How Much Does It Cost to Advertise on Google?
by: Nicolas

"How much does it cost to advertise on Google", that's a question we get often, and the answer is always: it depends. Having said that, the average business in an "active area" will spend about $1,600/month and about $400/month for a "slow" or "not active" area.

What do we call "active", and what do we call "slow"? To judge whether an area is "active" or "slow/not active" we look at 2 main indicators:

  • Density of population
  • Size of the target area

The way we look at these indicators is simple. If the area you are targeting is dense in population, and your service area extends over several miles, then you are in an active area. Good examples of active areas are: Los Angles, Miami, Dallas, Phoenix, Detroit, etc... Active areas are not always large metro areas, but the two often go hand-in-hand.

While $1,400 can be considered the overall average monthly spending, it is an average. Some businesses will spend much more than that depending on what they sell.

Considering a 20 miles radius in an active area, the following represents a realistic guideline:

Auto body:$2,000/month
Auto repair:$3,500/month
Auto sales:$5,000/month
Carpet cleaning:$2,000/month
Equipment rental:$2,000/month
Family law:$3,000/month
General dental:$1,800/month
Hair salon:$1,500/month
Health club:$1,500/month
Luxury auto:$2,500/month
Personal injury law:$9,000/month
Plastic surgery:$2,500/month
Pool cleaning:$1,600/month
Real estate sales:$2,500/month
Water removal:$8,000/month
Weight loss:$5,000/month

The above numbers will be greatly different if you are not in an active area. For instance, while pool cleaning services will run you around $1,600/month in an active area, it could be as low as $400/month in an area that isn't active. This figure is absolutely not related to the average income per household. If you are in a millionaire area but there are few people scattered over 20 miles, your monthly spending on Google will be little compared to a lower income area that is highly populated. This is due to the fact that the more people there is in an area, the more people will, statistically, click on your ad.

You will also notice that the cost of advertising on Google in only peripherally related to how much income you will make from the advertising. For instance, it is much cheaper to advertise Ferrari sales than Ford sales. This is because the cost of advertising is based on a cost-per-click (for every time someone clicks on your ad on Google), and number of actual clicks. The more people searching, the more people clicking, the more people clicking the higher your competitors are willing to pay per click... More people buy Fords, more people sell Fords = advertising Ford is substantially more expensive than advertising Ferrari (less sales, less dealerships).

Another important note is that every business is different. You will see on the list above that I put Plastic Surgery at $2,500/month and Dermatology at $3,500/month. But if you consider a plastic surgery office that would offer facials and some dermatology services, then advertising it would be far more than $2,500/month. The more services offered, the more people searching Google and clicking on the ad, the more expensive it is.

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Article date: Jul. 23 2014

Article type: Internet Advertising


  • Advertise On Google
  • Cost
  • Business
  • Monthly Spending
  • Sell
  • Services