How much does Google Adwords Cost? [4 Step Guide]

How much does Google Adwords cost? (Now Google Ads)

Is it a gold mine like they say or a money pit?

What most business owners want to know, especially those who are new to PPC advertising, is how much is Google Ads going to cost me?

After all, most marketing efforts usually come at a price.

Put simply, Google Adwords (Now known as Google Ads) can be the fastest way to generate wallet-out ready-to-buy customers, if managed correctly.

Walk into a PPC campaign without a clear strategy and you’ll soon be swimming in debt.

But you won’t have to worry about being another statistic or becoming another case study because…

We’re going to tell you everything you need to do in order to run a successful and profitable Google Adwords campaign.

First off, to set the record straight, there is no one-size-fits-all solution or answer to this question.

Pay per click advertising is as the name suggests, you pay for each visitor that clicks on your ad.

The average cost per click will vary depending on your target market and industry.

Clicks can range anywhere from a few cents all the way up to $10, and even more.

The most expensive industries have been known to reach as high as $100 per click.

That being said, the cost per click and variations in keyword costs can also vary greatly within the same industry.

This is why a well-optimised campaign is essential for success.

A well-researched PPC campaign can see an advertiser pay up to 90% less than their competitors who may be pushing a poorly run campaign.

This is where the fruit lies.

The biggest mistake business owners make is failing to understand all the pieces of  PPC advertising before diving headfirst into a campaign.

You’re destined to fail from the get-go.

But don’t let this discourage you from at least trying to make bank. You don’t need to spend millions to make millions.

Even a small monthly budget of $1,000 coupled with a bulletproof Google Ads campaign produced by a Digital Growth Marketer can bring in tremendous ROI.

This is where an experienced Google Adwords management expert can save you time, money and a world of headaches, BUT – rest assured we’re going to answer some of the burning questions right now.

How much should I budget for Google ads?

We knew this would be your next question and it depends on what you’re advertising.

How to plan a Google Ads budget?

To calculate your daily budget you’ll first need to figure out what your budget will consist of.

The first step is to look at the cost of the most appropriate keywords you want to be targeting.

To begin, go to Google and start searching for the most obvious terms related to your business.

For example, if you sell swimming pools — start typing this in Google search and you should notice autocomplete suggestions, as seen below.



If you’re not sure or want more suggestions you can use the Google Keyword Planner and find suggestions based on your landing page or website.

This will give you a better understanding of what your prospects are searching for online.

Note: You’ll have to create a free Google Ads account in order to open this menu.


Open up the keyword planner, it should appear under ‘Planning’ as seen below



It will take you to another screen, from here click on ‘discover new keywords’.




Click on the ‘start with a website’ tab. 

From here you can input your website and the keyword planner will return a list of targeted keywords related to your products and services.

In the columns to the right, you’ll notice the total search volume, bid cost (low range) and bid price (high range).

The cost of high volume searches may come as a shock, however, it’s important to keep in mind high search volume doesn’t necessarily guarantee your ads will convert.

This is where long-tail keyword phrases can prove to be highly profitable.

For example, ‘swimming pools Perth cost’ targets a specific intent and is more likely to generate ready-to-buy customers as opposed to targeting just ‘swimming pools’.

For the time being, ignore the bidding price, we’ll get back to that in a moment.

Create a spreadsheet with four headings and list the keywords and phrases you think are most relevant:

  • Keywords / Phrases
  • Search Volume
  • Competition
  • Bid cost (low range)
  • Bid price (high range)

Bonus tip: If you find a term that’s relevant to your business, with high search traffic — add the location of your city at the end of the search term.

These phrases tend to indicate ‘commercial’ search intent, or otherwise, a searcher who’s further along their buyer’s journey and is more likely to make a purchase soon.

Anyway, back to the spreadsheet.

To estimate the cost of each keyword you need to consider both the high range and low range to work out averages.

Now, do you remember when we mentioned how a well-optimised campaign can see advertisers pay up to 90% less than a poorly run campaign?

Well, this is where Quality Score comes in.

Based on the level of competition and quality score of phrases in your campaigns, your cost per click can vary, either favouring the lower ranges or higher.

A Google Adwords management agency’s role here is crucial, because maximising the quality score can lead to exponentially higher profits.

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