How Much Does Google Ads Cost in 2024?
What is Google Ads?
Google Ads, previously known as Google AdWords, is the advertising program offered by Google that allows businesses to display ads on Google Search results pages and across their display advertising network. It uses a keyword-driven auction-based pricing model where advertisers bid on certain keywords relevant to their target audience. Depending on the competition and demand for those keywords, the cost that an advertiser has to pay can vary significantly. So what might the price of Google Ads look like in 2024, and how much should your business budget for it?
This article will provide an overview of the estimated cost per click (CPC) and cost per thousand impressions (CPM) ranges across Google Search and Display Network campaigns in 2024. It will also recommend monthly budget ranges for small, medium, and large businesses next year. Beyond the Google Ads costs, we’ll also discuss additional expenses to factor in, such as professional management fees, optimization, and ROI tracking costs.
Key Takeaways
- Google Ads costs vary widely based on factors like keywords, placement, bidding strategy, targeting, etc.
- Average CPCs in 2024 are estimated to range from $1 to $5 on the Search Network and $0.50 to $2 on the Display Network.
- CPMs in 2024 are projected to be $10 — $40 on Search and $2 — $10 on Display.
- Recommended budgets for small businesses can start around $1,000/month, medium at $5,000/month, and large at $15,000+/month.
- Beyond the ad costs, it also factors in management, optimization, and tracking expenses.
- Continual testing and incrementally increasing budgets are key to maximizing Google Ads ROI.
What Impacts Google Ads Costs?
Before diving into the specific estimated costs for 2024, it’s important to understand the key factors that influence Google Ads pricing models and why costs can vary so much:
- Keyword Competition: More sought-after, high-traffic keywords naturally have higher competition and bids, which raises the Cost Per Click. Less competitive long-tail keywords are cheaper.
- Ad Placement: Ads placed at the very top of Google result pages (position 1–3) have higher ad position costs. Lower bottom placements are cheaper.
- Bidding Strategy: Manual bidding, where you set maximum bids vs. automated bidding (eCPC), impacts cost.
- Ad Networks: Search Network CPCs are higher, and Display Network CPMs are more affordable on average.
- Device Targeting: Mobile search ads tend to be more expensive than desktop/tablet ads.
- Audience Targeting: More specific and narrow targeting generally results in higher costs per click/impression.
- Ad Formats: Text ads typically have lower CPCs, but image, video, and other ad formats command higher pricing.
With all those factors at play, this means costs can realistically range from just a few cents per click up past $50+ per click, depending on the competitiveness of the keyword, targeting, ad placement, and other options chosen.
Now that we’ve covered the key cost drivers, let’s look at estimated CPC and CPM ranges for 2024.
What is the Average Cost Per Click (CPC) in 2024
For the Google Search Network in 2024, the average Cost Per Click is projected to be:
Search Network CPC Estimate for 2024: $1: $5
On the Google Display Network side for 2024, average CPCs are estimated to be:
Display Network CPC Estimate for 2024: $0.50: $2
As a comparison, current 2022 averages for Google Ads tend to be:
Search Network CPC in 2022: $1: $3
Display Network CPC in 2022: $0.30: $1
What is the Average Cost Per Thousand Impressions (CPM) in 2024
In addition to CPCs, Google Ads are also priced using the Cost Per Thousand Impressions (CPM) model, most commonly for Display Network campaigns.
For the Google Search Network in 2024, estimated CPMs are:
Search Network CPM Estimate for 2024: $10: $40
And on the Google Display Network for 2024:
Display Network CPM Estimate for 2024: $2: $10
Compare that to 2022 averages, which currently tend to fall around:
Search Network CPM in 2022: $8: $30
Display Network CPM in 2022: $1: $5
Again, we see CPMs rising slightly in 2024 based on increased competition, demand, and Google monetization. Display ads tend to be less costly on a CPM basis than Search.
Monthly Budget Recommendations for 2024
When it comes to setting monthly Google Ads budgets for 2024, here are some general recommended ranges to consider based on business size:
Small Business Budget
2024 Monthly Budget for Small Business: $1,000: $5,000
For small businesses, including startups, blogs, and small ecommerce sites, a monthly Google Ads budget between $1,000 and $5,000 is a sensible range for 2024. You want a large enough budget to achieve visibility and scale but not so high that you overspend.
Medium Business Budget
2024 Monthly Budget for Medium Business: $5,000: $15,000
For medium-sized businesses with established revenue streams, you’ll want to increase the budget to $5,000 to $15,000 per month for 2024. This provides a healthy paid search presence.
Large Business Budget
2024 Monthly Budget for Large Business: $15,000+
Larger enterprises should invest $15,000 or more per month in 2024 Google Ads campaigns. This higher budget allows you to scale up efforts and promotes increased visibility and traffic volume.
In addition to business size, optimal ad budgets also depend on factors like:
- Expected number of clicks and conversions
- Target cost-per-click
- Impression and reach goals
- The competitiveness of keywords targeted
- Actual ROI from conversions
Continually monitor these metrics and aim to balance your budget so it maximizes ROI. As you scale up campaigns, incrementally increase it over time.
Additional Cost Considerations
Beyond the Google Ads costs, which make up the bulk of your advertising budget, you should factor in some additional fees and expenses.
Professional Management Fees
Many businesses choose to outsource the management of Google Ads campaigns to an agency or freelance expert. Typical fees range from 15% to 25% of the total ad spend.
Paid Ad Management Platforms
Ad management software like WordStream, Optmyzr, or Acquisio offers automation and tools to optimize campaigns. Plans range from $100 to $500+ per month.
Testing and Optimization
Proper testing of new keywords, ad copy, landing pages and audiences is crucial for Google Ads success but does require some additional budget allocation for small-scale experiments.
Tracking ROI and Controlling CPA
It’s vital to monitor campaign performance closely, track conversions, and calculate return on ad spend. Also, optimize for target cost-per-acquisition (CPA) goals. Setting up analytics and reporting involves costs.
Factor all of these additional expenses into your 2024 planning. They can easily add hundreds or thousands of dollars per month to your Google Ads costs, but they also help maximize effectiveness.
The Bottom Line
When determining how much to budget for Google Ads in 2024, it’s important to consider the factors that impact cost per click and cost per thousand impressions. The analysis projects an average CPC of $1-$5 on the Search Network and $0.50-$2 on the Display Network, with recommended monthly budgets starting around $1,000 for small businesses. Once you’ve set your Google Ads budget, you may want to consider outsourcing management and optimization to an expert service like XtremeUX Digital Canada to maximize performance. Their technical team offers affordable Google Ads setup and management services to implement and optimize campaigns based on metrics like ROI and target CPA. Working with a service like Trusted Web eServices ensures your budget is well-spent.
Frequently Asked Questions (FAQs)
How much does it cost for Google Ads in 2024?
In 2024, the average cost per click for Google Ads is estimated to be between $1 and $5 on the Search Network and $0.50 and $2 on the Display Network. The average cost per thousand impressions will be around $10: $40 for Search and $2: $10 for Display.
What factors increase Google Ads costs?
Major factors that raise Google Ads costs include high keyword competition, prominent ad placements, the use of automated bidding strategies, targeting mobile devices, more specific audience targeting, and utilizing more expensive ad formats like video.
How can I get cheap clicks on Google Ads?
To get cheaper clicks on Google Ads, target long-tail keywords with low competition, use bottom ad placements, manual bidding with lower max CPCs, text ads instead of rich media, and less restrictive targeting options.
Should my business use Google Ads in 2024?
Most businesses should utilize Google Ads in 2024 as part of their digital marketing strategy. Start with a testing budget and track performance to ensure positive ROI before scaling up spending.
How much budget will Google Ads require in 2024?
Recommended starting budgets for Google Ads in 2024 are around $1,000 to $5,000 per month for small businesses, $5,000 to $15,000 for medium companies, and $15,000+ for large enterprises. Factor in management and optimization costs, too.
What can increase my Google Ads performance in 2024?
Ways to boost Google Ads performance in 2024 include continual A/B testing of new keywords and ad copy, creating more targeted landing pages, monitoring ROI and controlling CPA, optimizing bidding strategies, and incrementally increasing budgets over time.
