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How much do Google Ads cost in 2024?

Updated: Jun 14

The cost of Google Ads in 2024 varies by industry and competition, but effective budgeting can maximise returns.

If you're looking to advertise your business online, chances are you've heard of Google Ads. With over 246 million unique visitors in the United States alone, Google is the go-to search engine for millions of people every day. Google Ads is an effective way to reach potential customers, but how much does it cost?

How are Google Ads costs determined?

Google Ads uses a pay-per-click (PPC) model, which means that you only pay when someone clicks on your ad. The cost of a click, however, is not fixed and can vary depending on several factors, including:

  • Keyword competitiveness: The more advertisers bidding on a particular keyword, the higher the cost per click (CPC).

  • Ad relevance: Google rewards ads that are relevant to the search query with a higher Quality Score, which can lower the CPC.

  • Landing page experience: Google also considers the landing page experience when determining the CPC. A good landing page experience can improve the Quality Score and reduce the CPC.

  • Bidding strategies: You can choose from several bidding strategies, such as manual bidding, automated bidding, and target CPA bidding, which can affect the overall cost of your campaign.

  • Budget allocation: You can set a daily budget or a total budget for your campaign, which can impact the number of clicks and impressions you receive.

How much do Google Ads cost?

The cost per click (CPC) can vary depending on the industry, location, device type, and ad position. According to a recent study by WordStream, the average CPC across all industries is £2.69. However, some industries, such as finance and law, have much higher CPCs, while others, such as health and education, have lower CPCs.

How much does Google Ads cost per month?

There is no set monthly fee for using Google Ads, instead the monthly cost will depend on the monthly budget you set.

The amount you should budget for your Google Ads campaign per month depends on your goals, industry, and competition. To calculate your monthly budget, you can use the following formula:

Monthly budget = daily budget x 30.4 (average number of days in a month) x expected CTR / CPC

For example, if you have a daily budget of £50, an expected CTR of 5%, and a CPC of £2.69, your monthly budget would be: £50 x 30.4 x 5% / £2.69 = £286

Setting a monthly budget can help you better control your spending and monitor your campaign performance. You can adjust your budget and bidding strategies as needed to achieve your goals.

Is there VAT on Google Ads?

In the UK, buying Google Ads means dealing with VAT, even though the bills come from Google's HQ in Dublin, Ireland, which is outside the UK's VAT territory. But, here’s the catch: you don't pay VAT the usual way. Thanks to something called Reverse Charge VAT, the responsibility shifts back to you to report and pay the VAT directly to HMRC. So, when setting your Google Ads budget, don’t forget to factor in VAT to stay compliant and keep your finances in check.

Talk to an expert

If you're looking for expert help with your Google Ads campaigns, contact our team today. We specialize in Google Ads management and optimization and can help you achieve your online goals.


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