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Cost of Pay Per Click Advertising on Google 2021

Digital Marketing

What is the cost of PPC on Google? Perhaps, it is the most-asked question, especially by the ones who are new to paid search. Maybe they are not sure whether the pay-per-click is right for them. Or, they simply want to know how much they need to shell out to advertise on Google.

Whatever the reason behind the question is, there is no one-size-fits-all answer. Reason? Google Ads depend on numerous variables, such as Ad relevance, bidding methods, auction-time quality, PPC keywords, etc. Or, you can say that Google Ads is something you can customize.

To get things started, let’s first shed some light on how Google Ads work.

How Does Google Ads Work?

Google Ads use the auction model to determine the cost and Ad placement. When a user searches for something on Google, the search engine checks whether or not the search query contains keywords that advertisers are bidding on. If the query matches any of the keywords, the eligible Ads go for the auction.

In the auction, the Ad rank determines the CPC and its placement. The rank further depends on two things, i.e. the Ad’s quality score and the maximum bid for a particular keyword.

Furthermore, the quality score is based on the relevance of your Ad to the keyword, its CTR, and the relevance, quality of the landing page. Google calculates the Ad rank using formula-

(Maximum bid on CPC) x (QS of the Ad)

Now, Let’s assume that the maximum bid for a keyword is $2 and the QS is 8, the Ad rank will be 16. Whoever gets the higher Ad rank wins the top advertising space.

Besides, Google also uses Ad rank to find your actual CPC with the formula-

(Ad rank of the Ad below yours) / (QS of your Ad) + $0.01

This means you end up spending less and maintain a higher Ad rank if the QS of your Ad is good enough.

How Much A Click Will Cost You In Google Ads?

In Google Ads, pricing depends on the competition and intent of the keywords you are bidding on. Depending on the competition trend in the market, some keywords are more expensive to bid on than others. This is something you should realize before starting a pay per click campaign.

However, the CPC (on an average) on Search Network is between $1 and $2. But, they may get pricier than $2 in competitive markets, like accounting, legal, insurance, etc. Also, when it comes to Display Network the clicks are cheaper, i.e., less than $1.

How Much Will It Cost To Appear On The First Page Of Google?

Well, it can be easy or hard depending upon the keyword you are targeting. Suppose you target a keyword that has no competition. In this case, you can make an advertisement and get on the first page of Google.

But, keywords that have numerous Ads already running are difficult to get into the spotlight. Here, a general rule of thumb is, pay more to rank higher on Google.

Furthermore, if the keyword planner gives you an average price, the other marketers are paying, you will likely pay more. It is recommended to pay 30-50% additional price per click and see the result. Sometimes, you get straight to the first page, while at the other times, you may be on the second page.

Thus, in order to know exactly how much it will cost for your Ad to appear at the number one spot is to experiment with bids. If you have to pay an additional 50%, don’t worry! You can still decrease the CPC without adjusting the bid price.

Focus On Improving Your Quality Score

As we have discussed above, Quality Score is an important metric that affects the money you spend on the CPC. If you have a good Quality Score, you end up paying less per click as compared to the other advertisers. If your QS is low, it increases your CPC, and you might have to pay an additional 100% to compete with the advertisers.

Therefore, it is crucial to pay attention to your QS.

Make sure that your Ad, as well as the landing page, is relevant to the targeted keyword. If it isn’t, it is less likely to get clicked or paid. Optimize your landing page and Ads to add the focused keyword for a better QS.

What Other Factors Affect The Google Ads Pricing?

Apart from PPC keywords and Quality Score, below are the top factors that influence the CPC-

There are 3 Factors that affect the google ads pricing

  1. Location Targeting
  2. Network Targeting
  3. Device Targeting

Location Targeting

Targeting different parts of the world has a significant impact on the cost of clicks. The most developed countries, like the US, UK, France, etc., have the highest CPC due to high-quality traffic. Thus, while setting your campaign, keep a close eye on the country you are targeting and think if you really need to target them.

Network Targeting

Google has two networks, Google Search and Display Network. Google Ads are what you see when you search for something on the search engine. On the other hand, the Display Network allows you to display Ads using other people’s website.

Clearly, the two networks have different prices and affect the cost of advertising on Google. Search Network is a bit expensive because of high-quality users. You can try Display Network if you want cheaper traffic.

Device Targeting

Device targeting also plays a pivotal role in the CPC of Google Ads. It can be divided into mobile, laptop, and desktop traffic. Though desktop traffic is the priciest, sometimes mobile traffic can be pricier depending upon the market. You can experiment with all types of traffic to know which works best for you.


Now that you know how Google Ads work, how much it charges for CPC, and what factors affect the price, it’s time to decide if it is worth your time or budget. If you want to give it a try, build your Google Ads budget first. Improve your QS, optimize your Ads and landing pages to include the right keywords. You never know, you might pick high-quality clicks for low cents!

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James Joes

Mini Business News is a blog where we provide lots of business tips and other social statements. Articles that benefit the whole world

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