Gmail Ads – pricing comparison

Google ads launched GSP – Google Sponsored Promotion ads or Gmail Ads around 2015. These ads are very good especially when you have to build unhindered focused visibility to the customer without any diversion or limited competition from other ads.

In search ads you have competition from 5+ different players who bid for the same keyword. In GSP ads you don’t have that competition and it is more of a push ad than a pull with intent.

You can read more about the benefits of GSP ads and the best ways to execute here, here and here. Leveraging our experience running similar ads on various email service provider platforms in India over the last ten years, we do pricing comparison.

In the Indian context typical CPC for a GSP ad ranges from Rp 1.5 to Rp 2/- which is basically the cost per view. In the case of GSP, there is an additional metric of the user clicking on the ad and visiting the website. The creative with a clear call to action decides the effective cost per click to the website.

GSP- Google Sponsored Promotion Ads – Sample data

If the CTR is low at 1%, then the CPC is almost Rp 200/- which is very high but if the conversion rate from the click to lead is high the CPL is acceptable and also comparable to other platforms. Very relevant for B2B products where the ticket size is higher and the engagement period is longer.

On the other hand if you compare it with Youtube video ads where the cost per view is at Rp 0.25 or around that based on volume, we might feel that Gmail ads are expensive. However we have to compare metrics.

In a similar fashion used to have a mailer ad which was in some situations sold at CPO ( Cost Per Open). Players like Way2Online and other database providers also provide similar solutions. A mailer creative with a good CTR ensured that the Cost Per click was lower. For an e-Commerce client with a good CTR and a high conversion rate the CPS – Cost Per Sale was within acceptable limit.

We at UserTense digital work with clients especially in the Fintech, e-Commerce, Healthcare, education and B2B space leveraging Digital Marketing and other channels for large scale customer acquisition and drive sales.

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