How Much Does PPC Cost in 2018?

In 2018, the average small and medium-sized businesses spend between $9,000 and $10,000 on PPC every month. Pricing is dynamic for PPC and always changing. Whether you are a first timer looking to start advertising using PPC or a seasoned vet, this page will work you through how much PPC costs, an inside look at PPC management fees, and how to set the best budget for your campaigns.

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Basic Plan

  • Up to $2,500 monthly PPC spend
  • Up to 400 keywords in campaign
  • $1,000 one-time setup fee
  • $350
    per month
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Aggressive Plan

  • $2,501 to $15,000 monthly PPC spend
  • Up to 2,000 keywords in campaign
  • $1,750 one-time setup fee
  • 14%
    of monthly budget
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Market Leader Plan

  • $15,000+ monthly PPC spend
  • Up to 10,000 keywords in campaign
  • $2,500 one-time setup fee
  • 12%
    of monthly budget
Get a Quote

How much does PPC cost?

If you’re looking to launch a PPC campaign, you’re likely curious about the cost. However, with platforms like Google AdWords, there is no one-size fits all answer. Since AdWords is such a customizable platform, you can control your PPC budget and increase or decrease your ad spend as you see fit.

To better understand how much you should expect to pay for PPC, let’s take a closer look at how Google AdWords works.

Let’s get started!

Video: Cost of Advertising with AdWords

Dan Shaffer of WebFX discusses how much you should expect to pay to advertise with Google AdWords

How does AdWords work?

With Google AdWords, you choose the keywords you want to trigger your ads. Then, you set a maximum bid for how much you’re willing to pay each time someone clicks your ad.

If your bid is among the highest for a keyword or phrase, it will appear at the top of search results with a small tag that shows it’s a paid ad.

One of the best parts of using Google AdWords is that you only pay when people click your ads. In other words, you won’t waste money trying to market to people who aren’t interested in your products or services.

While industries like legal and rehab should expect to pay upwards of $30-$40 per click for PPC, less competitive industries may only pay a few cents per click.

Since PPC targets people who are already searching terms related to your business, it will help you reach more qualified leads — people who are most likely to purchase your products or services.

However, there’s one catch. In addition to your max bid, Google considers your quality score (QS) when determining ad placement. Essentially, your quality score is a combination of your ad’s relevance to the keyword that triggered it, click through rate, and the quality of the landing page visitors see after clicking your ad.

In short, the Ad Rank formula = (your max cost per click (CPC) bid) x (your ad’s QS). For example, if your maximum bid for a keyword is $2, and you have an ad QS of 10, your Ad Rank is 20.

For a single auction, the advertiser with the top Ad Rank will win the top advertising spot.

It’s also important to note that you can end up spending less while earning a top position if your ad has a high QS. To determine the amount you pay per click, Google uses a simple formula: (Ad Rank of the ad below yours) / (Your QS) + $0.01.

To better understand this point, check out the graphic below.

AdWords CPC

In this example, you end up paying about 40 cents less per click than your max bid.

Google AdWords cost

Now, it’s easy to see that the cost of a Google AdWords campaign depends on a number of factors.

While there are certain aspects you can control — your max bid and quality of your ads — there are also elements you can’t control, like your competitors’ max bids and ad quality.

average ppc spend

In addition, your industry and the level of competition for the keywords you want to trigger your ads will impact the cost of your PPC campaigns. While your business may pay a few cents per click on your PPC ads, businesses in more competitive fields, like the legal realm, can pay hundreds of dollars per ad click.

On average, businesses should expect to pay $1-$2 per click to advertise on the Google search network. On a monthly basis, the average small and medium-sized businesses spend between $9,000 and $10,000 on PPC. This equates to approximately $108,000 to $120,000 per year.

Typically, the most competitive PPC keywords relate to insurance, financial services, and legal industries. Combined, business in the financial and insurance industries spend the most on PPC advertising each year — a cool $1.2 billion. Retail companies come in second, with Amazon speeding more than $50 million each year on PPC advertising.

For a more in-depth look at some of Google’s most expensive keyword, check out this blog post.

How is my AdWords budget spent?

One pro of PPC advertising is that you control your budget. However, it’s important to understand how your Google AdWords budget is spent so you can get the most from your campaigns.

In Google AdWords, every campaign has its own unique settings where you can control its daily budget. When you run multiple campaigns at the same time, it’s helpful to think about which campaigns you want to have more priority. For example, campaigns related to your top-selling products or services are likely more important than campaigns designed to target top-of-the-funnel (TOFU) customers.

Then, you can break down your monthly PPC budget into daily budgets for each campaign, assigning more spend to higher priority campaigns.

If you set the max bid for an ad to $0.50 and want to earn 500 clicks per day, you would set a daily budget of $250. It’s important to note that you’ll never pay more than your max bid for an ad click. However, you may end up paying less depending on the competition and your ad’s quality score.

With Google AdWords, you can specify when you want your ads to appear. For example, a local restaurant that closes at 9 p.m. might use PPC ads to encourage people to visit their location. While they can set their ads to all day, they can also increase bids for certain hours of the week.

Similarly, you can use geotargeting to allocate more of your budget to reach people in specific geographic areas. If you’re targeting customers in a specific city or neighborhood, geotargeting is a great way to maximize your ad spend and reach more qualified leads.

In addition, if mobile traffic is particularly valuable to your business, you can use device targeting to use more of your daily budget to reach mobile users. You can even take this a step further by targeting people using specific types of mobile devices. 

Google AdWords management services

As a team, we've refined our AdWords management services to offer the very best in PPC. Our specialists also have years of experience among all of them that makes them some of the best in the industry when it comes to PPC campaign management. And because you can see our price list above, you'll know exactly what to expect in terms of PPC AdWords management costs.

Because they know how to set up a PPC campaign, how to run a PPC campaign, and how to get the best possible results, our team will also optimize your AdWords and adCenter campaigns so you receive the most relevant and quality clicks possible.

Additionally, our team members' PPC manager certifications from Google and Microsoft demonstrate the knowledge and ability they possess in using the latest AdWords and adCenter tools available. This expertise works together with our awareness of the most up-to-date best practices to provide you with a successful and lucrative PPC campaign from one of the top PPC companies in the industry.

How much does PPC retargeting cost?

With PPC, you can also use retargeting to show your ads to people who have demonstrated interest in your business and they browse other websites. Since 96% of people leave a website without making a purchase, retargeting is a great way to remind them of your business and earn more conversions.

But how much should you expect to pay for retargeting?

Just like traditional PPC ads, the cost of remarketing ads varies depending on your industry. On average, you can expect to pay $0.66-$1.23 per click on remarketing ads — slightly less than the cost of traditional ads. And it’s estimated that companies spend roughly 10 percent of their ad budgets on remarketing.

How does WebFX determine PPC pricing?

WebFX offers three different pay-per-click management packages. The pricing of each package is based on the budget of the campaigns managed, and our various campaigns are sure to fit any of your marketing needs. Our PPC management pricing also varies by additional services included in each package, such as landing page design and implementation and website conversion analysis reporting.

Does your company spend more than $1,000 a month in Google AdWords?

If so, you're eligible for a free audit from one of our expert PPC strategists! Scroll down for more details on our PPC management packages or fill out the form to get started with your free PPC audit. Pricing for our PPC management packages starts at $350/month and is 100% transparent.

For a detailed explanation of PPC pricing models from one of the top PPC agencies in the industry, please see the charts below for PPC management cost and other important information.

PPC Management Pricing

Features
Basic Plan
Aggressive Plan
Market Leader
Features Basic Plan Aggressive Plan Market Leader
Monthly PPC spend with PPC networks Up to $2,500 $2,501 to $15,000 $15,000 - $50,000
Keywords in campaign Up to 400 Up to 2,000 Up to 10,000
Google PPC Network
Bing PPC Networks Additional $150/month
Google Text Ad Remarketing & Banner Remarketing (if banner ads are included, provided by the client, or creative banner design is paid for)
Google Display Network
YouTube Video Ads (Clients need to provide video or purchase a WebpageFX web video production package)
Google In-Store Visit Reporting
Google customer match & audience match
Gmail Competitor Ads
MarketingCloudFX competitor intelligence
Initial campaign development & strategy
Advanced keyword research and selection
Industry analysis
Ad campaign copywriting
Ad copy performance testing
Ongoing keyword development and tweaking
Dynamic keyword insertion into ads
Google analytics integration & goal tracking
Results analysis/reporting
Strategic bid management
PPC account settings monitoring (Ex. Geotargeting)
Single account representative
Up to two personal consultations per month
Up to 100 web lead phone calls tracked per month (Included for all WebpageFX clients)
Up to 25 web lead phone calls transcribed per month (Included for all WebpageFX clients)
Monitoring clicks, conversions and click fraud activity  
Setup and management of rule based bidding  
International PPC campaign management (English only campaigns)
Setup of 1 Unbounce Landing Page template (optional)
Website conversion analysis reporting    
Initial banner ad design for display & remarketing Add $900 Add $900 1 set included
Quarterly banner ad design for display & remarketing (a total of 4 banner ad sets a year) Add $300 Add $300 Add $225 a month (since 1 set is included each year)
Website conversion analysis implementation     By Quote
Social Media PPC Advertising By Quote By Quote By Quote
Landing page performance testing     By Quote
Monthly performance & analysis reporting
200+ SMEs behind campaign driving results
MarketingCloudFX Lead Tracking
Google Shopping Management $300/month $300/month Included
International Campaigns (Non-English) - Each additional language monthly management cost: $275 $275 $275
Weekly Data Calls: Review campaign changes every 7 days $400/month $400/month $400/month
Translation Services: By Quote By Quote By Quote
One time setup (1st month): $1,000 $1,750 $2,500
Progressive monthly management cost: $350 (& minimum for all plans) $500/mo. Or 14%, whichever is higher $1,800/mo. Or 12%, whichever is higher | $50k-$100k spend = 10% | $100k-$200k spend = 8% | $200k+ = 6%

Professional PPC management services from WebFX

By drawing on the expert knowledge and skill of the PPC management team at WebFX to manage your PPC accounts, you have Google AdWords Certified individuals and Microsoft Advertising Professionals working on your side.

As such, our team of PPC managers is more than qualified to manage your PPC account, as we continually stay up to date with changes to ad platforms, the current best practices, and how to best optimize your campaigns.

Each of our Internet marketers possesses the knowledge and experience necessary to increase your business's ROI by getting the best value from your overall PPC budget and ad spend.

Whether we are starting from scratch and setting up your very first campaign, or if we are overhauling your existing campaigns, our innovative approach to optimizing each campaign ensures you will receive the best return on your investment.

As the best PPC managers will know, it's dangerous to neglect data that could provide you with key insights on how to continually improve upon your website. The last thing you want to do after setting up optimized search engine marketing ad campaigns is allow them to run without ever paying attention to how they are performing. You could either pay a full-time employee to manage this, or you could take advantage of our professional PPC management team that has extensive experience in running a broad array of PPC campaigns.

Whether you need ecommerce PPC management or if you want to generate new leads for your B2B company, our team of marketers can help. Our AdWords PPC management is second to none, and we'd love to show you why.

PPC remarketing plans from WebFX

If you don’t have a remarketing strategy in place, you could be missing out on leads and revenue for your business.

Not sure how to get started? Don’t worry.

At WebFX, our PPC plans come with remarketing services to help you get the most from your paid advertising, reach more qualified customers, and earn more revenue.

WebFX also offers ecommerce email retargeting services. If a site visitor enters their email and leaves prior to completing a purchase, we can send personalized emails to remind them of the products they viewed or placed in their cards. Ultimately, retargeting plans can help you reach more high-quality leads and bring them back to your site to purchase.

In addition, we offer custom PPC reporting, so you’ll always know exactly where your money goes. And we’ll help you monitor your campaigns and make any needed tweaks to reach even more customers.

What's next?

Want to learn more about PPC advertising and how much you should expect to pay for a custom campaign?

WebFX is an award-winning PPC management company, and we know what it takes to create campaigns that drive the best possible results.

Contact us today to speak with a strategist and receive a custom quote. We look forward to helping your business grow with PPC advertising.

Ready to create PPC campaigns that drive results?

Call 888-601-5359 or contact an expert to learn more about world-class PPC services from WebFX.

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