Google Ads pricing can feel a bit like throwing money into a black hole. You launch a campaign, watch your budget tick down and can't help but wonder if it's money well spent. But what you'll pay depends on a bunch of factors, from your industry to where you're based. After all, advertising in Manchester isn't the same as marketing in Mayfair.
We take the guesswork out of Google Ads costs with clear numbers and straightforward advice. Learn what affects your spending, how to figure out a realistic budget and how to squeeze the most value out of every pound you invest.
What influences the cost of Google Ads?
Google Ads pricing isn't a fixed menu where you pick an option and know exactly what you'll pay. There are multiple factors that come into play, which can make clicks cost pennies or pounds. Let's look at what really drives your costs:
Industry competition
Different industries face vastly different costs. Legal services tend to have much higher costs per click, around £7.27, while arts and entertainment businesses enjoy much lower rates at approximately £1.22. The price gap exists because some industries (like legal, finance and insurance) have higher-value conversions that justify paying more for each potential customer.
Quality score matters
Your Quality Score is basically Google's way of rating your keywords, giving each one a score from 1 (pretty rubbish) to 10 (top marks). The closer you get to 10, the less you'll pay per click. In other words, Google rewards you for making ads that genuinely help people find what they're looking for.
Google evaluates three main components:
Expected clickthrough rate: How likely users are to click your ad
Ad relevance: How closely your ad matches what someone searched for
Landing page experience: How useful and relevant your landing page is to visitors
For example, a good landing page loads quickly, provides original content, makes navigation easy and delivers what your ad promises.
Keyword selection
The specific terms you target hugely impact costs. If you target broad, highly competitive keywords, your costs will be higher. Targeting more specific "long-tail" keywords with fewer competitors can help keep your budget under control.
If you're bidding on something like "business legal advice", it's more likely to put you against many competitors, while "business legal advice helpline" will likely face less competition and cost less per click.
Location targeting
Where you're targeting plays a big role in your ad costs. Competition varies hugely from city to city and region to region, which directly influences how much you’ll pay per click. For example, a plumber in central London might have to splash out a fair bit more than one based somewhere quieter, like a village in Cornwall.
Time of day
When you run your ads matters too, and showing ads during peak hours when competitors are also advertising can drive up your costs. Sometimes, advertising during off-hours can be more cost-effective, particularly for certain businesses.
Once you've got your head around these factors, budgeting for your Google Ads campaigns becomes a lot less guesswork and a lot more strategic. You'll know exactly where your money’s going, and you can start making decisions that get better results for your business.
Average costs by Google Ads platform
Not all Google Ads cost the same. Your costs vary based on which type of ads you choose to run. Here’s a breakdown of what you can expect to pay across the different Google Ads platforms.
Search network
The Search network places your text ads at the top and bottom of Google search results. These ads tend to be more expensive because they target people actively searching for what you offer.
On average, advertisers pay $2.69 per click on Search network ads, which converts to approximately £2.02 per click based on current exchange rates. The higher cost makes sense, as these users have high intent and are closer to making a purchase decision.
Display network
The Display network shows visual banner ads across millions of websites, apps, and Gmail. A click on a Display ad costs on average $0.63 (about £0.47), making it significantly cheaper than Search ads.
This price difference exists because Display ads reach people while they're browsing other content, not actively searching for your products or services. The trade-off for lower costs is typically lower conversion rates.
Shopping ads
Shopping ads appear with product images and prices when people search for items to buy. The average cost per click for Google Shopping Ads is $0.66 (about £0.50), making them slightly more expensive than Display ads but much cheaper than Search ads.
Shopping ads work particularly well for e-commerce businesses, with an average conversion rate of 1.91%. If you sell physical products, this platform offers good value for money.
Video ads (YouTube)
Video advertising on YouTube offers yet another cost structure. The average cost per click for YouTube ads is around $0.49 (about £0.37).
YouTube also offers a cost-per-view model, where you pay when viewers watch a certain amount of your video. The cost is typically around £0.02 per view, which is much cheaper per impression than other platforms.
Rising costs
Keep in mind that Google Ads costs have been increasing over time. WordStream data shows approximately 4% annual CPC growth across industries, while some accounts experience increases of nearly 12% per year..
A steady rise means that waiting to start advertising will likely cost you more in the future. Many businesses find it's better to begin testing and optimising campaigns now rather than delaying.
How much should you budget for Google Ads?
So your clicks might cost between 50p and £7, but how much should you actually spend each month on Google Ads?
Monthly budget recommendations
How much you should budget depends on your business and what you're aiming for. For smaller businesses or local services, experts usually suggest setting aside between £1,500 and £8,000 per month. Mid-sized businesses often land in the £7,000 to £30,000 range, and big enterprises might put anywhere from £20,000 up to £50,000 each month.
But remember, these numbers are just a starting point. Every business is different – even two businesses in the same field might find different budgets work best.
Minimum effective spend
While Google doesn't enforce a minimum spend, investing too little can still waste money (who'd have thought you could lose money by not spending enough?). You should set a budget that generates at least 10 clicks per day to collect meaningful performance data. With UK click costs averaging £0.75 to £1.50, most businesses need at least £500 monthly to get started.
For highly competitive industries like legal services or finance, that minimum rises significantly. You might need £50 to £100 daily to compete in these markets, equating to £1,500 to £3,000 monthly.
Test and increase approach
Many businesses think starting small is a safer way to test Google Ads, but this approach can actually backfire. Tiny budgets rarely generate enough data to tell you what's really working. It's a common reason smaller businesses often give up on PPC before seeing any real benefits.
Rather than dipping your toe in, it's better to commit to a reasonable budget for two or three months. That gives your campaign space to gather enough information for meaningful optimisation. You'll get clearer results and a better idea of how well Google Ads can perform for your business.
Calculate based on your goals
A smarter approach is to work backwards from your revenue goals. Google claims their ads bring an average ROI of 800%, meaning for every £1 spent, companies get £8 in profit.
If your target is £50,000 in monthly revenue from Google Ads, and you expect a similar return, your monthly budget would need to be around £6,250.
Remember that your initial campaigns won't be perfectly optimised. Give yourself room to learn and improve your results over time.
Is Google Ads worth it?
Google Ads isn't cheap, but it works if you do it right. Typically, businesses see around £8 back for every pound spent, which beats plenty of other ways you could spend your marketing budget. And unlike waiting months for SEO to kick in, ads can have you on page one in hours, connecting with customers exactly when they're looking to buy.
Start small and focused, find out what's clicking (literally), and gradually put more into what's working best. The upfront costs might make you wince, but when your ads start pulling in customers ready to spend, you'll see it pays off.
Ready, set, click.
Google Ads isn't cheap, but it delivers when done right. Know your costs, set realistic budgets, optimise and measure what matters. Whether you invest £500 or £50,000 monthly, success comes from smart targeting and constant refinement. The perfect time to start was yesterday. The next best time is today.
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