What Is PPC? Pay Per Click Explained for Business Owners
What is PPC? Pay per click: online ads where you pay only when someone clicks. How PPC marketing works, where the ads appear and when it suits a business.


Google Ads cost is mostly up to you: you set an average daily budget, and you pay each time someone clicks your ad, at a price decided in Google’s ad auction. There’s no fixed Google Ads price list. The cost per click depends on how competitive your keywords are, the quality of your ads and landing page, and your location and timing. Many small businesses start with a modest budget and grow it as results come in.
So, how much do Google Ads cost? Two parts: the ad spend you pay Google, and any management fee if someone runs the account for you. Here’s how each works.
Google Ads pricing for search ads is pay per click (PPC): you’re charged when someone clicks, not when your ad is shown. Each time a search happens, Google runs an auction among the advertisers bidding on that search. As Google explains in how the Google Ads auction works, the winner isn’t just the highest bidder: your Ad Rank combines your bid with the quality of your ad and landing page, the context of the search and the ad assets you use.
That’s why Google ad rates vary so much. A well-built ad with a relevant landing page can pay less per click than a competitor with a higher bid and a weaker ad.
You set an average daily budget for each campaign. According to Google’s help page on average daily budgets, Google may spend more than that on busy days, but across a month you won’t pay more than 30.4 times your average daily budget. You can pause, change or stop the budget at any time.
To work out how much to advertise on Google Ads each month, start from what a customer is worth to you, how many enquiries you want, and how many clicks it usually takes to get one. Then test and adjust.
It varies from cents to many dollars per click depending on the keyword, and the only reliable way to know for your business is to check. Google’s Keyword Planner shows estimated bid ranges for your keywords and location before you spend anything, and your campaign data shows the actual cost per click once ads are running. We don’t quote a typical cost per click, because averages across industries don’t tell you what your keywords will cost.
Google doesn’t charge a fee to use Google Ads: you pay for clicks. Agencies charge for their time. At Rock Solid Marketing, ongoing Google Ads management sits inside our partnership plans, from $4,500 + GST a month for 28 hours of work across your marketing, with your ad spend paid directly to Google. For one-off work such as an account review or set-up, we charge $175 + GST an hour, with the hours agreed before we start.
It’s whatever budget you set. Your monthly Google advertising cost is roughly your average daily budget times 30.4 at most, plus any management fee. Many small businesses test for a few months at a steady budget before deciding whether to increase it.
Google AdWords was renamed Google Ads in 2018, and the pricing model is the same: you set a budget and pay per click through the auction. Google AdWords cost questions are answered by the same budget and auction rules described above.
Sponsored results in Google search are Google Ads, so the Google sponsored ads price is the cost per click you pay in the auction. Google sponsored ads cost the same way whether they appear at the top or bottom of the results: you pay when someone clicks.
Google doesn’t set a large minimum, so you can start small. A budget that’s too low may only buy a few clicks a day, which makes it hard to learn what works. Focus a smaller budget on your most valuable keywords and location rather than spreading it thinly.
Google Ads cost comes down to your budget and an auction for each click, influenced by competition and the quality of your ads. Plan from what a customer is worth, test, and track enquiries. Compare it with Facebook ads costs, or ask our PPC management team to set it up properly.
A marketing team that has helped businesses across Sunraysia and the Mallee since 2017, from our office on Deakin Avenue in Mildura.
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What is PPC? Pay per click: online ads where you pay only when someone clicks. How PPC marketing works, where the ads appear and when it suits a business.
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