SEM can be a very cost-effective procedure for doing advertising, especially online. The price of SEM is determined by a variety of different factors, some internal and some external.
Internal factors: The internal factors affecting the cost of an SEM strategy include: • A highly competitive industry like finance comes with high cost-per-clicks as compared to a less competitive business. • The effectiveness of optimization of Google Ads accounts (and others) • The cost-per-clicks can vary a lot per keyword. It’s beneficial to find cheaper keyword alternatives when favorable if you have a tight budget • Budgets typically start as little as 5$ per day, however for larger campaigns this is easily also scaleable.
External factors: Taking into consideration the external factors provides a more accurate cost of SEM campaigns. These external factors include: • Managing, optimizing, and creating SEM accounts takes time and effort, whether it is outsourced or done internally. • The creation of individual landing pages, optimizing SEO, managing the growth of the website for better user experience. • Most suppliers charge around 20% of the Budget for the ads to cover Service costs. This however varies, as suppliers might also agree on success-based fees (or part of it).