How much should you pay on Google Ads?
The average cost per click in Google Ads is between $2 and $4 on the Search Network. The average cost per click on the Display Network is under $1. The most expensive keywords in Google Ads and Bing Ads cost $50 or more per click.
Short answer: Google Ads budgets should be between $1000-$10,000/per month for small businesses. Long answer: Your Google AdWords budget depends on your industry, current market trends, your customer's lifecycle, and—of course—how you manage your Google Ads account.
Google Ads can be worth it for small businesses. There are a ton of benefits advertising on Google can offer including the ability to reach targeted and motivated audiences, a pay-for-performance pricing model, and an easy-to-track ROI.
So, how many impressions should you see as an early sign of success? Ideally, we recommend a minimum of 15 clicks per day per ad group (not campaign) and at least 200-300 clicks on the keywords per month.
Google Ads Budgeting
For most companies starting out, $500-1,000 a month in PPC ads may seem like a lot of money. In reality, that budget is a little low. Unless you're running a local pizza shop, $500 isn't going to go very far. Most industries have a $80-300 cost-per-lead when they are starting out with PPC.
Your monthly spend is less than your payment threshold (the balance amount that triggers a charge), such as in the following circumstances: Your last payment date was on August 1st. Your payment threshold is $50. Your monthly spend for August is $49.
There is also a general rule of thumb that you should aim at spending between 2-5% of your sales revenue on marketing. If your revenue were $1 million per year, your advertising and marketing budget should be $50,000 annually based on the 5% of sales revenue rule.
| PRICING FACTOR | AVERAGE COST |
|---|---|
| Ad Spend | $9000 to $30,000 per month |
| CPC (Google Search Network) | $1 to $2 per click |
| CPC (Google Display Network) | $1 or less per click |
| Professional Google Ads Management | $350 to $5000 or 12-30% of ad spend per month |
Google Ads management cost or other PPC management can be either paid by the hour or for a flat fee. Another common option is to charge a percentage of the ad spend. This is typically 10-20% of the ad budget. Pricing based on a percentage of ad spend is more common than paying by the hour.
Advertising Spend
If you want to maintain current revenue amounts, then 5% to 10% of sales allocated toward advertising may suffice. If you want rapid growth, then you may need to push that number higher, possibly to 20% or more depending on the industry and type of business you operate.
How much should I charge for a 30 second ad?
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60-Second TV Advertising Cost by Market in 2020.
| Platform | Average CPM |
|---|---|
| Billboard | $13-22 |
| Radio | $10-20 |
| Newspaper | $10-45 |
| Network TV | $20-30 |
Average cost per click in Google Ads, 2022
Your average cost per click, however, is determined by dividing total campaign spend by total number of clicks. As such, higher click-through rates are typically associated with lower costs per click. The average cost per click in Google Ads in 2022 is $2.96.
