How Much Does it Cost to Advertise Your Business On Google

Most business owners are aware of the need to advertise on Google in some way or the other. Paid search results, pay-per-click (PPC), or search engine optimization (SEO), costs you money even though SEO is a non-paid and organic search result. So, when it comes to calculating the cost to advertise on Google, what you must ask yourself is what kind of advertising is needed for your business and how much of it is required to make an impact.

Quick Guide – The Cost to Advertise on Google

• The cost to advertise on Google AdWords is an average of $2.32 per click on the search network. The cost per click (CPC) of an advertisement on the Display Network is an average of below $0.58.

• The average cost per action (CPA) in an advertising search campaign on Google is $59.18.

• It costs $50 or more per click for the most expensive keywords in AdWords advertising and Bing Ads. These keywords are extremely competitive in industries that have high customer lifetime values (example: insurance and law).

• It costs between $9,000 and $10,000 per month for most average small businesses that use AdWords. That comes to $100,000 to $120,000 each year.

• An online Facebook ad will cost you $1.72 for average CPC. The average CPA on Facebook Ads is $18.68.

• It will cost you approximately $10 for the typical CPM on Facebook Ads.

• CPM for an ad on Instagram will come to approximately $5. However, the costs are rising since the Instagram platform is beginning to become more popular.

Now that you have the pricing details at a glance, let’s get into more detail.

Google AdWords’ Cost

Google offers the search network and the display network. Pay-per-click (PPC) ads appear above and below the organic search results for a user’s query on target keywords. If your set of target keywords match with that of the user’s search query (best restaurants in New York City), Google will display your advertisement.

Talking about Google’s display network, although advertisers are allowed to include rich media content such as video and animation in many display ad formats, most of the display ads are usually banner ads.

Google’s PPC Ad Costs

PPC ads are priced on a cost-per-click (CPC) basis. This means that an advertiser has to pay a small amount of money every time a user clicks on an ad.

CPC is calculated on the basis of every time your ad appears as per a process called ad auction. This ad auction is Google’s technique of deciding which ads to display when a keyword search is performed. It also decides the order to rank the ads in, and how much each advertiser has to pay per click. There are many factors that affect your CPC and other costs.

Google AdWords Display Ad Costs

Display ads on the Google Display Network and also other networks usually have much lower click-through rates (CTRs) than PPC ads.

There are three price options available while advertising on Google’s display network:

• Cost-per-click (CPC) – The advertiser has to pay only when somebody clicks on the ad. This will suit online ad campaigns where your aim is to get traffic to your website.

• Cost-per-thousand impressions (CPM) – This is pay for ad views (bidding for one thousand views) and can be used as an option if you want to create brand awareness campaigns by getting your ad clicked a maximum number of times by your target audience.

• Cost-per-acquisition (CPA) – Once you set a target CPA, you can pay as and when your ad leads to a conversion. Use this option only if your end goal is sales or other online transactions.


Search Engine Optimization

Google AdWords is a great way to get your website to rank on Google’s first page. However, it is only an immediate and short-term strategy. Search Engine Optimization (SEO) focuses on growth, long-term maintenance, and strategy. It is best to use a combination of both SEO and PPC to satisfy your business goals.

SEO too costs money especially if you opt for an external source to help you update your content on your site. A budget can be determined only after you completely understand the impact of SEO on your business.


It is difficult to list down the exact cost to advertise on Google as it depends on a number of things including the size of your target audience and the competitive nature of your industry.


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