The cost of Google Ads (formerly known as Google AdWords) depends on several variables. Google Ads is based on an auction system that rewards businesses that have high-quality ad campaigns with lower costs and better ad placement.
You can exercise tight control over how your Google Ads budget is spent using tactics like ad scheduling, geotargeting, and device targeting.
The average cost per click in Google Ads is between $1 and $2 on the search network. The average CPC on the Display Network is under $1. If you’re advertising in Display, try using our free Smart Ads Creator to build pristine new display ads in minutes.
The most expensive keywords in Google Ads and Bing Ads cost $50 or more per click. These are generally highly competitive keywords in industries that have high customer lifetime values, like law and insurance.
Giant retailers can spend up to $50 million per year on paid search in Google Ads.
The average small business using Google Ads spends between $9,000 and $10,000 per month on their Google paid search campaigns. That’s $100,000 to $120,000 per year.
You can think of ad budgets in the same way you would about any other budget. You start with a core figure that will represent the majority of your ad budget and allow for a little leeway in case things change or something goes wrong. One way to start budgeting a PPC account is on a per-campaign basis.
Each campaign has its own unique settings tab in Google Ads. This allows you to control specific parameters of each campaign independently of other campaigns in your account.