By: Jyll Saskin Gales, Google Ads Coach

Starting a new Google Ads campaign can be daunting, especially when it comes to figuring out your cost-per-click (CPC). How much will each click cost you? Is there a way to predict it? The answer lies in the Keyword Planner tool, but there's a bit more to it than meets the eye.

The Power of Keyword Planner in Google Ads

Google Ads' Keyword Planner is a valuable, free tool for estimating your CPC. You can access it under Tools > Planning in your Google Ads account. If you're a newbie, start by entering your website to see which keywords Google associates with it. If you already have keywords in mind, enter those directly instead.

Pro Tip: Don't forget to set your Location Targeting before hitting "Get Results." This ensures you're seeing data relevant to your target audience, whether it's a specific city or an entire country.

What does Keyword Planner tell you?

Keyword Planner doesn't give you a single CPC estimate; instead, it provides a range of what it might cost to reach the top of the page for a given keyword. This range can be confusing, but a simple way to estimate your CPC is to take the average. For instance, if the range is $3-$7, assume a $5 CPC. If in doubt, err on the side of overestimating, as it's better to have a larger budget than not enough budget.

Keep in mind that not every keyword will have a CPC range. In such cases, look at similar keywords for an estimate.

Are CPCs higher for new advertisers?

New Google Ads accounts often experience higher CPCs initially. This isn't a penalty, per se, but rather a reflection of your lack of Quality Score, a crucial factor in ad rank. Google doesn't have enough data to assess your ads' quality yet, so it plays it safe with higher bids. But rest assured, as your ads accumulate impressions and clicks, your Quality Score will improve, leading to lower CPCs over time.

Key Takeaways

• Use Keyword Planner to estimate your CPC, but remember it's just an estimate.
• Don't be discouraged by initial high CPCs in new accounts.
• Focus on creating high-quality ads with relevant messaging to improve your Quality Score and lower your CPCs.

Want to Stay Ahead in the Google Ads Game? Subscribe to my free Google Ads newsletter, The Insider, to get exclusive tips, tricks, and insights that will help you optimize your Google Ads campaigns.