acquisition (CPA): Charged based on the cost to achieve a conversion.
Target ROAS (Return on Ad Spend): Google adjusts bids to match your profitability goal.
Why Should You Care?
Understanding how charges work gives you control over your ad spend and helps you avoid unnecessary costs. Plus, it aligns your strategy with your budget and goals—whether that’s driving clicks, leads, or sales.
Blogging gives me a chance to share my extensive experience with Google Ads. I hope you will find my posts useful. I try to write once a week, and you’re welcome to join my newsletter. Or we can connect on LinkedIn.