The pricing for Google Ads is based on several factors, including:
1. Click-Through Rate (CTR): The cost per click, which varies depending on the competition for your keywords and the relevance of your ads to the user's search query.
2. Impressions: The number of times your ad is displayed, which can be charged at a fixed cost per 1,000 impressions (CPM).
3. Conversion Rate: The percentage of clicks that lead to a desired action, such as a purchase or form submission. Costs are often calculated based on the cost per acquisition (CPA).
4. Daily Budget: The amount you set aside for your ad spend each day, which influences the overall cost.
5. Ad Extensions and Placements: Additional features like location targeting, ad format, and placement in search results can affect costs.
For managed services, agencies may charge a monthly management fee, often with a minimum contract term.