Again, the answer to this question will depend on the unique characteristics of your business. For example, say you are an automotive parts manufacturer running an ad for custom brake pads that cost $125. For each user who clicks your ads and completes your desired action (making a purchase), that is $125 you make from that ad (minus any costs associated with the campaign).
This question is more difficult in service-based industries where upfront prices are not the norm. Personal injury lawyers, for example, can really only tell how much a client’s case may be worth after meeting with him or her and reviewing the situation. The average fee for successful injury claims is 33.33%. So, when it comes to PPC ads, the rate at which each one may be established, but it is unlikely you will know how much a user’s click is worth monetarily until they actually become a client.
As for how much you pay to run your ads, this too depends on several factors:
The keyword terms/phrases you’re targeting
Competition on those keywords
The times of day you’re running the ad
Target geographic area
Seasonality
Some platforms may also consider your ads experience to determine how much you have to pay for clicks. For example, Google determines your Quality Score by assessing the expected click-through rate of your campaigns, rating your landing page, and comparing the relevance of your ad to the target keyword. The higher your quality score, the lower your cost per click (CPC).
Google Quality Score and other ratings demonstrate the importance of hiring a qualified agency to help you with PPC ads. Lack of experience can lead to a waste of time and money. But, with the right partner, you should see better returns, more leads, and an influx of sales.