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A Guide to the Cost of Google Ads

One question we are asked frequently at SEO Design Chicago is, “how much do Google Ads cost?” We understand why, given that many businesses these days are interested in pay-per-click (PPC) advertising. And when it comes to PPC advertising, most advertisers spend their budget on Google Ads. We’ve put together this guide to the cost of Google Ads to answer all your questions. We’ll cover the average cost of a single Google ad, how much you should spend on Google ads, and how to get started with a Google Ads campaign.

google ads cost

The Cost of Google Ads

Unfortunately, there is no simple answer to the question of how much Google Ads cost. Google Ads is the largest online ad platform, and it is also very customizable. That means you can decide how much you want to spend on Google Ads and when you want to spend it. This makes Google Ads a great platform for both local businesses and enterprise businesses.

The average cost of an ad on Google Ads is between $1 and $2 per click. Small to medium-sized businesses spend between $9,000 and $10,000 monthly on Google Ads on average. But don’t let those numbers scare you! One of the main benefits of Google Ads is that you can increase or decrease your ad spend anytime you want or need. Ultimately, the cost of your Google Ads and how much you spend is up to you.

How Businesses Spend Their Budget on Google Ads

Businesses, even businesses with the same budget, use Google Ads in many different ways. There are many different factors that can affect the price of Google Ads, including a business’ products, services, and industry. For example, higher CPC (cost per click) industries tend to spend more money on Google Ads.

A business in the Consumer Services industry, for instance, will spend an average of $6.40 for search network cost-per-click, and $0.81 for display network cost-per-click. However, a business in the Travel and Hospitality industry might spend about $1.53 for search network cost-per-click and $0.44 for display network cost-per-click. There also might be a higher price for Google Ads if you add in the cost of a PPC management service or PPC software program.

cost of google ads

How Google Ads Work

Before you get started with Google Ads, let’s discuss how Google Ads (formerly called Google AdWords) work. Google Ads uses an ad auction model that influences cost and ad placement. Whenever someone searches for a keyword on Google, the auction starts. If the user’s keywords match the keywords you used in your ad, your ad will qualify for the query.

During the auction, your CPC (cost per click) and ad placement are determined by a Google Ads ranking algorithm. The algorithm ranks your ad based on two factors: your keyword bid amount and the ad’s Quality Score. There are many ways you can improve your Quality Score. Then, if your ad wins the auction, it will appear on the search results pages above the organic posts.

Once your Google Ads campaign is running, you are far from done! Rather, you need to monitor and optimize your campaign continuously in order to get the best results. That is where PPC management services come in.

How Much to Spend on Google Ads

Another question we are frequently asked by clients is how much they should spend on Google Ads. Typically, our answer is, “How much is your budget?” Then, the client asks how much budget we think they should spend.

We can’t tell you exactly how much your Google Ads budget should be. There is no one-size-fits-all solution to setting a Google Ads budget. Rather than worrying about how much other companies spend on advertising, it’s important to consider how much you can and want to spend.

Your budget comes down to you and how much you want to invest in Google Ads. The better question is how and when you spend your Google Ads budget. Don’t be shocked if your monthly budget is actually spent within the first week of your campaign. This is why it’s important to know how and when your PPC budget gets spent.

The best part about Google Ads is that you only pay when someone actually clicks on your ad. No matter how many times your ad is playing or how many people see your ad, you only pay when a user clicks on the ad and visits your website.

Typically, digital advertising experts recommend that American businesses, especially in the e-commerce world, spend a minimum of $1,000 per month on Google Ads in order to see the best results. Another tip is to create a Google Ads budget that will get you a minimum of 2,000 clicks. This amount of clicks helps you determine if your campaign is worth the investment.

how much are google ads

How to Set a Budget and Bid for Google Ads

Now that you know how Google Ads work and how much you want to spend, it’s time to set your budget and bid amount. Make sure to stay realistic. Ultimately, the answer to “how much do Google Ads cost?” comes down to how much you are willing to spend. Luckily, Google Ads gives you complete control over your budget, your CPC bid, and your ad’s Quality Score. What you don’t have control over is your competition’s CPC bids and ad quality.

Before getting into the auction, it is time to do some keyword research. You need to find out how competitive your industry is, how competitive your niche is within your industry, and how competitive the keywords are within your specific niche. If you want to keep your cost per click down, you will need to be creative. For example, if you are in the insurance industry and you want to bid on “car insurance,” it will be very expensive since there are millions of search queries for that keyword each day.

If you want to spend less money on Google Ads, research keywords and find the ones that are cheaper and less competitive to bid on (though still relevant to your business.) One excellent strategy is to bid on long-tail keywords. A specific long-tail keyword has lower search volume and will earn you fewer clicks over time, but it will be cheaper and in all likelihood will find you good leads. The key is to use relevant keywords that will help potential customers on the search engine find your business. This strategy helps connect you with customers who are looking for exactly what you offer.

PPC Management Services

If you are ready to invest in Google Ads for your business, you will also want to consider investing in a PPC management company. A PPC agency like SEO Design Chicago develops, launches, and manages your PPC campaigns on ad platforms like Google Ads. Our team of paid search experts knows all the latest PPC advertising trends and not only manages and optimizes your campaign for you, but also recommends the best practices in order to maximize your campaign’s performance and drive more leads.

At SEO Design Chicago, our goal is to increase clicks and conversion for your website without driving up the cost of your campaign. If managed correctly, a PPC campaign gets results faster than SEO.

Some PPC services charge a flat rate, and others charge based on the percentage of your monthly ad spend.

PPC Management Software

If you prefer to manage your PPC ad campaign, there are also PPC management software options available to help you. These tools help you evaluate ads, optimize bids, and show your results.

One option for PPC management software is Wordstream. Some of these software options are free with only limited features and functions, while others cost between $15 and $500 per month.

how much does an ad on google cost

Are Google Ads Worth the Cost?

The short answer is, yes! Google Ads are worth the investment. While there are other effective PPC ad platforms out there like Facebook Ads, Google Ads is the biggest and best ad platform there is. When managed effectively, a Google Ads campaign will give you an excellent ROI. Plus, you can manage your budget and exactly how much you spend. While the results of a Google Ads campaign may vary from one business to another, it is virtually guaranteed that Google Ads is worth the cost. If you are still unsure, it’s time to start a Google Ads campaign and measure your ROI.

Start a Google Ads Campaign with SEO Design Chicago

If you are ready to start running your own Google Ads campaign, contact us at SEO Design Chicago today! We can help you plan, run, and optimize your campaign for the best possible results.

FAQs: 

  • How much do Google Ads cost?
  • How much do PPC management services cost?
  • What is the average cost of an ad on Google Ads?
  • How much do small businesses typically spend on Google Ads?
  • How do Google Ads work?

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