How much do Google Ads cost for a small business in the US and UK?
What drives Google Ads costs, how to set a starting budget, and how to tell if your spend is working.
5 min read
There's no fixed price
Google Ads is an auction. You pay per click, and the cost of a click depends on how many advertisers want the same search, how relevant your ad is, and how good your landing page is.
That means two businesses in the same city can pay very different amounts for the same keyword.
What affects your cost per click
Industry competition is the biggest factor. Legal, finance and home services are usually more expensive than retail or hobbies.
Quality Score also matters. Google rewards relevant ads and useful landing pages with lower costs.
How to set a starting budget
Work backwards from the customer. Estimate what a new customer is worth, how many leads you need to win one, and what you can afford to pay per lead.
Start with a test budget for a few weeks, measure cost per lead, then scale the campaigns that work.
How to know it's working
Track conversions, not clicks. Set up form, call and purchase tracking before you spend.
Review search terms weekly and add negative keywords to cut wasted spend.
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