How much do Google Ads cost? This is a long-standing question for any small business owner. The answer will vary based on your industry, audience, and ad strategy, but it all starts with understanding who your customer is and what they are searching for.
Digital advertising is a big part of any small business marketing plan, and when it comes to connecting with your customers, Google takes center stage.
Are Google Ads Worth It?
Google Ads is Google’s pay-per-click (PPC) advertising platform that allows you to bid on keywords so your ads can appear at the top of search results, as well as across the Display Network. It’s known for delivering a solid return on investment (ROI)—about $2 for every $1 spent—and is still the most popular PPC network among digital advertisers.
Because you only pay when someone clicks on your ad (not for the ad placement itself), Google Ads offers control over where your money goes. Whether you operate a local bakery or a nationwide service business, you can tailor your spending to reach the customers who matter most.
Get help with your Google Ads
How Do Google Ads Work?
To understand how much Google Ads cost, let’s start with the basics. Imagine a real-time auction every time someone searches on Google. If advertisers are bidding on a particular keyword, all relevant ads enter this automated auction.
Where your ad shows up depends on two main factors:
- Your Maximum Bid – The highest amount you’re willing to pay per click.
- Your Ad’s Quality Score – Google’s measure of your ad relevance, expected click-through rate (CTR), and the quality of your landing page.
This results in an Ad Rank formula:
Ad Rank = (Your Maximum CPC Bid) x (Your Quality Score)
A higher Quality Score (ranked 1 to 10) typically lowers your cost per click (CPC) and boosts your ranking against competitors with bigger budgets but lower Quality Scores.
Calculating Your Cost Per Click (CPC)
The actual cost you pay for a click is often determined by the Ad Rank of the advertiser below you, divided by your Quality Score, plus one cent:
CPC = (Ad Rank of the ad below yours ÷ Your Quality Score) + $0.01
This formula keeps Google’s ads auction competitive and rewards advertisers whose ads and landing pages are particularly relevant to users.
Consider this scenario:
- Maximum CPC bid: $4
- Ad Quality score: 10/10
Resulting in an Ad Rank of 40. Now, let’s compare with a competitor below you:
- Competitor’s maximum CPC bid: $8
- Competitor’s quality score: 36
This leads to an Ad Rank of 36 for your competitor. Applying the formula for your CPC:
CPC = (Ad Rank of the ad below yours ÷ Your Quality Score) + $0.01
This brings us to:
CPC = (36 ÷ 10) + $0.01 = $3.61
How Much Do Google Ads Cost?
So, how much do Google Ads cost? The cost of Google Ads varies and depends on several factors. On the Search Network (search results), the average Google AdWords cost per click (CPC) is between $1 and $2. For the Google Display Network (on other websites), the average CPC is under $1.
The most expensive keywords in AdWords and Bing Ads may cost $50 or more per click. These are usually highly competitive keywords in industries with high customer lifetime values, such as law and insurance.
Large-scale retailers can spend up to $50 million (or more) per year on Google Ads.
Small to midsize businesses typically invest anywhere from $1,000 to $10,000 per month in Google Ads, totaling $12,000 to $120,000 per year.
3 Key Factors Affecting Your Google Ads Costs
1. Industry
Your industry is the biggest influence on your Google Ads cost. For example, industries like real estate, accounting, and legal, typically have a higher cost-per-click (CPC) rate. This is due to the nature of those industries. A single client can bring in upwards of $1,000-$10,000, making a CPC of $50 a small price to acquire that client.
2. Customer Lifecycle
The lifecycle of your customer can have an impact on your Google AdWords cost. It may take potential clients longer to move through the decision-making process. They may visit your website multiple times, download content, or take part in a webinar before making the final move. Your business should stay top of mind throughout this journey.
3. Market Trends
Consumer trends and online advertising platforms are in constant flux. Keeping up with current trends in your industry and niche allows you to tap in and reap the benefits.
Managing Your Google Ad Costs
Your cost can also depend on how well you manage your account. You can use software or an agency to stay on top of things.
To keep your Google Ads costs low and returns high, try:
- Keeping a good Google Ad structure. This includes the right campaign type, ad group level, keyword selection, ad copy and ad extensions
- Evaluating your performance using the Google Ads dashboard and making data-driven optimizations
- Maintaining your keyword lists effectively with Google Keyword Planner
- Performing regular account audits on your PPC campaign
How Much Should You Spend on Google Ads?
Your Google Ads budget should reflect the value you get from each new customer. If a single sale is worth hundreds or thousands of dollars, a $10 or $50 CPC might still be profitable. Conversely, if you’re just starting out or have a lower price point, you can begin with a modest daily budget, track results, and scale up when you see a positive ROI.
Pro Tip: Online advertising—unlike print or traditional media—lets you test, adjust, and refine in real time. Try different keywords, ads, and landing pages. If something isn’t working, you can shift your spending to another campaign or pivot your strategy without wasting your entire budget.
Get help with your Google Ads
Is It Worth Paying for Google Ads?
Given Google’s 91.54% share of the global search market, it’s no surprise that brands keep investing in Google Ads. Clutch data shows 63% of people have clicked on a Google ad, 65% of users click on ads when they’re looking to buy. In short, it’s a powerful platform to build brand awareness and attract ready-to-buy customers.
Plus, PPC campaigns can deliver twice the visitors that SEO does—especially in the short run. If you need immediate traffic to a new product or service, Google Ads remains one of the fastest ways to get in front of potential customers.
What About Search Engine Optimization (SEO)?
Many businesses pair Google Ads with a search engine optimization (SEO) strategy to capture both paid and organic traffic. SEO can be a longer-term play, requiring ongoing content creation and site improvements. However, it pays dividends over time by consistently ranking your pages on Google’s organic results.
Data-Driven Content: Use insights from your top-performing ad keywords to create blog posts, guides, or videos on those topics. If “Best Plumbers in Los Angeles” converts well in your ads, make an in-depth article or list featuring that keyword to rank organically.
Long-Term Visibility: Once you start ranking in organic search results, you can reduce the amount you spend on ads for those particular keywords.
Other Advertising Prices & Channels
Your ad spending can also extend to platforms like Facebook, Instagram, TikTok, or even offline channels like radio or direct mail. Pricing varies widely by platform, industry, and region. The key is to test different channels, measure results, and invest in what performs best:
Research
Check your website analytics or conduct surveys to see where current leads come from. Focus on the channels that produce the highest return.
Test
Be prepared to run ads on a new platform for at least one or two quarters to gather meaningful data.
Analyze
Keep track of results (clicks, calls, form fills, revenue) so you can justify continued investment—or pivot to a different channel if necessary.
Ready to Start? We Can Help!
If you’re looking for professional support with Google Ads—from keyword research and bid management to landing page improvements—Scorpion can help. We’ve worked with thousands of small businesses for over two decades, helping them reach the top of Google results through both PPC campaigns and long-term SEO strategies.
Our tools and technology automatically allocate your advertising budget toward the best-performing keywords in your market. If something isn’t working, our platform will shift your ad spend to more profitable campaigns. We’ll also build and maintain a website that supports higher conversion rates, ultimately saving you time and money.
Get started today and see why so many businesses trust Scorpion to drive growth online. Let us handle your advertising while you focus on what you do best—serving your customers!
