The cost of advertising on Google

There are many settings and configurations on Google ads, all of which affect the cost of advertising on the platform. This article breaks down the average cost for Google ads based on industry, location and more.
Published on
March 16, 2023

The cost of advertising on Google is influenced by several factors, such as

  • Campaign type.
  • Location.
  • Industry.
  • Your Bidding Strategy.
  • Quality Score.

Campaign Type

Three of the most commonly chosen campaign types are:

  1. Google Search Ads. 
  2. Google Display Ads.
  3. Youtube Video Ads.

Several companies such as Statista, WordStream, and TopDraw conduct annual surveys to find the latest Google advertising prices. These surveys can help you get a rough estimation of what you will pay for Google advertising.

Looking at the table below, you can see that the average cost per mile and cost per click varies depending on the campaign type you choose.

It is important to remember that these Google ad costs are only estimations and are based on the average across all industries globally. To get a more accurate Google advertising cost, you will need to consider all of the other factors that influence the price of your ads.

Your Industry

The industry that you are advertising in will drastically impact the amount you pay for your Google ads.

Your location

Your target audience’s location age, gender, and income will also affect the cost of your Google ads.

Your Bidding Strategy

When setting up your Google campaign, there are many bidding strategies available to choose from. Each of these bidding strategies determines how much and what you spend on your Google advertisements.

  • Target CPA: Target CPA is an automatic bidding strategy that will automatically set the bid for your ad placement in an effort to maximise your cost per action. You can still control the overall cost of your Google Ad by setting a daily budget or an overall campaign budget.
  • Target ROAS: Similar to a Target CPA, a Target ROAS is an automatic bidding strategy that gives you the same level of control over your Google ad cost but focuses on maximising your return on ad spend, bidding higher on ad placements that Google believes to have a higher conversion value. If you use Target ROAS without setting a target, Google will try to spend your entire daily budget, potentially increasing your ad spend exponentially.  
  • Maximise Conversions: If you choose a maximise conversions bidding strategy, Google will automatically optimise your bid to get you the highest amount of conversions. Though this may result in a lower cost per conversion than a Target ROAS bidding strategy, this doesn’t necessarily mean that you will get a high return with your Google ad spend.
  • Maximise Clicks Bidding: With maximise clicks bidding, your bids will be automatically set to get the most amount of clicks for your desired budget. This can reduce your cost per click but could potentially increase your cost per conversion.
  • Manual CPC Bidding: The manual CPC bidding strategy gives you the most control over your advertising spend because you manually set the bid price per click. This bidding strategy is more appropriate for a more experienced marketer because you will need to calculate the appropriate bids based on your projected conversions and frequently change your bids with respect to the latest industry data and customer behaviour.
  • Enhanced Cost Per Click: An ECPC bidding strategy will adjust your manually set CPC bids when it is unlikely to generate a conversion. This can improve your cost per action. 

Ad Quality

The higher your google advert’s quality score, the less you will pay per impression and click. Though the exact impact the quality score has on the cost of advertising on Google is unknown, research by WordStream suggests that a Quality Score of 10 will cost 50% less for ads with a low score on average.

To improve your quality score, you can:

  1. Narrow your target audience.
  2. Use retargeting.
  3. Exclude users who have already converted.
  4. Create engaging headlines that improve your CTR.
  5. Make your CTA clear.
  6. Utilise fear of missing out (FOMO).
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