Pricing and budget

What does Google Ads cost? How the pricing works

You pay when someone clicks

Standard search ads on Google cost nothing to show. You only pay when someone clicks the ad and lands on your website. This is called cost per click, or CPC.

You set your own budget per day. Google may spend a little more on some days and a little less on others, but over a month you won't go over what you have set.

The price is set in an auction

Every time someone searches, it is decided in an instant which ads are shown and in what order. Two things count most:

  1. How much you are willing to pay for a click.
  2. How relevant your ad and website are to what was searched for. Google calls this Quality Score.

This means a good ad that matches the search can end up above a competitor who bids more – and pay less per click.

Why are some keywords so expensive?

Keywords where one customer is worth a lot, and where many compete, get expensive. Think lawyers, insurance, estate agents or plumbers in the big cities. Keywords with fewer competitors, or local searches in smaller towns, are often far cheaper.

That is why it pays to be specific. “Plumber Elverum” is usually cheaper and better targeted than just “plumber”.

How to get more out of your budget

  • Choose keywords with buying intent, such as “book”, “price” or a place name. People who search like this are ready to buy.
  • Add words you don't want to show up for, such as “free”, “job” or “used”. Then you don't pay for the wrong clicks.
  • Limit the area to where your customers actually are.
  • Send people to the right page. If someone clicks an ad about gutters, they should land on a page about gutters, not the homepage.
  • Measure the enquiries, not just the clicks. A click is worth nothing if nobody gets in touch.

How much should you start with?

Start with a budget you are comfortable spending for a month, and look at what it costs to get one enquiry. If it is profitable, increase it. If not, adjust your keywords, ads and website before you spend more.

Wondering whether Google or Facebook suits you best? We have written about the difference between Facebook and Google ads.

FAQ

Is there a minimum budget for Google Ads?

No, you can start with a small daily budget. With a very small budget, though, you get few clicks, and it takes longer to see what works.

Do I pay for my ad to be shown?

For standard search ads you only pay when someone clicks. For some other ad types, such as video and banners, you can pay for impressions.

Why does my competitor appear above me even though I bid more?

Because Google also looks at how relevant the ad and the website are. A better ad can beat a higher bid.

How much does it cost to get help with Google Ads?

When Campaign Shark does it for you, you pay a fixed monthly price for the work, from NOK 1,499. You pay the ad budget directly to Google.

Adrian Siggerud

Written by Adrian Siggerud

Founder of Campaign Shark in Elverum. Helps businesses and agencies get visible online, with our own technology and ads on Facebook, Instagram, Google and more channels.

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Use the app from NOK 499 a month, or let us do your marketing for you.