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How Much Do Google Ads Cost? A Quick Guide

How much does Google Ads cost? This is a common question for any small business owner who wants to grow their business. The answer can vary, but it all starts with understanding who your customer is and what they are searching for

Paid advertising is a big part of any small business marketing plan, and there is no bigger pool of potential customers than on Google. 

How Much Does Google Ads Cost?

So, how much does Google Ads cost? Google is the largest search engine out there and pricing for ads varies and is determined by several factors. However, the average Google Ads cost per click (CPC) is between £1 and £2 on the Search Network (Google search results). The average CPC on the Google Display Network (other websites) is under £1.

The cost of a click is determined by the popularity of the keywords. The most expensive keywords in AdWords and Bing Ads can cost £50 or more per click. These are usually highly competitive keywords in industries with high customer lifetime values, like law and insurance.

Some giant retailers will spend millions every year on Google paid advertising campaigns. Small to mid-size businesses have a smaller monthly ad spend. This is often in the region of £1,000 to £10,000 on their advertising efforts. That equals £12,000 to £120,000 per year.

Factors That Impact Google Ads Cost Per Click

Due to the unique formulas, we’ve just covered, there is no way to say exactly how much Google advertising costs. Pricing varies and depends on a few factors such as:

Your Industry

Your industry is the biggest influence on your Google Ads cost. For example, if your industry is real estate, accounting, legal, etc., you’ll have a higher cost-per-click (CPC) rate. This is because of the nature of the industry. A single client in these industries can bring upwards of £1,000-£10,000 depending on your business. This means a CPC of £50 is a small price to acquire that client.

Customer lifecycle

The lifecycle of your customer can have an impact on your Google AdWords cost. It may take potential clients longer to move through the decision-making process. They may visit your website multiple times, download content, or take part in a webinar before making the final move. Your business should stay top of mind throughout this journey.

Market trends

Consumer trends and online advertising platforms are never at rest. It is crucial that you keep up-to-date with current trends in your industry and within your niche. This way you can tap in and reap the benefits.

Managing your Google Ads account

Your cost can also depend on how well you manage your account. You can use PPC management software or a PPC agency to keep on top of things. To keep your Google Ads costs low and returns high, try:

  • Keeping a good Google Ad structure. This includes the right campaign typead group level, keyword selection, ad copy and ad extensions.
  • Evaluating your performance using the Google Ads dashboard and making data-driven optimisations
  • Maintaining your keyword lists using Google Keyword Planner
  • Performing regular account audits on your PPC campaign and more

How Much Should You Spend On Google Adwords?

Google Ads pricing is subjective depending on the expected revenue you hope to generate from a new customer. Advertisers in highly competitive industries that generate more revenue per customer are willing to spend more than $10 per click on average. Understanding the relative value between your per-customer revenue and how much you can spend on your ad campaigns is crucial.

If you’re just starting to run advertisements on Google, start with a low daily budget. Monitor the performance of your PPC campaigns. If you see a better return on investment (ROI), you increase your Google Ads budget.

This is one of the best things about online advertising. Traditional print advertising does not allow you to test effectively. However, online pay-per-click ads allow you to keep tweaking and adjusting as you like. This way you can see what works and what doesn’t so you can get the best ROI.

Before spending any money on Google Ads, you should:

  • Be sure to create attention-grabbing and high-quality ads.
  • Do keyword research by paying attention to what your customers and prospects are clicking on in your industry.
  • Put some work in on your landing pages for your products and services. Improving your landing page experience gives you a better chance of converting a prospect to a customer once they click on your ad.
  • Observe your competitors and see what is working for them. Find creative ways to replicate or create more compelling offers.

Do you need help with your website SEO to ensure sustainable, long-term success for your business? Get a free website review or get in touch today for more information about how SEO and paid ads can grow your business.

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