Google Ads (AdWords) Costs – What You Need to Know

Google Ads (formerly AdWords) works on a pay-per-click (PPC) model—meaning you pay when someone clicks on your ad. But the actual cost depends on several factors.

1. Average CPC (Cost Per Click)

• Search Network: $1 – $3 per click (can go much higher in competitive industries)

• Display Network: $0.25 – $0.75 per click (cheaper, but less targeted)

• YouTube Ads: $0.10 – $0.30 per view (for skippable video ads)

2. Most Expensive Industries

These industries pay the highest CPC due to intense competition:

• Legal: $20 – $100 per click

• Insurance: $30 – $70 per click

• Finance: $15 – $60 per click

• Marketing/Online Education: $10 – $40 per click

3. How Google Determines Your Ad Cost

Your cost is influenced by:

• Your bid (the max you’re willing to pay)

• Quality Score (how relevant and helpful your ad/landing page is)

• Ad Rank (combination of bid + Quality Score + expected impact)

4. Monthly Budget Examples

Here’s what you might expect depending on your business size:

• Small local business: $300 – $1,000/month

• Medium business: $1,000 – $10,000/month

• Large campaigns: $10,000+/month

Tips to Lower Costs

• Improve ad relevance and landing page quality

• Use negative keywords

• Target specific geographic locations

• Run A/B tests on ads

• Focus on high-intent keywords