Preloader Logo
ANA Digital Media Logo
Breadcrumb Elements 1 Breadcrumb Elements 2

Google Ads Costs Explained (2025)

Home Google Ads Costs Explained (2025)
Blog Img

I hope you enjoy reading this article. If you need support with SEO, Google Ads, Facebook Ads or Landing Pages click on the link.

Google Ads, formerly known as Google Adwords, is a program that allows you to advertise across Google's networks.

The costs you pay for this are based on a large number of factors, such as the level of competition, the position you want to achieve, and your quality score. Therefore, it's impossible to give an exact figure.

For a successful Google Ads campaign, you want to pay as little as possible in advertising costs and get the highest possible return. The advertising options Google offers are perfect for this.

We cannot give you the exact costs you need to budget for when starting a Google Ads campaign. They depend on too many factors and are literally different for everyone.

Fortunately, we can explain how these costs are determined. Read in less than ✅ 11 minutes ✅ about how Google calculates the costs for advertising on their networks.

Google Doesn't Set the Price

The good news is that Google doesn't ask advertisers for exact amounts; you set them yourself. You can specify how much you want to pay for Google Ads daily (or monthly). For one person, this might be ₹1,500, and for another, it could be ₹100,000. In this way, Google makes it possible for everyone to advertise, whether you're a small or large, new or established business.

Additionally, a number of different advertising options are offered, and each option has a different payment method. We will cover this in detail in this article, but before we do, it's useful to explain exactly how advertising through Google works.

Two Google Networks

Google offers advertising space in two different networks: the Google Search Network and the Google Display Network.

Check Icon

Google Search Network: When you advertise on the Google Search Network, your ad appears above the search results. This is an example of pull marketing because the customer is already looking for you. For example, if you sell cheese and someone is looking for a 'Gouda extra aged cheese,' your ad will appear if you have targeted that keyword. With the right settings, you only attract customers to your website who are already interested in your product.

Check Icon

Google Display Network: The Google Display Network (GDN) consists of all Google websites and Google's partner websites. YouTube, Gmail, and Translate are part of this, but there are a total of more than 2 million websites, videos, and apps that are part of it. Your ad banner is then shown to people who are using those websites at that time, which is a form of push marketing. This is far from random; through the GDN, it's possible to reach a very specific target audience.

Advertising via YouTube

Blog Img

YouTube is part of the Google Display Network, but it is worth mentioning this option separately. After Google, YouTube is the most used search engine in the world, and the search queries are quite specific.

Instead of a website, people are looking for a video. With this option, it's particularly important that you know and define your target audience well. If you do this correctly, YouTube is an ideal medium for advertising.

The Advantages of Advertising via YouTube

Advertising on YouTube has the following key advantages:

Check Icon

Cost-effective: Running ads on YouTube is significantly cheaper compared to many other platforms. On average, the cost per view in India is between ₹1–₹3. You only pay when someone watches at least 30 seconds of your ad (or the full ad if it’s shorter) or interacts with it. If they skip before that, you don’t pay.

Check Icon

Targeted: Another big advantage of advertising via YouTube is that you can reach a very precise target audience. There are a large number of ways to reach a very specific audience.

Check Icon

Measurable: In addition, the results of your ad campaign on YouTube are easily measurable. You can change your settings while your campaign is running. With YouTube, if set up correctly, you can reach a large audience for a small amount of money. If this medium fits your goals well, it is definitely an option worth considering.

Why is Advertising via Google Ads So Valuable?

Millions of search queries are entered into Google every day. These are all people who are interested in something, want to know something, or want to buy something. By advertising through Google Ads, you make use of this enormous network.

Google looks at the search queries and only shows your ad if a relevant term is typed or if someone from your target audience comes online. This means you can advertise in a much more targeted way and only reach people who have already shown interest in your product or who fall within your target audience. Try achieving that with a newspaper ad.

There are several advantages to this way of advertising. Google also offers you various ways to analyse what your ads are doing, right from the moment you start them.

The results are measurable and can be adjusted, which means that Google Ads campaigns are dynamic. Are you selling air conditioners and a heatwave is coming? You can sharpen your campaign. A final great advantage of Google Ads is that it is one of the cheapest ways to advertise. If you do it right, you get great results for little money.

Paying for Google Ads

It's clear that Google's two networks offer excellent opportunities for both pull and push marketing. Pull marketing (via the Google Search Network) is usually used for clear sales goals, while push marketing (via the GDN) is better for branding. There are three ways to pay in Google Ads.

1. Cost Per Click (CPC) on Your Ad

The Cost per Click (CPC) payment method is the most common option when you advertise on the Google Search Network. You pay an amount each time someone clicks on your ad and lands on your website. You set the price you want to pay per click yourself. When your keyword is entered, Google 'auctions' the ad spaces linked to it to advertisers.

It's not the case that this spot automatically goes to the person with the highest CPC. Google gives the ad space away by looking at a number of other factors. It's therefore important, when you start your ad campaign, not only to estimate your CPC correctly but also to satisfy Google in other areas. The factors that play a role are the level of competition, the click-through rate, your quality score, and the ad position. CPC is also a common payment method in the GDN.

Factors That Determine CPC

The CPC you set yourself determines the success of your campaign. If you bid too low, your ad will never be shown, and if you bid too high, you won't make a profit. You can see what the average CPC is for ads that focus on your keyword in various keyword tools (SEMrush, Google Keyword Planner, Moz, etc.). With that average in mind, you delve into the following factors:

Check Icon

How much competition there is: The greater the competition for an ad space, the higher the CPC. It is therefore important to focus your ad campaign on a keyword that is searched for but is still used by few of your competitors.

Check Icon

The click-through rate: Do you have ads that are clicked on a lot? Then Google sees these as more relevant than ads that are not touched. Even if you bid lower, a good click-through rate will still give you priority.

Check Icon

Your quality score: The longer you advertise successfully through Google Ads, the better your quality score becomes. And the better your quality score, the lower the required CPC. In the beginning, you will not be able to benefit from this factor, but as you become better and more consistent, the costs for your Google Ads campaign will decrease.

Check Icon

The position of the ad: Do you want to be in the first place of the ad positions? Then you also have to pay more for it. If the first position is not the most important goal for you

Two Different CPC Prices

When you set the CPC for your ad campaign, you pass on a maximum bid. This is the highest amount you are willing to pay for a click on your ad. In this way, you will never be faced with financial surprises.

This type of CPC is called the maximum CPC. There is also an actual CPC, which is the final amount you pay. This is often equal to or less than the maximum CPC you have set.

By setting up your campaign correctly, you ensure that your actual CPC is as low as possible and you therefore achieve the highest possible return.

2. Cost Per Action (CPA)

Experienced Google Ads users set a CPA. This acronym stands for Cost per Action or Cost per Acquisition. You pay when an interaction takes place between the visitor to the website and you.

In other words: if an internet user clicks on your ad, reaches your website, and does what you want them to do there, you only pay a certain amount.

The "action" can be anything, from filling out a questionnaire to purchasing a product. The reason this payment method is suitable especially for experienced Google Ads users is that you can suffer large losses if you do it wrong.

3. Cost Per 1000 Impressions (CPM)

CPM stands for Cost per Mille. This is a common payment method if you use the GDN to place your ads. You pay per 1,000 impressions and you specify the maximum amount you will pay for this yourself. It remains a bidding strategy, so if you set a CPM that is too low, your ad may not be shown.

By advertising via the GDN and setting your CPM, it is possible to tailor your ad campaign completely to your own wishes. You get the opportunity to enter your exact target audience and only show your ads to them. Another useful option you get is to place the ad only on certain websites. Through the GDN, you can advertise in a very targeted way, often for less money than on the Google Search Network.

Manual or Automatic Bidding

The information above discusses the payment options you have if you set up your campaign yourself. And if you like to retain a certain degree of control, this is certainly not a bad option.

The disadvantage is that you only get the best settings after you have already gained experience with Google Ads. The more knowledge you have, the better your campaigns will be and the more results you will achieve with a smaller amount.

Another option you have is automatic bidding. You tell Google what goals you want to achieve and what budget you have for it. They then do the rest.

Automatic Bidding: The Strategies

To optimally distribute your budget, Google uses a number of different strategies. These are all automated.

1. A Maximum Number of Clicks

If you want to attract more visitors to your website with your ad, this is a good strategy.

Google will work in the background to achieve a maximum number of clicks on your ad with your budget. They do this by distributing your money across ad groups, campaigns, and keywords.

2. Better Than Your Competition

The target impression share bidding strategy is intended to place your ads higher than those of your competitors. The goal is to increase the visibility of your ad compared to that of your competitors.

3. On the First Page

Google also focuses on making your ad visible in general. By regularly adjusting your bid, Google places your ad on the first page.

You have no guarantee that you will actually end up on the first page, because other factors also play a role. Think of your quality score and the competition for a spot.

Nevertheless, this is a good strategy to generate more visibility. Therefore, choose your keywords well.

4. Increase Your Conversion Rate

The ECPC strategy (ECPC stands for Effective Costs per Click) is intended to increase the number of conversions for as little money as possible. This is a partially automatic strategy because you control the bids.

You increase the bid money when there is a high chance of a conversion and lower it when the chance has disappeared.

5. CPA Goal

This strategy is based on the Cost per Action payment model. You tell Google how much you want to pay on average per action, and Google uses that amount to advertise. Sometimes you will pay more per action and sometimes less.

Here it is very important to set your budget correctly and not miss out on clicks. It is best to set up this strategy by looking at the conversion data from your previous campaigns.

6. Google Ads Uses Your Previous Conversions

If you have generated 15 or more conversions in the last 30 days, you can instruct Google to place the next bids using that data.

Here you give Google the level of return you want to see, and based on that, they get to work for you. The ultimate goal is that the return on the expenses you make for the ad is as high as possible.

How Much Does Advertising Through Google Ads Cost?

It is almost impossible to say how much you will pay for your Google Ads campaign. In the beginning, you will spend more money on this because you still have to build a reputation.

This is also the reason that many companies decide to outsource this option. Ana Digital Media is the specialist for you. We use the SEO Surfer Tool to gain insight into the possibilities and the status of your competition.

Until then, you can see here what we can all do for you.

Drive Targeted Traffic with Ana Digital Media’s Google Ads Services

Check Icon

Campaign Strategy – We design highly effective Google Ads campaigns that reach the right audience at the right time.

Check Icon

Ad Creation – Eye-catching ad copies and creatives that attract clicks and conversions.

Check Icon

Optimization & Analysis – Our specialists monitor, tweak, and optimize your campaigns to get the best ROI.

We Start with an Introductory Meeting

Blog Img

First, we will sit down with you extensively. We want to know exactly what you are currently doing in online advertising and what you want to achieve with it in the future.

We will also ask you what you expect from Ana Digital Media and what your current budget is. Tell us everything about your company/institution/website, your mission, vision, and target audience. Based on that information, we will get to work and propose a strategy. If you accept this strategy, we will start working for you immediately.

SEO is Also Important

It is, of course, great that you can attract more visitors to your website through Google Ads, but if this website then does not provide conversions, you have invested money in it for nothing.

That is why the specialists at Ana Digital Media first tackle your website. This is where your visitors land, and we ensure that they also stay there and become customers. In other words, we improve your dwell rate and conversion rate. We do this by applying various techniques.

1. SEO Technology

First, we look at the technology behind your website. Is it fast enough? Is your website secure? Is the coding good, and is the structure? Today, no one has the patience to wait for a website's content to load, so slow websites are really disastrous for your dwell rate.

You will also lose many customers if your website does not yet have a security certificate. Finally, good coding ensures that the visitor can go directly to the information they need.

2. SEO Content

Now that we have sorted out the technology of your website, we will look at the content. First, we do keyword research and re-organise the pages of your site, if necessary.

We incorporate the keywords into the texts and other relevant places, we remove duplicate content, add link-worthy content, and work on your internal and external links.

We use videos, images, and add a blog to make your website even more fascinating and attractive. And everything we do is tailored to the latest SEO techniques of the moment.

3. Link Building

A website with authority does much better with search engines than a website that is seen as unimportant by them. That's why we ensure you get backlinks.

Backlinks are links from other websites to yours, and quality backlinks are seen by the search engine as references. The more good backlinks you get, the more weight the search engines give to your website. We will remove toxic backlinks (links from websites without authority) for you.

4. Local SEO

Today, local SEO is very important. If someone types or speaks into a search engine that they are looking for a restaurant in London, these people do not want to see results for restaurants from other cities. By focusing on local search queries, you are targeting people who are already actually looking for you.

Local search queries are much more precise and targeted, which means that the chance of a conversion is greater. Ana Digital Media helps you to be prepared for this. In addition, you will then also be more findable for internet users via Voice Search.

Your Website is Your Marketing

By applying all these strategies, and dozens of other methods, your website becomes more visible on Google. Our goal is to get you into the top 5, because only 25% of internet users look further.

In addition, your website is also adapted in such a way that the extra visitors you generate from this top position also want to stay on your website and do what you have in mind. The ultimate goal of is not only to set up your SEO and other online marketing strategies; we ensure an optimal conversion rate, which means that your turnover goes up.

Take It a Step Further with Google Ads

When all that is in order, you will already notice that the number of visitors to your website increases. That is, of course, great, but it can be even better. That's why we also delve into your online marketing, and Google Ads is an important part of that.

We help you get off to a brilliant start and set up the best campaign for your company. We do this in consultation with you and based on the information and budget you have given us.

Setting a Budget

The budget you give us to use for placing online ads is also the budget we give to Google Ads. It is possible to set a maximum budget.

Google Ads then ensures that you do not exceed it. You can enter a maximum monthly or daily budget, and this is an average. For example, if you want to spend ₹1,000 daily on Google Ads, this will cost you ₹1,500 on some days and ₹500 on others. In the end, after 30 days, you will not have spent more than ₹30,000, so you will never pay more than you can afford.

Advertising via the Google Search Network

Blog Img

With this budget, we then set up a campaign for you. If we do this on the search network, we use a form of pull marketing.

This is an attractive way of advertising because you use keywords that already attract customers who are looking for you.

The search queries 'Italian restaurant in London' or 'buy colouring pencils' come from internet users who already have a purchase in mind. With a good ad, you ensure they make that purchase from you.

Ana Digital Media sets up an ad campaign for you on the Google Search Network. We can then focus on a specific region, city, county, country, or the whole world.

Through Google Ads, it is also possible to specify when you want these ads to be visible and when you want to spend more than usual. For example, you can bid higher for an ad for a sledge if snow is predicted and lower this amount again when the weather is nice.

Advertising via the Google Display Network

If we get to work for you within the Google Display Network, we use a form of push marketing. It is also possible to set this by time and place, but in addition, we also focus directly on your target audience.

We do this, for example, by using interest, topic, age, or keywords. In this way, we reach exactly the right people, which in turn means that push marketing becomes significantly more effective.

If your company is suitable for this, we would also be happy to set up an ad campaign for you on YouTube.

We see many opportunities here for little money. Of course, we also maintain your campaigns for you if you wish. We monitor them, adjust them if necessary, and try a different approach if they do not yield the right return.

Increase Your Turnover with Ana Digital Media and Google Ads

Investing money in an online marketing agency ultimately brings you more profit, and at Ana Digital Media, we have the specialists who will help you with that.

Together, we ensure that your website is optimal, that your Google Ads campaigns are successful and profitable, and that your conversion rate goes up. Invest in Ana Digital Media, set up a perfect Google Ads campaign, and reap the benefits quickly.

CTA Design images 1 CTA Design images 2

Ready to Grow with ANA Digital Media?

Let our experts turn your goals into real results.

google partner logo