How Much Does Google Charge To Advertise – You are here: Home / Blog / How much does Google Ads cost? Here’s How to Create Your Budget
In fact, according to Google, the average advertiser on its platform makes two dollars for every dollar spent. That means many people on the platform are doubling their investment.
How Much Does Google Charge To Advertise
So, how much will Google Ads cost your business? How much will it cost you to get a customer?
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In this article, we’ll cover the latest cost-per-click data for your industry as well as how to use Google’s own tools to predict your ad spend.
That way, you’ll know what to expect and can start using Google ads with realistic goals and expectations.
Google Ads (formerly AdWords) uses an advertising auction model, so there is no set cost per ad.
Companies create campaigns, and what they are willing to pay affects their ad rate (which controls whether or not their ad wins and is shown) as well as relevance and other factors.
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This means that the price of Google Ads is lower, depending on what your competitors are offering for the keywords, locations and audience you choose.
Depending on your industry, location and competition, keywords can cost as little as a few cents or up to several hundred dollars.
If you target high-competition keywords with high business interest (and high value), you’ll end up spending a lot of money. But the potential ROI is also much higher.
So industries with high customer lifetime value and a short sales process have become very competitive in Google Ads.
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Insurance, online education, marketing and advertising services, law, internet and telecommunications, are the most expensive sectors, with insurance leading the way with the highest price at $18.57 average CPC.
Companies in many of these sectors typically market subscription services where the customer pays a monthly fee over a long period of time.
Since one customer can be very valuable, this also increases Google Ads search PPC.
The statistics below show the average CPC of Google Ads, Bing Ads and other SEM platforms by country:
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Switzerland and Norway, the two most expensive countries, lead the charge, with an average CPC for paid search of $0.8 and $0.77 per click.
There are also large differences in CPCs in different regions, cities, and even neighborhoods within the same country for the same reason.
But since these higher CPCs usually indicate an increase in spending power, you shouldn’t avoid them unless you try them and see a negative ROI.
The combined average of display and search ads shows one trend where mobile clicks are cheaper.
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In Q1 2019, the average mobile CPC for a digital ad was $0.42, and one click on desktop cost $0.73.
All of this data should give you a good idea of what a single ad might cost you.
But, when you’re trying to answer the question of the cost of a Google Ads campaign, it’s not enough to look at the average.
One of the biggest mistakes in launching a PPC campaign is failing to do proper research before jumping in.
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Depending on your industry, you could pay anywhere from a few cents per click to twenty dollars.
To get the most useful data, you need to research specific keywords that your business can target in your area.
If you’re not sure what keywords to search for, try to figure out what people typically search for to find your business.
For example, do you run a flower shop? If so, people could search for “local florist” or “local florist.”
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If you still can’t think of anything, you can also use the keyword planner in Google Ads for free.
You can also enter your homepage or landing page (if you have one) to help get keywords for your website:
If you have a delivery service, you should set the location for your nearest city, state or delivery area. For example, we can put it in New York.
The results will show you average monthly search volume, as well as on-page offers.
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If you use your home page to filter, you will find a list of keywords aimed at the services you offer.
You can see historical monthly search volumes by hovering over the graph next to the average volume number.
Once you have this data at your fingertips, it’s time to pick some keywords that are relevant to your business.
Just check the box next to the keywords, and click the “Add keywords” button. (By default, the option is set to “Add to plan”).
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After you’ve added keywords, you can instantly forecast your campaign costs by clicking the “Plan summary” link in the sidebar.
Google predicts that for a campaign targeting the five keywords selected above in NYC, the average cost per click will be $3.18.
You can take the total cost and conversion with a grain of salt, as it does not take into account budget constraints.
If you run this ad campaign across New York City without a budget limit, you’ll spend about $21,000 for 390 conversions.
How Much Does Google Ads Cost
You also want to use some of that budget towards remarketing ads and other platforms and not just spend it all on one search ad.
You can’t make money from bad weather, unfortunately, so it can be difficult to find money to spend on Google Ads.
And if you don’t want to invest money back into your business or take money out of your bank account to do it, it has to come from somewhere.
In all seriousness, if you don’t have money in the budget and you can’t afford to withdraw from your bank account, you have one option:
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The easiest way to review a Google Ads campaign is to check the keyword report and find low-performing keywords.
To get the best profit from your ad campaign, you should stop using these keywords and spend more money on keywords that bring good returns.
If you use broad match keywords, you should also add any negative keywords you find as negative keywords.
You can do the same with places. Open the “Locations” tab and navigate to the “Geography Report” view.
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From there, you can choose how specific you want the analysis to be, for example, reducing the data by condition.
You can identify entire states, cities, or neighborhoods that are difficult to change. (A competitor may be closer, or you may have poor local delivery policies.)
Adjusting your bids for these businesses, or removing them from your campaign entirely, can help you spend more where your money makes a difference.
It’s not always as cut and dry as analyzing concrete numbers like platform X sales.
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So if you spend ten hours a week on social media campaigns, even cutting back by five hours can add tons of room to your budget.
To calculate this, you need to take your hourly rate and multiply it by the number of hours you spend on the job.
Let’s assume that your hourly rate or salary for the service is $50 and that you spend ten hours a week on social media campaigns.
Now you can use that extra time and money to invest in a new system, like Google Ads.
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Another effective way to create a budget out of thin air is to simply trade one platform for another.
The trick here is to analyze specific conversion data to see which systems are taking too much time and money and affecting your overall revenue.
The goal here is to figure out where you can trim fat, where you can eliminate budget-wasting efforts that aren’t generating sales.
If you don’t have target values set, you can still calculate your costs using the average lead value:
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Are staff and direct spend more than the average lead value or total monthly revenue of those channels?
The last option is to do a quick review of your existing expenses using the tool.
Most marketers will have different tools they use: keyword research tools, tracking tools, social planning and more. There really is a SaaS tool for everything.
For example, I use many tools every month that cost money: Evernote premium, Mailshake, Slack premium, Moz, and more.
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Now, if I needed room in my budget, I could probably cut a tool like Evernote just because it’s not necessary for my business. I can take free notes on it. I’ll just lose some functionality. But if that means spending an extra $50 on Google Ads, it might be worth it.
Try to remove tools that aren’t useful or that don’t help you convert users into customers and use that extra space to build a Google Ads budget.
Earlier in this post, I gave you an example of how much it would cost me each month for a sample campaign.
Instead, you can target the same keywords, but lower your budget and bid less, because your budget is limited anyway.
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By focusing on the right ads and landing pages, you can grow sales and results even with just a few hundred dollars a month as your budget.
Starting small is better internally
