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How Much Money Does It Take To Run Google Paid Search Ads?

Advertisers new to paid search frequently ask how much they should spend on Google Ads. Unfortunately, there isn't an easy answer because every business is unique and has different goals. However, that doesn’t mean we can’t tell you how much a “typical” business spends on paid search.

First, we need to look at overall spend data by industry.

If you look at the average cost-per-click (CPC) data below, you’ll see that the top five most expensive queries to drive traffic from are found in:

  1. Insurance

  2. Online education

  3. Legal

  4. Marketing & advertising

  5. Internet & telecom

Big brands within the industries with the most expensive CPCs can spend $40 to $50 million a year, but the good news is you don’t need to spend millions on Google to make paid search work for your business.

How Much Do Small Businesses Spend On Google Ads?

As you might expect, the amount that small businesses spend on paid search varies widely. Here’s what some of our clients are spending by vertical:

  • Real Estate: $1,000 – $3,000 per month

  • Home Services: $400 – $3,000 per month

  • Healthcare: $100 – $1,000 per month

  • Professional Services: $200 – $1,000 per month

  • Retail: $400 – $8,000 per month

Spends can differ because some of our clients have bigger budgets to work with, but know that a paid search budget can ultimately be as small as you want it to be because there are no minimums or time commitments. If you want to just spend $100 a month, we can make that work and allocate that spend to the areas most likely to get the best return per dollar.

Interested In Learning More?

Contact Funnel today to discuss how we can help your business!


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