I often have people ask me the cost per lead for their business before they start their Google AdWords campaigns, in other words, the most expensive keywords. To calculate the cost per lead, you take your cost divided by your conversions. However, if you don’t have any AdWords data, you need to know the average cost per click (CPC) of your keywords. For example, if your average CPC is $2 and the conversion rate is 5%, it means that you get 5 leads for every 100 clicks which cost $200. The estimated cost per lead is $40.
The CPC of a keyword varies from a few cents per click to over a hundred dollar per click. You can find out the estimated cost per click of a keyword using Google Keyword Planner. Keep in mind, some industries have very expensive keywords. WordStream recently shared some new data collected from the real world revealing the most expensive keywords in Canada in 2017. Here are the top 5 industries.
The rest of them are:
Now you know the most expensive keywords in Canada in 2017. Of course, CPC is not the only factor that determines your cost per lead. Google adjusts the cost-per-click bid price according to a number of factors such as quality score, your landing page, and the click-through-rate (CTR) of your ads.
If you have been running Google AdWords for some time or you plan to use it, book a 1-hour free consultation with our digital marketing experts. We’ll be happy to evaluate your current online marketing status and discuss how Google AdWords can help your business generate quality leads and sales.
