How Much Does Google Adwords advertisement Cost
How Does Google Ads Work?
Google Adwords work the same way as an auction. Let’s see how this whole process works.
The ad auction begins when a user enters a search query, after which Google determines whether the query contains keywords that advertisers are currently bidding on.
If advertisers have bid on some of the keywords in the user’s search query, the ad auction begins. The purpose of the auction is to determine Ad Rank, or where each ad will be positioned. The auction determines the inclusion and placement of ads according to the Ad Rank formula based on two main factors – maximum bid and Quality Score:
Once your Quality Score and Ad Rank have been calculated, Google uses this data to determine how much you’ll pay each time someone clicks on one of your ads. This formula looks like this:
For perspective into your industry, check out this breakdown of CPC rates on Google Ads:
| Google Ads Pricing | ||
|---|---|---|
| Industry | Average CPC (Search Network) | Average CPC (Display Network) |
| Advocacy | $1.43 | $0.62 |
| Auto | $2.46 | $0.58 |
| B2B | $3.33 | $0.79 |
| Consumer Services | $6.40 | $0.81 |
| Dating and Personals | $2.78 | $1.49 |
| Ecommerce | $1.16 | $0.45 |
| Education | $2.40 | $0.47 |
| Employment Services | $2.04 | $0.78 |
| Finance and Insurance | $3.44 | $0.86 |
| Health and Medical | $2.62 | $0.63 |
| Home Goods | $2.94 | $0.60 |
| Industrial Services | $2.56 | $0.54 |
| Legal | $6.75 | $0.72 |
| Real Estate | $2.37 | $0.75 |
| Technology | $3.80 | $0.51 |
| Travel and Hospitality | $1.53 | $0.44 |
In most cases, industries with a higher CPC spend more on Google Ads. The consumer services sector, for example, pays an average of almost $7 per click, which can move businesses in the industry to increase their monthly Google Ads spend.
How Much Does a Typical Click Cost in Google Ads
In the US, if you average across all different types of businesses and keywords, the average CPC in Google Ads is between $1 and $2. That’s on the search network. On the display network, clicks tend to be cheaper, and the average is under $1.
However, in super-competitive markets, clicks can get much pricier. Let’s take a look at some of the most expensive keywords in Google Ads and Bing to give you an idea of how much a click can cost if you’ve got deep pockets.
isted below are the most expensive keyword categories in Google Ads, and the average cost-per-click of each. It’s worth noting that these are keyword categories, not actual keywords themselves – in some cases, the CPCs of keywords within each category may be higher than the averages stated:
- Insurance – $54.91
- Loans – $44.28
- Mortgage – $47.12
- Attorney – $47.07
- Credit – $36.06
- Lawyer – $42.51
- Donate – $42.02
- Degree – $40.61
- Hosting – $31.91
- Claim – $45.51
- Conference call – $42.05
- Trading – $33.19
- Software – $35.29
- Recovery – $42.03
- Transfer – $29.86
- Gas/Electricity – $54.62
- Classes – $35.04
- Rehab – $33.59
- Treatment – $37.18
- Cord blood – $27.80