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How Much Do Google Ads Cost?

Apr 26, 2024

The cost of Google ads varies depending on several factors, including the competitiveness of your industry, the keywords you’re targeting, your target audience, and the quality of your ads and website.

With the cost of Google Ads starting from as little as £0.20, the cost per click can increase massively.

Find out more about the cost of Google Ads and what influences the price here.


What Are Google Ads?

Google Ads operates on a pay-per-click (PPC) model, where you’re charged each time someone clicks on your ad.

The actual cost per click (CPC) can range from a few pence to several pounds or more, depending on the competitiveness of the keyword, the industry and more. Google Ads allows you to set a daily budget, so you can control how much you’re willing to spend each day on your advertising campaigns.

Google Ads can be tailored to fit your budget and advertising goals and can range from anything from £0.20 to £5 or more.


What Affects the Cost of Google Ads?

The cost of Google Ads can vary massively depending on the competitiveness of the keywords being targeted, the industry sector, and your ad budget.

Some of the key factors that influence the cost of Google Ads, including:


Popular keywords tend to have higher costs per click (CPC) because of increased competition. Long-tail keywords may be cheaper but could also have lower search volume, so it is important to research and adjust keywords being targeted for Google Ads in order to get the best return on investment.

Quality Score

Google assesses the quality and relevance of your ads and landing pages, and a higher Quality Score can lead to lower costs and better ad positions.

Ad Relevance

The relevance of your ad to the search query affects its performance and cost. Irrelevant ads may have higher costs and lower click-through rates (CTRs) so it is key to continually assess your ads.

Ad Format and Extensions

Different ad formats and extensions (like site links, callouts, and structured snippets) can impact ad performance and cost.

Ad Placement

Ads that are shown on the top of the search results page tend to have higher costs compared to those at the bottom or on other Google properties. The closer to the top of the search results the ad is, the more clicks it will achieve but the higher the cost.

Bid Strategy

Your bidding strategy (manual or automated) and bid amount influence ad costs. Bidding higher can improve ad visibility but may increase costs.

Targeting Options

Geographic targeting, device targeting, and audience targeting can affect the cost of ads, and more specific targeting may result in higher costs as these are more likely to be effective if you are targeting locally.

Level of Competition

The level of competition in your industry and the number of advertisers bidding for the same keywords can impact ad costs and is one of the biggest influencers of the cost. For example, accounting and finance terms are very competitive and therefore have a high keyword ad cost.

Ad Performance

Historical performance metrics such as CTR, conversion rate, and ad engagement can influence future costs.

Ad Budget

Your daily and campaign budgets affect how often your ads are shown and can impact overall costs. It is important to repeatedly assess how your ads are performing and how much is being spent from clicks.

You should also set a clear ad budget prior to setting your Google Ads live to ensure you don’t go over budget, and readjust keywords if they are not performing as well as you hoped.


Average Cost of Google Ads

The average cost of Google Ads varies widely depending on factors mentioned above, such as the industry, keywords, targeting options, and competition. Generally, businesses can expect to pay anywhere from a few pence to several pounds per click achieved. Some highly competitive industries can have extremely competitive costs of £5 or more per click.

Industries like insurance, finance, and legal services often have higher average costs per click due to intense competition for keywords, whereas industries with fewer advertisers and lower competition may have lower average costs.

Google Ads operates on a pay-per-click (PPC) model, where advertisers bid on keywords and pay each time a user clicks on their ad. The cost per click (CPC) can fluctuate based on factors such as bid amount, Quality Score, and ad relevance.

While it’s challenging to provide an exact average cost due to the many variables involved, businesses can use tools like Google’s Keyword Planner to estimate costs for specific keywords and industries before launching their campaigns.

Continuously monitoring and optimising Google Ad campaigns can help businesses achieve the best possible return on investment from their Google Ads spending.


Help With PPC and Google Ads Management

Investing in PPC can completely change your business performance and help set you apart from the competition. At Maxweb, we offer paid search audits to identify what has previously worked well or poorly in any previous advertising campaigns you have conducted. Our team are experienced PPC and Google Ads experts.

We will then create a tailored strategy to help transform your business performance, consistently analysing and adjusting the ads to ensure that you get the best return on investment possible.

We have years of experience conducting successful Google Ad campaigns and work with our clients to get the best results possible. We utilise your ads budget as you wish, and are one of the few digital marketing agencies in the UK with a Google Partner Status.

If you are interested in Google Ads or want much information about how much Google Ads costs for your sector, get in touch with our team today.

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