How Much Does Google Ads Cost?

A lot of business owners wonder:
How much does Google Ads (formerly AdWords) actually cost?
Well, I can give you a short and long(er) answer...You can get started with Google Ads for just $10 a day, which comes down to a monthly ad budget of about $300. Compared to other forms of advertising like print, tv or radio that's quite cheap don't you think?

Then I bet you wonder: what do I get in return? Well, that all depends on if you know what you're doing and how well you spend that money. Because as I'm sure you know:
You can only spend your money once!
So please make sure you know exactly what you're doing.To be honest, it's hard to come up with a budget without knowing your business. Because how much Google Ads costs greatly depends on the specific circumstances and performance of your business.

The costs of Google Ads can vary based on your goals, how big your company is and the desired setup. Below you can find a to the point summary of how much Google Ads costs.

First of all, to make sense of most of the things below, it’s advisable that you have some understanding of how Google Ads works. If you are unfamiliar with how the auction of Google Ads works, please see our explanation about it on the page “How Does Google Ads Work?” If you have done that, let’s continue!

The costs per auction

As you know from the explanation on "How Does Google Ads Work?", the Quality Score has a great impact on the costs per auction. Some people think that the maximum CPC advertisers set is by definition the amount they have to pay Google. This is not the case, advertisers only have to pay as much to keep their position. So there's no pay to win when it comes to Google Ads.

In the example below, an Ad Rank of 13 would be enough for Advertiser 4 to keep the first position.
Google Ads Auction Ad RankImage 1: Example of a Google Ads auction
To put it in a formula, the actual CPC is calculated as follows:
Google Ads Calculate Actual CPC

Looking at image 1 above, the Quality Score is shown by the number of stars. So Advertiser 4 has 10 stars meaning the QS is 10. Therefore, the actual CPCs will be as follows:
Google Ads Auction Calculate Actual CPCImage 2: Example of a Google Ads auction with actual CPC's
So, the Actual CPC of Advertiser 4 = 12 / 10 + $0.01 = $1.21.
The Actual CPC of Advertiser 2 = 10 / 4 + $0.01 = $2.51, etc.

There you have it, now you know how much Google Ads costs and how you can calculate the actual CPCs.
After working in retail ourselves, we know that owning an online store comes with certain costs. There’re costs of goods sold, logistics, overhead and marketing costs for instance. Therefore, it is critical to KNOW what you can afford on marketing like Google Ads before you decide to do it.
The good news is, you can actually calculate it!
But sometimes, store owners struggle to come up with the right calculation or forget to take certain aspects into account. That’s why we introduced the Profitable Revenue Calculator. It is specifically designed for retailers to estimate your required monthly budget and revenue based on some key metrics of your business.Just stop and think about Google Ads for a few minutes:
  • Do you actually know how Google Ads works?
  • Do you know what to do and where to start?
  • Is Google Ads suitable for your business and budget?
  • Are you confident you can do it yourself without wasting money?
  • Do you know what to do if the performance is not what it should be?
  • Are you willing to regularly invest your time and money to maintain your Ads account?
And this the point where most business owners usually say:
"Never mind! I don't know all that, I can't do it by myself."
Well, I have good news for you! We actually developed a program called Ultimate Google Ads Profit Program where we teach business owners how to be successful with Google Ads. We focus primarily on online store owners but the principles in the program apply to other businesses as well. If you think it's expensive, think again! Check out the page for more info.
Find out how to use Google Ads to increase your store sales and make a profit. Start to increase sales today!

Want To Learn How Google Ads Works And How Your Store Can Benefit?