So… how much are Google Ads? This is a question we hear commonly from clients, whether they’re new to the advertising world or are just looking to dip their feet into Pay Per Click (PPC). It’s a reasonable question to ask if you’re new to paid search. After all, those who are asking the question are wondering to themselves, can they even afford to advertise on Google?

However, when it comes to answering the question clearly, there is no exact answer. It depends!

The reason for this is that Google Ads (Previously Adwords) does not have a set price and is ultimately down to a set of factors.

How Do Google Ads Generate Costs?

Essentially, Google Ads charges you when a user searching on Google, clicks your ad, also known as Cost Per Click (CPC). When it comes to setting up your campaign, you choose keywords related to your business or services and pay the price of the click.

Customers searching for a product related query will have your ad appear on their Google Search Results page. The number of times your ad is visible is dependent on a whole host of factors.

Still asking questions about keywords and how much they cost? Don’t worry we go into more detail further on!

Why is the Cost so Unclear?

There are a set of variables when it comes to pricing up the cost of a Google Ads campaign: The industry, competition and location are all factors that adjust your spend!


Industries such as legal firms, real estate or insurance generally pay more when it comes to their Cost Per Click (CPC). Whereas, businesses that are niche within their industry, or just have lower returns on their products are likely to pay a lot less per click.

Did you know, the average CPC for the keyword ‘Insurance’ is $54.91!

Why is this? This is all down to the service on offer. A client could pay $54.91 for a click but yield a Return On Investment (ROI) of $1k – $5k or even more (or less) depending on the customer’s end journey!


When it comes to keywords, my number one advice would be to choose wisely!

The number of people bidding on a keyword directly affects the CPC. If it is a popular keyword it’s likely you will be paying more to outbid your competitors!

It might seem like a good idea to use a keyword that is popular because surely that means it’s performing well, right?

If your answer was yes, you probably are right… But! Why not look for keywords that are more specific to the searcher’s intent? That way you are more likely to have relevant traffic as well as reducing the competition for the keyword as these specific keywords are less likely to have as much search volume, resulting in more conversions for a lower price.


Are you targeting Central London? Or are you targeting the suburbs in Yorkshire? Location plays a part in the cost of the click!

As previously mentioned, the price of the click is determined by a variety of factors. The number of searches for a keyword might be super competitive in one location but not somewhere else.

Additional variables in Google Ads

When it comes to pricing up the cost of a campaign and all of the metrics that come with it, it can be easy to miss some of the most important variables. Your ad rank is made up of three different metrics: ad relevance, landing page experience and expected click through rate (CTR). These are all important factors in producing a good quality score for your keyword because a better quality score means a lower CPC! Here are some other variables to consider.

  • Different bidding methods
  • Alternative ad formats
  • Devices

Test, test, test! Trying out different methods and options Google Ads has to offer could result in you having a lower CPC!

How do I know what budget I need for Google Ads?

Ultimately, this is up to you. How much are you willing to spend? What industry are you in? Setting your budget will answer your initial question, how much are Google Ads?

Let me break it down a bit further.

Decide on your daily budget, it’s your choice. Work out an amount you can spend on your marketing.

Researching keywords can help to give you an understanding of how much you’re likely to spend each day. If your industry is competitive you might be looking to use a bigger budget to match competitors.

Pssst! Did you know that the Average Return On Ad Spend for Google Ads is 200%? This translates to 2$ for every 1$ spent!

Ultimately, the more you put in the more you’re going to get out of it. Google Ads accounts range from as little as a few dollars a day all the way into the millions.

Once you have decided on your daily budget, times that by 30.4 (30.4 is the average number of days in a month). This will give you a monthly budget.

Find out what works best for your account and what gives the best results. You can always increase your budget or reduce it!

Phew! You made it…

It can be a daunting process deciding on how much to spend with Google Ads.

My key advice would be to research, research, research! Gain a greater understanding of your market and how much competitors are paying for keywords.

Always monitor the performance of your campaigns and adjust your budget accordingly, there could be more conversions to be made!

The answer you have been waiting for, there is no set cost for Google Ads, you pay what you are willing to spend. This could be as little or as much as you’re willing to spend!

For more information about how we can help you with your Google Ads or any other marketing queries, get in touch with us today!