Google Ads (formally Google AdWords) is a powerful advertising platform that drives targeted traffic to your website and encourages them to take action. It’s also one of the most affordable ways to advertise online, with costs starting from as little as £5 per day.

How much do Google Ads cost? The answer depends on your business, marketing objectives, and how you choose to implement them. Here’s everything you need to know about the cost of Google Ads:

How much do Google Ads cost?

There are five different types of Google Ads: text ads, image ads, video ads, shopping ads, and connection ads. The type of Google Ads you choose will greatly impact the cost of your campaign.

For example, the average cost per click (CPC) for text ads is between £1 and £2, whereas the average CPC for image ads is £2 and £3, depending on competition and targeting.

The good news is that when optimised correctly by using a knowledgeable PPC agency, you should achieve a high click-through rate (CTR), meaning that users are more likely to click on your ads and visit your website and this will also drive your cost per click down.

How to determine your Google Ads budget

Before you start planning your Google Ads campaign, it’s important to determine your Google Ads budget.

First, consider how much you’re currently spending on other advertising channels, such as SEO and Paid Social.

Next, estimate the future costs associated with running Google Ads, including the average amount you are willing to spend on each click. You can then use these numbers to calculate the total amount you’ll need for your campaign.

When you carry out your keyword research, using Google’s keyword planner, you should be able to see how much you will need to spend to run a competitive Google Ads campaign.

The different types of Google Ads

There are five different types of Google Ads, including text ads, image ads, video ads, shopping ads, and connection ads. The type of Google Ad you choose will greatly impact the cost of your campaign.

Text ads

This is the most common type of Google Ad, used by businesses of all types and industries. Text ads show a headline followed by one or two sentences. The headline is the most important part of your ad, as it should compel users to click on your ad.

Image ads

These are best suited for businesses with visual products, such as eCommerce companies that sell products that can be photographed.

Video ads

Google Ads allows businesses to create and run video ads, which are an increasingly important part of online advertising.

Shopping ads

Shopping ads are designed to connect users directly to your specific product page. This is an excellent option for eCommerce businesses that want to drive traffic to their product pages.

Connection ads

Connection Ads (also known as Google Display Network) let you show your ads on sites across the web. The connection ads are shown on third-party sites based on the interests of the users visiting those sites.

What is the average CPC for Google Ads?

CPC refers to the average amount that advertisers pay for each click on their ads. It’s important to understand the average CPC for Google Ads, as it largely determines how much your ads will cost.

The good news is that advertisers have a lot of control over their average CPC. You can adjust your bids to increase or decrease your average CPC. Your CPC is largely determined by how competitive your keywords are and your Click Through Rate (CTR).

Other factors that impact the price of Google Ads

There are other factors that impact the price of your Google Ads, including competition, your daily budget, quality score, and ad extensions.

Competition

The greater the competition for a certain keyword, the more expensive it will be. There’s no way to avoid this, but you can research long-tail keywords that have lower search volume but are less competitive and more specific.

Daily budget

If your daily budget is set too low, your ads may not run, or the campaign won’t be successful compared to the competitors with large budgets.

Quality score

High quality scores will result in lower costs for your Google Ads, whereas a low quality score will drive up your costs. The quality score is calculated based on a variety of factors, including ad relevance, landing page experience, and the expected CTR.

Ad extensions

Adding ad extensions to your ads, such as Sitelinks, can improve your quality score and reduce your costs.

Bottom line

The cost of Google Ads varies greatly based on the type of Ad you choose, your daily budget, and other factors. The best way to determine how much your ads will cost is to experiment with different budgets and ad types to see what brings in the most results for your business.

Hiring a knowledgeable and experienced PPC agency to manage your Google Ads campaign will ensure you are getting the highest possible ROI for your budget. Contact our PPC experts today for a free Google Ads consultation.