Posted on Jan 13, 2021

Highlighting the benefits of Google Ads, how much they cost and whether they can positively impact your business for the price you pay

When considering how best to spend your marketing budget to get you the best results, its always worth considering investing in Google Ads. However, for many new businesses who are unfamiliar with paid advertising, it can be daunting to know how to begin and how much to invest. 


This is where we can help. With our years of dealing with different types of PPC campaigns, in multiple industries and with hundreds of clients worldwide, we’re able to offer you the insight you need to answer your questions, including ‘How much do Google Ads cost and what can they offer your business in return? 


Spend for marketing campaigns is a reasonable consideration for businesses who are interested in how much they’ll be expected to spend to see results on Google, so they can plan their marketing budget accordingly. 


How do Google Ads Auctions Work? 

There is no one price fits all approach when it comes to Google Ads costsThis is because Google Ads are a truly customisable advertising option and you have the power to change how much you spend, where you spend it, on what device, whether to increase or decrease your budget, in real-time, and as and when you see fit. 


ad auction


You should be aware that there are varying factors that can influence how much you’ll be spending on your ad campaigns, such as: 


  • Industry – depending on your industry, you can expect to see different prices for Google Ads. For example, if your business lies in the legal, accounting, or real estate vertical, then the market is much more competitive and therefore is usually more expensive. This is because of the price of the services – a cost-per-click (CPC) of $50 could result in a customer spending anywhere between $1K – $10K with your business. 

On the other hand, businesses who operate in the entertainment industry can expect smaller CPCs, however, they must work harder to reach more customers to hit that $1K – $10K return. 


  • Customer lifecycle – your customer lifecycle can affect your costs. For businesses with larger ticket offerings, you must spend more time nurturing your clients to help them along the user journey. This may mean investing in multiple ad campaigns to help your business stay at the forefront of your customers minds. 
  • Current trends – current trends can have a huge impact on how much you’re spending per ad. For example, COVID-19 has affected all businesses, either causing their costs to rise or fall, depending on the industry. An example of this would be the fashion industry, which saw an increase in conversions and a decrease in cost during the pandemic.  


What is the Average Spend on Google Ads? 

To give you a better understanding of what costs you should be expecting when you invest in Google Ads, we’ve compiled some of the latest data to give you an insight into the average business spend. 

Today, 65% of all small to mid-sized businesses invest in PPC advertisingHere’s how the costs break down: 


  • Google Search Network: the average CPC for Ads in the Search Network is $1 – $2 
  • Google Display Network: the average CPC for Ads in the Display Network is under $1 


On average, small to mid-sized businesses will spend $9000 to $10,000 per month on Google Ads. However, this number does not factor in additional costs such as software used by the business. 

Below is a graph that demonstrates the average spend, calculated for each industry. 


average ad spend by industry


How Much was Spent on Google Ads Last Year? 

It can be beneficial to know how much was spent on Google Ads in previous years to help you piece together any emerging trends. According to SocialMediaToday, more than 7 million advertisers invested a total of $95 billion in PPC ads during 2017. In 2019, Google’s ad revenue amounted to almost 134.81 billion US dollars. 


As Google’s advertising platform continues to gain popularity with businesses of all shapes and sizes across the globe, more money will inevitably be invested in Google Ads. 


What can Google Ads Offer your Business? 

To summarise, we have compiled a list of all the ways in which Google Ads can benefit your business to help you better understand why you should adopt PPC campaigns as part of your marketing strategy: 


  • Return on investment – Perhaps the most important thing is the ROI that Google Ads can offer you. For example, let’s say that you have a product that costs £100 to produce, and sells for £200. You sell 6 of these products as a result of advertising them on Google Ads. Your total sales are £1200, and your Google Ads costs are £200. Your ROI is (£1200-(6x£100+£200))/(6x£100+£200), or 50%. 
  • Impressive reach – Google Ads works by getting your business seen on the first page of Google and often above the organic results. Whether you are selling products or services, you can utilise Google Ads to appear higher up in Google search engine results pages, therefore increasing your business reach and improving brand awareness. 
  • Target highly specific searches – Another great benefit of Google Ads is that they allow you to use targeted keywords and longtail keyword search phrases to increase your chances of appearing in your audience’s searches.  
  • Re-engage with your customers with retargeting – With Google Ads, you can retarget a customer once they have visited your site. When they visit your site, they get assigned a cookie code. When they leave your site, you can target your ads to appear to them on either the Google Display Networks or Google Search. 


With all the above in mind, Google Ads are definitely worth investing in. With its ability to reach an impressive audience and deliver profitable ROIs, your business should take advantage of Google Ads in 2021 and beyond. 


Do you Need Help with your New PPC Campaign? 

Managing PPC campaigns on your own can be a complicated and timeconsuming process. Contact Diginius today for all your paid advertising needs, including any questions you may have about Google Ads. 

Our team of PPC specialists will work closely with you to deliver a seamless PPC campaign that will provide your business with fantastic results.  

Interested in seeing our Diginius Insight software in action?

To request an online demo, please give us a call on +44 (0) 207 267 9322. Or use the form below and a member of our customer growth team will get in touch.