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How Much Does PPC Advertising Cost?

Contents

Pay per click (PPC) marketing campaigns are one of the most popular marketing techniques for any business. Online business, especially, can build their audience and expand their reach by implementing PPC campaigns.

There is no one-size-fits-all approach to PPC pricing. Pricing is determined by two components—ad spend and campaign management.

The cost of PPC campaigns can vary significantly because you only pay for the clicks you get. Several factors impact the cost, including the scope of your campaign, your specific industry, competitors, and the size of your company. Businesses can expect to pay as little as $1-$2 per click and up to $40-$50 per click. 

This cost is just for ad spend and does not include management. A smaller, local PPC campaign can start as low as $500 a month for campaign management. As you might expect, larger businesses that have more expansive campaigns usually pay more for PPC services. 

The average small-to-medium sized business can expect to pay at least $1 per click, most likely more. Management costs for such campaigns usually hover around $2,000-$5,000 a month. 

What Is a Good Cost per Click (CPC)?

The ideal cost per click (CPC) is determined by your desired return on investment (ROI). In general, most businesses aim for a 5:1 ratio for revenue to ads, or an estimated $5 in revenue for every $1 spent on ad campaigns. 

Industries that have more competitive keyword bidding will have different ratios. There is no cookie-cutter response to this question because CPC differs depending on the platform, ad strategy, and the kind of PPC advertising that you use. 

For example, the average CPC for Google Ads paid search falls between $1-$2 while CPC rates for display networks might be below $1. The best way to determine an ideal CPC is to figure out the maximum amount you are willing to pay on clicks, then compare that to your expected revenue per click. 

THE COST PER IMPRESSION MODEL (CPM)

Cost per impression (CPM, where M stands for mille) is a PPC model in which prices are set based on how often your ad is viewed, rather than actually clicked on. For example, a CPM of $1 means that you pay $1 for every 1,000 views of your ad. 

As with PPC campaigns, CPM costs vary heavily depending on a wide range of factors. For example, the average CPM on Google in 2018 was $2.80 per 1,000 impressions. 

PPC Platforms: Google, Facebook, and Microsoft

Three PPC platforms to consider are Google Ads, Facebook Ads, and Microsoft Ads.

Google Ads are probably the most popular PPC advertising channel. The average CPC for Google PPC campaigns is around $1-$2, though this varies widely based on industry and competitors. 

Facebook Ads average $1.72 for CPC across all industries. The average CPM is approximately $11.19.

Microsoft Ads, formerly Bing Ads, average $1.56 for CPC, while the average CPM is $53.40. 

PPC Channels: Paid Search, Display Ads, and Social Media

Costs also vary by channel. Here is a breakdown of average pricing per channel:

Paid search—The average CPC across all industries for paid search ads is $2.32.

Display ads—The average CPC across all industries for display ads is $0.63.

Social media—Out of all social media channels, Facebook and Twitter have the lowest CPC rates at $0.97 and $0.38, respectively. Other social media channels such as LinkedIn, Instagram, and YouTube have generally higher CPC averages, at around $4 per click.

Is PPC Advertising Effective?

Yes! PPC advertising is one of the most efficient and cost-effective methods of generating leads and conversions. There is a very good reason why PPC campaigns form the backbone of most companies’ marketing strategies: it works and it has a high ROI. 

Getting Started

PPC costs vary heavily across industries. Get the most out of your marketing campaign by hiring a PPC company to handle ad creation, management, and monitoring. 

Logical offers PPC management services that can help you optimize your conversion rates while minimizing unnecessary ad spending. Contact Logical today to discuss strategies to maximize your advertising impact.

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  • Why Logical?
    • Overview
    • Case Studies
  • PPC
    • Overview
    • Paid Search
    • Display Ads
    • Remarketing
  • SEO
    • Overview
    • Keywords
    • Blogging
    • Meta Tags
    • Local SEO
  • Get Started
(434) 979-1252