A repetitive question we get from businesses is how much Google ads cost. To answer it simply and concisely, we would say an average of $100 – $10,000 per month.
But it is just the tip of the iceberg that is Google Ads. The actual and real costs may differ depending on various factors, such as market trends, technology, industry, etc.
Intrigued to know the effect of different industries on the Google Ads cost?
Hang on, our team of digital marketing experts have curated a list of some of the key factors influencing Google Ads Cost.
So, without further ado, let’s dive into exploring the factors impacting Google Ads Cost for a business.
Factors Impacting the Google Ads Cost
Google ads costs fluctuate depending on the industry as some industries require a huge sum of money to be invested in the campaign for it to work fruitfully. While others may not require much investment and can yield profitable results.
The factors affecting Google advertising cost can be the industry, Ad types, current trends, customer lifecycle etc.
· Industry
This might be the biggest and the most influential factor that significantly impacts Google ads costs. Industries such as accounting, real estate, legal etc. are very competitive in nature and hence require high costs for Google advertisements.
It is simple, really. The more people look for a particular thing or search online, the more businesses compete for the audience’s attention, the harder it will be for your Google ad to rank and therefore, it will require more money to be invested in the ads.
Here is an overview of the average Google ads cost by industry.
| INDUSTRY | AVERAGE CPC (SEARCH NETWORK) | AVERAGE CPC (DISPLAY NETWORK) |
| Auto | $2.48 | $0.53 |
| Real Estate | $2.37 | $0.75 |
| Advocacy | $1.42 | $0.65 |
| B2B | $3.38 | $0.74 |
| Consumer Services | $6.40 | $0.81 |
| Ecommerce | $1.17 | $0.42 |
| Education | $2.40 | $0.47 |
| Employment Services | $2.02 | $0.76 |
| Finance and Insurance | $3.44 | $0.86 |
| Health and Medical | $2.62 | $0.63 |
| Home Goods | $2.94 | $0.60 |
| Industrial Services | $2.56 | $0.54 |
| Legal | $6.75 | $0.72 |
| Technology | $3.80 | $0.51 |
| Travel and Hospitality | $1.53 | $0.44 |
· Ad Types
Another important factor is the type of Google ads that you are using for your business. Different Google ads and campaigns require different costs. Here are some of the top Google ads that businesses use.
· Google Search Ads
These Google ads are shown on search engine results pages when a user searches for a specific keyword. These google advertising costs vary depending on the type or size but they are very common and effective.
· Google Display Ads
These are visual ads that target users based on their user history, interests and preferences. Google Display ads are shown across the Google Display Network (GDN) websites and apps. Their costing is somewhat expensive as they are used by most businesses who are vying for the visual attention of their target audience so there is more traffic for them.
· Current Market Trends
The thing that keeps most digital marketers up at night: the dynamic market trends. Google ads cost also goes up and down based on these constantly changing market trends that cause businesses to regularly outline their budgets and costs accordingly.
A recent example would be the Covid-19 pandemic, which showed the business world a new kind of online exposure. The apparel industry faced the epidemic with an average cost per click (CPC) of $0.70.
One particular thing to consider here is that you do not always have to pay your maximum set bid on your Google ads. When someone clicks on your Google ads, that is the only time you will have to pay. Google ads calculate your cost per click (CPC) through this formula:
Ad Rank = CPC Bid x Quality Score
· Customer Lifecycle
The google ads costs also heavily depend on the overall customer lifecycle. If you are attracting potential customers to your business, it may take them several tries of clicking on your ads to actually conduct business with you.
With multiple visits and interaction with your ads several times, you have a possibility of converting that visitor into a customer. In comparison, your regular customers most probably would not need more coaxing from you and instead they would just buy from you in the very first go.
· Quality Score
Your Google ad’s relevance and quality make up the Quality score. It assesses and evaluates your keywords, landing page experience, and click-through rate (CTR). The quality score ranks your ad on a scale of 1 – 10, with 10 being the best possible rank.
Your Google ads cost can depend on your quality score a lot. Your aim should be to get 10 as your quality score. It will affect your bidding on relevant keywords. Having a higher quality score can enable you to bid low on keywords and secure you a higher spot in the search results. Especially, the ever-changing market of Dubai faces challenges everyday to keep up with the latest trends.
To stay ahead of the curve, you can reach out to any professional PPC agency in Dubai that will not only help you create result-driven Google ads but will also provide support throughout your ad campaign to ensure positive results.
Final Word
With numerous factors impacting Google ads cost, businesses should stay vigilant to keep up with the continuously changing market trends that will help them grab their audience before their competitors. Above, we have listed some factors that affect Google ads cost, and if you find trouble crafting a powerful Google ads campaign for your business, a professional Google ads or PPC agency in can help create and implement the right ads at the right cost.
FAQs
Q1. What is the average cost per click for Google ads?
The average cost per click for Google ads is $0.11 – $0.50.
Q2. Are Google ads profitable for my business?
Yes. Google ads are significantly profitable for your business if implemented correctly. If you are not familiar with Google ads, you should consult a PPC agency in Dubai to run ads for your business.
Q3. How much should I spend on Google ads?
The Google ads cost varies based on your industry, market trends, and ad type. You should spend according to your budget and the return on investment you expect.
Q4. Should I hire a PPC agency in Dubai for my Google ads campaign?
Ideally, it is advised to hire a professional and expert Google ads agency in Dubai that can help you in running your Google ads.
