How Much Does Google Ads Cost in 2024?

Google ads can cost from $10 to $10,000, and it entirely depends on your needs. But, different companies often claim to provide the service at a specific price. In case you find it confusing and deceptive, we are going to clarify how the Google ads cost varies this much in this blog.

You can control the Google ads cost with perfect optimization and research. But for that, you need to know the Google Ads benchmarks and the pricing factors as well, which are also described in this article. So without any more delay, let’s break everything down!

The main purpose of Google ads is to increase the traffic to blogs and landing pages. But not all the ads work in the same way! One’s success cannot determine others! Until now, we have found 6 factors that play a significant role in your Google ads cost in 2024. 

1. Industry Size

More competitive industries have higher search volumes and more businesses for top ad spots. It drives up costs as you compete for visibility. The best examples of industries with highly competitive keywords are legal, accounting and real estate. Their website can get higher CPCs. To understand how Google Ads costs vary by industry, you have to go through the inspection of some factors like—

• Products
• Services
• Competitive landscape

2. Market Trends

In this era, the consumer and online advertising trends are dynamic. To keep your sales ongoing, you must stay updated with the latest trends. Never forget that the habits of your audience may evolve. As consumer trends shift, average CPC can fluctuate just by making certain keywords more competitive than others.

3. Bidding

Your bid amount significantly changes Google Ads pricing. It's the maximum you are willing to pay per click. In this case, the Quality Score helps lower costs for higher positions.

Also, you can set bids manually, with one maximum CPC per ad group or individually for keywords. Automated bidding offers some strategies. Those are:

• Maximizing clicks
• Target impression share
• tCPA
• tROAS

One last piece of information is that you have to set bids high enough to compete with other advertisers effectively.

4. The Types of Ads

Google Ads costs vary based on ad type and strategy. We see different and unique characteristics in the search, display, shopping, video, and app ads. From our perspective, search and display ads often require higher bids due to their popularity.

Besides, your campaign strategy directly impacts costs. For example, high visibility during peak times increases costs. Balancing campaign goals with budget management is crucial for cost-effective advertising. 

5. Targeting Device

Device targeting indicates which devices see your ads among mobiles, tablets, or computers. It affects costs based on user numbers across devices. More users often mean lower CPC due to reduced competition. Targeting desktops might be more expensive due to fewer users.

In 2023, StatCounter said that mobile devices accounted for 53.66% of global website traffic, compared to 46.34% from desktops. Before setting your device targeting strategy, analyze your audience's device usage on your website. It will ensure you reach them effectively and spend your budget wisely.

6. Geo-Targeting

Geotargeting is a great way to focus your Google Ads efforts on specific geographic areas, from states to neighborhoods. This ensures your ads reach users in your target locations.

Geotargeting is especially valuable for capitalizing on mobile traffic and on-the-go shopping trends. By targeting specific regions, you can tailor your ad budget to where your audience is most active. For example, you might allocate more budget to searches in a particular city or neighborhood.

We often ensure organic SEO factors to improve SEO rankings. Our main goal is to have the CPC increased. When we work in Google Ads, Google calculates our cost-per-click (CPC) based on several key factors.

The main factors determining CPC include— auction time, max CPC build, ads ranking thresholds, competitiveness, contexts, assets, etc. Let’s break down the factors for more clear understanding.

Factor 1: Auction-Time Ad Quality

Google Ads calculates your CPC based on three things— expected click-through rate, close search intent, and the user-friendliness of your landing page. If you use high-quality landing pages, you can improve ad performance and potentially lower your CPC.

Factor 2: Max CPC Bid

Your maximum cost-per-click (CPC) bid is the highest amount you're willing to pay for a click on your ad. This bid influences how often your ad is shown and its position on the search engine results page (SERP). While higher max CPC bids can increase your ad's visibility, they may also lead to higher advertising costs.

Factor 3: Ad Rank Thresholds

Ad Rank thresholds are the minimum requirements for your ad to appear in a specific position. With this threshold, you can be assured that Google will show high-quality ads. Google assesses Ad Rank based on your max bid, quality score, and keyword competitiveness.

Factor 4: Competitiveness of Auction

In competitive auctions, multiple advertisers bid for the same keywords. Demand for keywords and the number of competing advertisers influence this. To succeed in such auctions without overspending, you must conduct a well-crafted bidding strategy and high ad quality.

Factor 5: Search Context

The context of a user's search, including their location, device, time, and query, affects ad performance. If you customize ads to match this context, you can improve their relevance and effectiveness.

Factor 6: Assets and Ad Formats

There are some specific Ad formats and extensions like site links, callouts, and structured snippets that can multiply your the visibility and appeal of the ads for best results.

For example, in a competitive auction where five advertisers compete for four ad positions, the advertiser with the highest Ad Rank (80) will be shown first, followed by the one with the next highest Ad Rank (50), as long as their Ad Rank meets the minimum threshold (40).

• Advertisers with Ad Ranks 80 and 50 will be shown.
• Advertisers with an Ad Rank of 80 pay just enough to beat the Ad Rank of 50.
• Advertisers with an Ad Rank of 50 pay enough to beat the minimum of 40.
• Advertisers with Ad Ranks 30 and 10 will appear below search results.
• Advertisers with Ad Rank 30 pays just enough to outbid the Ad Rank 10.

You have to understand the terms and definitions for precise calculation of your ad budget. There are things to consider like ad budget, bid, spending, and cost simultaneously. 

Key Terms of Ads Budget

Spending Limit of Ads Budget

• Daily Spending Limit: Prevents excessive charges on high-traffic days. It's typically twice of your average daily budget.
• Monthly Spending Limit: Ensures you don't exceed your budget over a month. It's calculated by multiplying your average daily budget by 30.4.

Google Ads is a popular choice, but many of our clients consider platforms like Facebook Ads, Bing Ads, and LinkedIn Ads. These platforms, along with SEO, can complement Google Ads. But keep in mind that SEO is often seen as an alternative, but it's not. Investing in both SEO and paid advertising can yield the best results.

You can have an estimation of your upcoming ads campaign using the ads calculator by Convoboss. The ads calculator gives some data metrics such as:

our Google Ads budget is entirely customizable based on your business needs. The optimal spending is dependant on factors like ad performance, industry, goals, and chosen tools. Yes, there's always a risk of budget loss, especially with test campaigns. 

But, the potential rewards of a successful campaign far outweigh the risks. If you need such successful help, we can become your partner! Our media buying team has advanced Google Ads management expertise. Contact us online or call +1 (307) 393-8955 to discuss your business's Google Ads pricing.

How much does Google Ads cost per month?

Google Ads monthly costs range from $100 to $10,000 for 45% of respondents. Your cost depends on CPC ($0.11-$0.50 for 61%) or CPM ($0.51-$1000 for 56%). In 2024, most businesses pay between these ranges on average.

What is the average CPC for Google Ads?

The average CPC in Google Ads is between $1 and $2 across all US businesses and keywords on the Search Network. On the Display Network, clicks are typically cheaper, which is averaging under $1.

What is the average cost per 1000 impressions for Google Ads?

The ideal CPM (cost per thousand impressions) varies by industry, budget, and pricing model. However, a common benchmark is $3-$10. Paying less than $3 per 1000 impressions generally indicates a favorable CPM.

How much do small businesses spend on Google Ads?

Small businesses typically spend between $100 and $1000 monthly on Google Ads. But, the cost can vary greatly depending on factors like industry, competition, and campaign goals. Some businesses may spend less according to the diversion of trends.

Is Advertising on Google Worth the Cost?

Yes. Google Ads offer a cost-effective way for businesses to reach a broader targeted audience. Their flexibility allows for easy adjustments to campaigns, making them a valuable tool for businesses of all sizes.

Is SEO Better Than Google Ads?

Google Ads offers top-page results for money, while SEO focuses on long-term Google rankings. If budget is a priority and time is less of a concern, SEO is a better option. But Google Ads is the way to go for immediate top-page visibility.