Google Ads

Google Ads Cost: A Complete Breakdown and Budget Insights

0 · by Dennis Moons · Updated on 13 July 2023

Whether you’re a seasoned marketer or a novice in the digital advertising waters, understanding how much Google Ads cost allows you to effectively manage your advertising budget and optimize your return on investment (ROI). 

And since the cost of Google Ads depends on various factors, I’ll delve into the most important ones, so you can make the most of your budget.

In this article, I’ll explain how the costs of Google Ads work, go into campaign specifics, cover the minimum budget you should consider, and evaluate whether Google ads are worth the investment.

Let’s get right into it.

How Much Does a Google Ad Cost?

There is no precise answer to the question: “How much do Google Ads cost?” 

Google Ad costs depend primarily on the number of clicks on your ad, however, there are other factors that can influence your click rate. Some of them are: 

Since type of click and type of campaign are the most important to understand, I’ll focus primarily on these two. 

We can break types of clicks and types of campaigns down into two categories: search and shopping ads and display and YouTube ads.

Search and Shopping Ads

Search campaigns display text ads on Google’s search engine results pages, while Shopping campaigns showcase product-specific ads. 

These types of campaigns get clicks from users’ intentional searches for a specific keyword or product. 

These ads are typically competitive leads, so their cost per click tends to be higher.

Display and YouTube Ads

Both of these campaign types operate within the Google Display Network. They reach users across different websites, phone apps, videos, or Gmail.

Display ads are usually visually appealing and they appear in various online locations, such as websites, social media, search engine results pages, mobile apps, video sharing platforms, online marketplaces, and others. 

YouTube ads appear while the user is watching video content on the platform. 

These ads reach audiences who haven’t been actively searching for your product or service, so they typically have a lower cost per click cost.

Understanding Campaign Specifics: How to Plan Your Budget?

While there is no definitive “average” for Google Ad cost, as it depends on many factors, it’s still important for you to have an idea of how much companies from your industry spend on Google Ads on average. This type of data can help you set benchmarks for your business’s Google Ads spend.

Moreover, when planning your next Google Ads campaign, you should carefully consider all of the campaign types and their objectives, as each has a different purpose and caters to different profiles of audiences.

For example, with search campaigns, you can rest assured that you are targeting the people who are actively looking for what you’re offering. 

These campaigns will often require higher budget allocation. They will also need to be more specific, as they’re catering to an audience that is already informed about your product or service.

On the other hand, with Display and YouTube Ads, you are interrupting people while they are doing something else, like watching videos or reading news. 

In this case, you are paying for views or impressions. These campaigns are usually focused on brand awareness and have a lower price.

What is the Minimum Budget for Google Ads?

When it comes to determining the minimum budget for Google Ads, it’s important that the amount you allocate allows you to create a successful campaign that will attract a lot of clicks and align with your business goals.

You may be wondering: is Google Ads free of cost? Unfortunately, no, it isn’t, but sometimes, you can get lucky and win Google Ads coupons. These special promotional codes are usually available for new users who have already spent some money on their campaigns. 

After spending some money, Google offers its new users coupons of a certain value, which they can deem for free Ads credit.

In my experience, the minimum amount of money to allocate for a Google Ads campaign is $10 per day. According to experts working at Google, the average daily budget for beginners should be between $10 and $50.

You can also set a total amount of budget (e.g. $30) and split it across multiple parallelly running campaigns. 

Just make sure to check your account each day to see how the performance of your campaigns progresses. 

By keeping your investments low at the beginning, you won’t suffer big losses even if some of your campaigns don’t perform well.

Finally, keep in mind that you can also change and adjust your campaign budget based on the campaign performance. 

This way, you can rest assured that your resources are optimally utilized towards achieving your desired advertising goals.

Is Google Ads Worth the Investment?

If you want to start using Google Ads to promote your products and services, you must be wondering: at the end of the day, are Google ads worth paying for?

The simplest form of answer I can give is yes, if you do them the right way. If you pay a visit to my blog, you can read these five case studies and learn how some of the top eCommerce brands use Google Ads for their success.

The return on investment in Google Ads depends on a variety of factors, as I have already described above. Sometimes, there is only so much you can do from your side to maximize your ROI.

Here are some of the things you can do to ensure the maximization of ROI for your Google Ads campaigns:

  • Align your Google Ads campaigns with your specific business goals (increasing brand awareness, driving more traffic, boosting sales, etc.). This will help you choose the right audience, format, and place for your ad.
  • Leverage Google Ads’ precise audience targeting options and tailor your ads for the right people.
  • Leverage Google’s extensive reach. As the most widely used search engine worldwide, Google allows you to tap into its extensive audience reach and display your ads to millions of customers worldwide who are actively searching for services, products, and information every single day.
  • Use Google Ads’ tracking and reporting tools to monitor the key metrics of your campaigns’ performance, such as clicks, impressions, conversions, and ROI. Use this data-driven approach to continuously optimize your campaigns and to ensure that your advertising budget is effectively utilized.
  • Leverage the combination of flexibility and control that Google Ads offer. Thanks to carefully developed perks and features of the platform, Google Ads allow businesses to remain flexible with their budget allocation, tweak their investments, and customize their campaigns. This gives businesses control over their Ads spend, content, bidding strategies, and the overall process of campaign management.

While Google Ads cost per click depends on a variety of factors and the specific circumstances of your business, they’ve proven to be a valuable advertising option for millions of businesses and organizations worldwide.

Google Ads are not free, but there are ways to optimize your spend, especially if you’re a new user. From leveraging Google Ads coupons to spreading your ads spend on parallel campaigns to test their performances, there are some things you can do to cut costs.

Before investing in Google Ads, make sure that you know what you want to achieve. Keep in mind that there are different types of clicks and campaigns that are compatible with different types of business goals. 

By making sure that your goals and campaigns are in sync, you can use all the benefits that Google Ads offer you to maximize your ROI.

Dennis Moons

Dennis Moons is the founder and lead instructor at Store Growers.

He's a Google Ads expert with over 12 years of experience in running Google Ads campaigns.

During this time he has managed more than $5 million in ad spend and worked with clients ranging from small businesses to global brands. His goal is to provide advice that allows you to compete effectively in Google Ads.

Follow him on Twitter or LinkedIn.


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