How Much Does PPC Cost?

And Other Questions About PPC!

Digital marketing has many different facets with varying levels of success and duration of effectiveness. However, there’s one strategy that’s been tried and tested to deliver almost instantaneous results when executed with a strategic plan: PPC.

Because of the effectiveness of pay-per-click as a marketing strategy, both small and established brands have learned how to utilize PPC to effectively reach their target audience. If you’re one of the brands who wish to dabble in PPC, you may have a few questions that you want to ask the experts, which is understandable since PPC may be a bit complicated for starters!

In this article, we’ll help you navigate the world of PPC by answering the most common questions about how much PPC costs, how much PPC management fees are, and how campaigns are made by the most effective PPC agencies out there.

How Much Does PPC Cost?

When you’re starting out in PPC, you’re probably not quite sure how much is the average cost for PPC advertisements, which may lead to either subpar ad placements (in an attempt to save) or to overspending. But if you ask the experts how much does PPC cost, they’ll probably say it depends heavily on the industry you’re part of, as well as the keywords you’re looking to target.

For industries that thrive in high-competition environments, including insurance and law practice, the highest prices can fetch up to about USD 50 cost per click – a hefty price to pay for paid advertisements! However, for less competitive industries, the average Google ads cost comes at about USD 1 to 2 cost per click, depending on the keywords chosen and the targeting. The effectiveness of the campaign then largely depends on your ability to narrow down on your most motivated customers to translate clicks into high-quality leads. 

What Factors Affect PPC Cost?

While you might think that PPC platforms offer static costs to advertise your brand, there are actually numerous factors that may affect the cost of your bids and your ads’ ability to reach your target audience. To make it easier to understand, there are three of the main factors that Google ads have included in its PPC cost equation:

Quality Score

One of the most important factors in PPC is your website’s quality score, which governs how much you’d need to spend to get a higher ad ranking on search results. The higher your quality score, the lower your CPC will be, but the lower your quality score is, the higher you would need to bid. To help you better understand, your quality score depends on various things: your past Google ads performance, your click-through rate, and your ad’s and landing page’s relevance. To increase your quality score, you’d want to optimize your landing pages and utilize keyword research to find better targeting opportunities.


PPC cost is also dictated by demand, with seasonal changes often bringing about adjustments to advertisement prices. When your competitors bid higher for keywords during a specific high-demand season, you can expect that your PPC spending may require a bit of an adjustment to keep your ranking. 

Strong Competition

Competition is one of the driving forces in PPC prices because the more competitive the market is, the higher the cost of PPC, especially if you’re targeting transactional keywords. This is why competitor analysis is one of the most crucial steps in PPC. When you know how your competitors work and which keywords they’re targeting, it helps you find advertisement opportunities that you may have missed or narrow down on issues that may be negatively impacting your campaign.

Do Different PPC Types Have Varying Prices?

PPC is a broad marketing model that encompasses different platforms and advertisement types. While the most common PPC approach is Google paid search advertising, PPC also applies to display ads, and the different types of social media advertisements, such as Facebook and LinkedIn.

Because these different PPC types belong to different platforms, you can expect slight differences in advertisement pricing. Display ads, or the ones that you often see as banner advertisements on news sites, blogs, and other web pages, average at less than USD 1 cost per click. 

Facebook ads, on the one hand, offer different advertising costs depending on your choice. You can go for cost per click or cost per 1,000 impressions, the latter of which is a great choice for brands whose primary goal is brand awareness. For Facebook ads, cost per click comes at about USD 1, and cost per 1,000 impressions comes at a little over USD 7. For B2C companies, Facebook advertisement is a great platform to utilize to reach the most active consumers.

For B2B companies, however, there’s also LinkedIn advertisement, which offers competitive targeting, allowing you to connect with other enterprises for better partnership opportunities. On LinkedIn, cost per click comes at a much higher price at a little over USD 5, which is understandable since LinkedIn is one of the top-performing professional networks out there.

How Much Does PPC Management Services Cost?

Because PPC management may be a bit tricky for beginners, a lot of brands and companies choose to hire PPC specialists as well as PPC management teams to execute and monitor their advertisements campaigns with expertise. This is why a lot of digital marketing companies in Australia and around the world are now starting to build their services around PPC. But how much do PPC management services cost?

This all depends on the expertise and experience of the team you’re planning to work with, as well as the ad spend you’re planning to propose. In some PPC agencies, you may be asked to pay a certain percentage of your ad spend – ranging between 20% and 25%. Some ad agencies may offer fixed management and setup fees. On average, you may be asked to pay about USD 250 to USD 1,500 monthly for management fees on top of your ad spend. For small to medium-sized businesses, this may seem a bit high, but an effective PPC campaign will guarantee better revenue and maximum ROI.

Is Hiring a PPC Management Agency Cost-Effective?

When you partner with an experienced PPC management agency, chances are you’re signing up for greater revenue thanks to their experience in handling targeted ads. Not only will hiring a PPC management agency be cost-effective, but it will also translate to maximum ROI and boosted brand performance in both brand awareness and sales.

Should I Sign Up for Professional PPC Management Services?

When it comes to PPC, a certain degree of knowledge and expertise is needed to perfectly execute a campaign and target the most motivated customers your brand can connect with. For beginners, this may entail a trial-and-error process, which may become costly in a competitive market. This is what professional PPC management services aim to help you with. When you partner with the experts, they can remove the experimentation part and start campaigns that are tailored to your goals. You can target customers, gain leads, and boost your overall sales, and at the same time monitor your ad’s performance for better opportunities.

New to PPC? We’re Here to Help!

Starting out with PPC may be a daunting task, especially since you’ll be handling finances that can directly affect your brand’s performance. And chances are you have numerous questions that you may still be reeling to ask even after reading this page. If you do, don’t hesitate to reach out to us at SEO Services Australia, and we’ll do our best to answer all of your queries about PPC or any other digital marketing strategy you may be planning to experiment with.

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