You’ve probably heard of Google Ads and the benefits that it brings to businesses all around the globe. But, you’re probably also wondering – How much does Google Ads cost? Google Ads is a cost-effective pay-per – click advertising platform where businesses pay on the basis of interactions, such as a click. The average cost per click or CPC is $2.69 per click. However, CPCs range significantly from less than $1 to $20 +. Average small business using Google Ads has an ad spending of around $1,500 to $3,000 + per month.

The question, “How much does Google Ads cost? “It’s a tricky one because there’s really no one-size-fits-all answer. Although Google Ads is the largest online ad platform, it’s very customisation. On average, small and medium-sized enterprises can spend between $1,000 and $10,000 a month. In addition , the average cost of an ad from Google Ads is between $1 and $2 per click.

Google Ads is highly customisation, which is actually one of the greatest platform benefits. That’s right, you have complete control of how much you spend, and when you spend it. Plus, you can increase or lower your ad spending in real-time whenever you see fit.

So just how much does Google Ads cost?

The average cost per click (CPC) of Google search ads is less than $2.69. However, CPCs can vary greatly from as little as pennies per click to more than $20 per click depending on a number of factors, from the relevance and quality of your ad to the competition surrounding your chosen keywords. There is no minimum daily advertising spending, so businesses can spend as little or as much as they want to advertise on Google.

When researching how much Google Ads cost, it’s crucial to understand how the platform works. That’s because the design of Google’s auction system plays a role in your Google Ads cost and understanding this system can help you build a realistic campaign budget.

Google Ads uses an auction model to determine both ad placement and costs. An ad auction starts when a user searches Google for something. If the search query matches the keywords that advertisers actively offer, the eligible ads will be auctioned.

Ad placement and cost per click are determined by the Ad Rank advertisement in the auction. Your ad rank is based on two things – your maximum bid for that specific keyword, and the quality score of your ad.

What’s the Quality Score?

Quality scores are indicated by your keyword relevance, click-through rate, landing page quality and overall account performance. This helps to explain why competing companies will often have different costs per click on the same search term. Understanding the factors that impact your CPCs will make it easier for you to create better ads and see better performance.

Factors which influence the quality score of Google Ads include:

  • Keyword Relevance: a measure of how closely your keyword and landing page match the search intent of the user.
  • Click-through rate: The number of times your ad was clicked on compared to the number of times it was actually displayed.
  • Landing page experience: How well does the landing page provide relative content to the search query of the user.
  • Historical account performance: campaigns and ads with a well-performing history are considered to be good search results.

Now that we’ve been digging into exactly how Google Ads works, you can see why, “it depends” is a practical answer to the question, “How much does Google Ads cost? “When you advertise on Google Ads, you have (mostly) full control of your ad spending.

There are certain variables that you have direct control over, such as your maximum CPC bid and the quality of your ads, but there are also factors that you can’t really control, such as your competitors’ max CPC bids and the quality of their ads.

But that’s all in the Ad Auction. Before you even get to that point, you need to consider how competitive your niche is and how competitive individual keywords are in your niche. This is where you can be creative in order to keep your costs down.

How do you set a budget for Google Ads?

If you think Google Ads is going to work for you, it’s time to set the budget and bid amount. You have to remain realistic for this step. Again, answering the question, “How much does Google Ads cost” will all come down to what you’re willing to spend on.

Keep in mind that you have full control of your ad spending.

There are, however, factors that you can and can’t control. For example, you have direct control of your CPC bid and the quality score of your ad. On the other hand, the CPC bids and advertising quality of your competitors are factors that are out of your hands.

 

Google Ads is an affordable advertising platform for businesses with almost any budget. It has an average CPC of $2.69 and an average CPA (cost per purchase) of $48.96. Since advertisers pay only when users interact with their ads, and because they can control how much they spend on Google Ads, it’s a cost-effective way to generate leads and drive sales. However, it is important to hire an expert to help you with the cost of your Google Ads as many factors can bring up the cost per click of your campaign. If you keywords have a low quality score, your cost per click could increase monumentally, effectively wasting your budget. 

Need a Google Ads expert? Get in touch with one of our talented team members today.