If you’re looking for a way to make your business stand out in the crowded digital landscape, then Google Ads could be the answer. Google Ads can help you to boost brand awareness, increase website traffic, and drive conversions.
But, all this comes at a price. If you’re wondering how much Google Ads costs in Australia, the short answer is: it depends. Factors like the industry you’re in, current trends, and the type of clients you attract can all influence how much you’ll pay for an ad. Basically, you could spend a little or a lot.
The secret is to set a budget, and then optimise your ads to make the most of that budget. In this guide, we’re sharing our insight into Google Ads pricing, what contributes to this cost, and how you can reduce these costs whilst maximising your results.
What are Google Ads?
Google Ads is an online advertising platform where you can advertise products or services across Googe’s online platforms. This includes in the search results, shopping, apps, Gmail, YouTube, third-party websites and more.
Available in a variety of formats, Google Ads allow you to target searches based on particular keywords that relate to your product or industry. For example, if your business sells mattresses and someone searches for ‘mattress for sale’ they will see your ad at the top of the page. When someone clicks on your ad, you will pay a small fee. This is known as pay-per-click (PPC) advertising. If they don’t click on your ad, then you don’t have to pay.
One thing to keep in mind is that your ads won’t be displayed if your competitors outperform you. To determine whose ad shows up, Google ranks ads based on two key factors: your maximum bid and your quality score. It’s not just about how much you are willing to pay, but also the quality and relevance of your ad to the search query. If you have attractive visuals, strong copy, and a user-friendly landing page, then you’ll perform better.
Why run Google Ads?
Did you know more than 8.5 billion searches are made on Google every day? This means it’s more important than ever to get your business at the top of the results. One way to do this is through Google Ads.
For most businesses, it can take years to climb through organic search rankings, even with dedicated SEO strategies. Google Ads let you jump the queue, giving you increased exposure and more immediate results.
Let’s break it down. Here are some key benefits of using Google Ads for your business:
- Increased exposure
- Improve brand visibility
- Increased traffic to your website
- Improved lead generation
- Boosted sales and revenue
- Competitive advantage
- Quick results
Now that you know the advantages of paid search marketing on Google, let’s dive into the costs.
How much do Google Ads Cost?
In Australia, the average cost per click for Google Ads is between $2 and $4. However, this can vary widely depending on factors such as industry, competitiveness and geographic targeting.
For example, industries such as legal services, finance, and insurance tend to be more expensive. If you’re bidding on legal keywords, you can expect to spend over $10 per click. For insurance, you’ll be paying around $13 per click. See more in the graph below.
Generally, businesses can expect to spend anywhere between $1000 and $20,000 per month on Google Ads to drive a sustainable amount of traffic. This can vary depending on advertising requirements and your budget.
Let’s take a closer look at some of the factors that can influence Google Ads costs in Australia.
What influences Google Ads costs?
- Industry: As noted above, the industry that you’re in can directly influence the price of Google Ads. Industries like law, finance, and insurance will be more expensive to advertise for than arts and entertainment.
- Competitive keywords: The competitiveness of the keywords that you are targeting can influence the cost. More competitive keywords will be more expensive. If your keywords have a higher search volume, then this can also increase the cost.
- Current trends: Current trends in the world and in consumer behaviour can influence the price per click for your ads. Even seasonal changes can impact what’s happening in your industry, and affect the competition for keywords.
- Customer lifecycle: Another factor to consider is your customer’s lifecycle when they are ready to purchase your product. For example, they might be coming to your business for an urgent essential purchase or a quick impulse buy, like when they need a plumber to fix a burst pipe.
If you’re selling more high-end or luxury products, it might take a longer time to convert your customer. They may need to see your ad several times before making their decision. This can impact how much you want to spend on your ad. - Geographic location: The location that your ad is targeting can significantly increase its cost. Ads targeting major cities face tougher competition and therefore cost more. For example, targeting cities like Sydney, Melbourne and Brisbane will be more expensive than cities with smaller populations.
- Device targeting: The devices that your ad targets can also influence the price. Mobile ads might cost differently from desktop ads due to varying user behaviour and conversion rates.
Googe Ads agency management fees
Another aspect to consider is whether you want to manage your Google Ads campaigns yourself, or partner with a dedicated digital marketing agency.
Agencies can charge based on the size of your ad spend, the number of campaigns, or a fixed monthly retainer. These fees can cover various services including keyword research, campaign setup, optimisation and monitoring.
Depending on the depth of service provided, agency fees can range from $800 to $2000 per month in Australia. Whilst this may sound expensive compared to doing it yourself, working with an agency can help you ensure that your budget isn’t being wasted and that your ads can perform at their best.
How can I reduce Google Ads costs?
If you’re looking for ways to reduce your ad spend, or are working within a tight budget, lowering your cost per click can help. Here are some ways to reduce your Google Ads costs:
- Refine your bidding strategy: If you find you’re spending too much on your bids, then try reducing them. Experiment with different bidding options to find the most cost-effective solution for your business.
- Research alternate long-tail keywords: Another way to save is to target long-tail keywords. These will be more specific to your brand and also less competitive to bid for, making them more affordable.
- Improve your quality score: Improving your ad’s quality score can help you perform better, without spending more money. To do this, optimise the imagery, copy and content on your ad and landing page. Make it more relevant to search intent and ensure it’s user-friendly.
- Implement geo-targeting: Targeting smaller geographic locations instead of major cities can help you reduce costs. This helps to reduce competition and increase the relevance of your ad. You can also try running local ads.
- Monitor and adjust regularly: Google Ads management shouldn’t be a set and forget. Remember to regularly monitor your ads and adjust them to improve their performance. This will help to ensure efficiency and cost-effectiveness.
Final Thoughts
If you’re considering starting Google Ads for your business, talk to us first. We can help you optimise your ads to ensure you are targeting the right people and make the most of your budget.
We will partner with you to help you grow your campaign from the ground up. Our team of Google Ads experts are dedicated to driving real results for your business.
Book your FREE Discovery Call today.
