Useful information on the cost of advertising on Google in 2023
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Many people are looking for information about the price of setting up contextual advertising and its subsequent support, which is why we decided to write detailed information on the cost for individual types of advertising, contractors, stages of work, etc. First of all, let's look at what advertising on Google is and what types it consists of.
Google advertising is online advertising that is shown to users based on their intentions, interests, location, search queries, and a number of other factors.
The vast majority of calculations related to the timing and price of advertising on Google were analyzed based on simple and medium-complexity projects, according to those that were carried out in our studio. Separate calculations were carried out based on market analysis
The cost of advertising on Google depending on the stages of work
In fact, many factors influence the price of setting up Google ads, but the key ones are the contractor you entrust with the setup, what type of advertising is needed, and how many stages the contractor uses during setup. Let's first briefly consider the stages of work, and then get acquainted with the types of advertising and the cost of setting up advertising with a particular contractor.
Niche and market research
This stage is designed to familiarize the team of specialists with your business, product/service, as it would be done by the client:
First of all, price comparison is taken into account
Then the following criteria are taken into account - For the service sector - what is included in this cost - For the sale of goods - production and delivery times
After which guarantees, reviews and everything in that vein are monitored
After that, a TOR is formed, for transfer to other specialists who will work on the advertising strategy:
The cost of such pleasure will depend on the type of business:
Business type
The cost of niche and market research
Small
Від 300$
Medium
Від 550$
Great
Від 800$
Site analysis
The next stage of work is site analysis. This analysis can include:
Landing pages are studied for the possibility of implementing micro and macro conversions
The site content is reviewed to find visual errors.
The usability of the site is analyzed and checked in different browsers, devices, etc.
The functionality of all site forms is checked and an approach for setting up conversions is determined
Tests are carried out on the site functionality, from the client's side, for possible errors
If bugs are found, or if the site is «raw», a technical task is written to improve it from a marketing point of view, and a separate TOR is also written for specialists who will work with the technical setup of advertising
The cost of this stage usually depends on the type of site:
Site type
Cost per analysis
Landing-page
150-200$
Corporate
from 350$
Online store
from 400$
Integrating tools into the website
The third step is to connect the necessary services/scripts to the site for further work and configure them. This stage includes connecting and configuring:
Google Analytics
Hotjar
Ecommerce Setup
Remarketing Code Setup
The cost of this stage will depend on the number of tools needed and the types of sites they need to be integrated into, so it is difficult to determine prices. However, for the general picture, you can refer to the following table:
Site type
Number of services
Cost
Landing-page
1-2
250-350$
Corporate
2-3
from 350$
Online store
3-4
from 400$
Analysis of launched ACs from competitors
This stage involves the following work:
Identifying direct competitors
Searching for possible platforms where they advertise
Comparing their advertising creatives/text ads
Calling competitors and your managers (to compare customer handling), conversation analysis and recommendations for errors for your managers
The cost of this stage will depend on the type of business and the number of competitors being analyzed. A summary cost table based on 6-8 competitors would look something like this:
Business type
Cost for services
Small
200-300$
Medium
300$ - 800$
Great
from 800$
Collection and clustering of SC
This stage is inherent only when setting up contextual advertising and plays a significant role in determining the price of contextual advertising. The work of this stage consists in collecting all possible search queries that are necessary for displaying advertising and their clustering. Clustering is usually done according to the following principles:
Grouping keywords that are expected to generate the most sales (hot queries)
Grouping queries that are likely to generate sales (warm queries)
The cost of this stage is estimated depending on the number of hours of work spent, but to estimate it by the number of search terms, you can use this table:
Number of requests
Cost for SC
up to 500
250 - 300$
500-1000
300$ - 400$
1000-1500
400$-500$
from 1500
from 500$
When setting up other types of advertising, this stage is replaced by the creation of advertising creatives (photo banners or videos). The approximate cost for them is given in the table below.
Name
Cost
Creation of 3-5 advertising banners
150-200$
Creating video creatives
from 700$
Writing ads for each ad group
At this stage, specialists start writing advertisements. The cost of this stage will depend on the number of unique advertisements and the number of clustered groups. Usually the cost of writing one unique advertisement is 1-2$.
Technical setup of the AC and launch
Designed for technical settings of advertising in Google ADS according to a well-thought-out strategy (based on the TOR from specialists), creating a structure according to the clustered SY, transferring prepared advertisements/creatives to the advertising cabinet, setting up conversion and other technical work.
The cost of this stage is influenced by many factors, starting from the number of collected keys and the location of advertising display (locally, for Ukraine) ending with the type of site and the number of groups for the target audience. Therefore, the approximate cost of technical settings for different projects for one language will look like this:
Site type
GEO
Cost
Landing page
Locally
120-200$
Across Ukraine
200-300$
Corporate website
Locally
250$-350$
Across Ukraine
300-400$
Online store
Locally
300$-400$
Across Ukraine
400-400$
The cost of contextual advertising according to all stages
Having analyzed all the stages, let's consider what the cost of setting up Google advertising will be. At first glance, it may seem that the price will be very high, so let's make a table of it for small businesses.
Stage name
The cost of contextual advertising
Niche and market research
300$
Site analysis
150$
Integrating tools into the site
250$
Analysis of launched ACs from competitors
200$
Collection and clustering of SC
250$
Writing advertisements
50$
Technical setup of Google ADS
200$
Together
1400$
The table shows that the cost of setting up Google advertising for a small business will start at $1,400. Not a small amount, right? Especially when you see the price of advertising in Google on websites from $300-500. However, there is an explanation for everything. Let's make a new table and it will be clear why such a price is written on websites, and what stages the setup consists of according to that cost
Stage name
The cost of contextual advertising
Collection and clustering of SC
250$
Writing advertisements
50$
Technical setup of Google ADS
200$
Together
500$
As can be seen from the table above, most of the stages are skipped to reduce the cost of the service. However, neglecting them can lead to an increase or decrease in the advertising budget in the future. Therefore, before making such decisions, you should think carefully. We always provide examples of several price options for setting up Google advertising for our clients, and explain their differences.
Also, many people think that this cost will be the same for other advertising channels, but this is not so, since many of these stages are done once and used when working with other advertising channels. Therefore, doing integrated marketing is always more profitable than individual types of advertising.
Types and cost of advertising on Google
In our work, we very often hear the phrase: “What is the price of contextual advertising?”. It’s good when people really understand what contextual advertising is and really mean its cost. However, there are cases when they are actually interested in other advertising, and ask about contextual advertising. Therefore, to avoid further confusion, let’s consider what types of advertising are on Google and what their cost is in Ukraine.
Contextual advertising is an online advertisement that is shown to users when they perform certain search queries. It is one of the most popular advertisements on Google. This type of advertisement is best suited for the service sector. It is shown above and below the search results (as shown in the photo below)
Schematic representation of product contextual advertising on Google
Terms and price of setting up contextual advertising
Number of keywords
Setting terms
The cost of contextual advertising
Up to 200
5 days
350$
200-500
7 days
430$
500-1000
10 days
590$
1000-1500
14 days
810$
from 1500
from 15 days
from 980$
The cost of monthly support for contextual advertising
Number of keywords
Price of support and optimization of contextual advertising
Up to 200
250$/month
200-500
330$/month
500-1000
380$/month
1000-1500
400$/month
from 1500
500$/month
Terms and cost of product advertising
Product ads are a type of Google advertising that appears to users when they search for a specific product. It is the most popular solution for online stores. These ads appear above and to the right of the search results (as shown in the photo below).
Schematic representation of product advertising on Google
Schematic representation of product advertising on Google in the images section
Terms and price of product advertising setup
Number of product groups
Setting terms
Cost of product advertising
Up to 3
5 days
350$
3-5
7 days
430$
5-10
10 days
590$
10-20
14 days
810$
from 20
from 15 days
from 980$
Cost of monthly support for product advertising
Number of product groups
Price of product advertising support and optimization
Up to 3
250$/month
3-5
300$/month
5-10
370$/month
10-20
420$/month
from 1500
500$/month
Do you think online marketing is expensive?
We will dispel these thoughts. For comprehensive and long-term cooperation, we have great discounts, you can find them here
Banner advertising price and setup times
Banner advertising (display advertising) – found on various Google partner sites. It is used both when selling goods and services. The most effective use of this type is to launch remarketing campaigns. Visually, you can see it as shown in the photo below
Schematic representation of display advertising (DBA) on Google
Terms and price of banner advertising
Name
Setting terms
The cost of display advertising
One-time setup
4 days
350$
Monthly support
30 days
230$/month
Creation of up to 10 advertising banners
2-3 days
200-250$
Cost and timing for video advertising
Video advertising is another type of advertising on Google. Most often, such advertising can be seen on YouTube, and this is not surprising, since it is the most popular platform where such advertising is displayed. This advertising is usually used during company branding. The most popular type of such advertising is In-stream. In general, video advertising (depending on the type) is displayed as in the following photos
Schematic representation of YouTube advertising
Video advertising terms and prices
Name
Setting terms
Video advertising cost
One-time setup
7 days
450$
Monthly support
30 days
250$/міс
Creating video creative
from 6 days
from 700$
Pricing and timelines for setting up remarketing
Remarketing is one of the online advertising tools that is capable of showing advertising to users who have visited a site but have not taken a targeted action on it. For example, imagine that there are users who add a product to the cart and for some reason do not complete the purchase. Accordingly, remarketing tools allow you to collect such users into a specific audience and make personalized advertising for them.
Cost and timing of remarketing
Name
Setting terms
Remarketing cost
One-time setup
5 days
420$
Monthly support
30 days
200$/міс
Creation of up to 10 advertising banners
2-3 days
200-250$
Creating video creative
from 6 days
from 700$
You may also be interested in the formation of the cost of services:
A team for professional setup and management of the advertising campaign
Many people believe that 2-3 specialists will be enough to launch and support an advertising campaign. However, from the agency's perspective, it looks different. Therefore, let's consider which specialists should be involved and calculate the cost of contextual advertising, product advertising and remarketing according to the specialists involved.
As mentioned above, the work of a certain specialist will be considered in terms of setting up contextual, product advertising and remarketing.
Project manager. A specialist who monitors the quality of the project and communicates between you and the team. Sometimes they are assigned tasks to create reports and discuss them with you.
Marketer. A marketer has a number of tasks that are assigned to him when setting up advertising in Google. These tasks include: niche and competitor analysis, site analysis, analysis of launched PRs by competitors, writing advertisements according to the conducted analyses and writing TOR for a PPC specialist, graphic designer and developers. After launching the PR, he conducts analyses of advertising effectiveness, predicts results and makes recommendations for changes.
PPC specialist. He conducts all technical settings of Google advertising according to the TOR and analyses provided to him by the marketer. In addition, he collects the PR, is engaged in its grouping, creating a list of minus words (to optimize the budget during launch). Also, after launching the PR, he conducts effectiveness analyses and is engaged in its optimization.
Graphic designer. This specialist starts working when companies are set up for marketing. He creates advertising creatives (photo banners) based on the requirements set by the marketer
Frontend and back-end dev. Such specialists are involved in setting up product advertising, e-commerce for Google Analytics and when setting up remarketing.
Other specialists. Other specialists include those who are connected to the project upon a specific request.
The price of Google advertising relative to the time of specialists
Now we can start calculating the price of setting up contextual advertising, product advertising and remarketing. When calculating, we will take a small online store that sells its goods in certain regions of Ukraine as a basis and go through all the recommended stages that were considered above.
Specialist
Working hours
Hourly cost ($)
Cost of specialist ($)
Project manager
20
8$/hour
160$
Marketer
80
6$/hour
480$
PPC specialist
96
7$/hour
672$
Graphic designer
32
4$/hour
128$
Frontend dev
8
10$/hour
80$
Backend dev
5
15$/hour
75$
Total hours: 241
Average cost per hour of work: $6.6
Cost of setting up Google advertising: $1,595
Do you want an individual calculation for your project?
For an individual calculation you will need:
Detailed information about the project
Account ID, to check the current advertising (if it is running or has ever been run)
Links to your direct competitors
Your expectations from advertising (number of leads - calls, form filling, product sales, etc.)
The price of setting up Google ads depends on the contractor
It is obvious that the quality of services and the price of Google advertising will differ from contractor to contractor. However, to understand how much the cost will differ (unfortunately, we will not be able to make a comparison about quality), you should compile tables for each contractor. To compile tables, we will follow the example for which the table was compiled above
Freelance team
It is clear that freelancers will not go through each stage of work. For them, the main task is to quickly complete the project and move on to the next one. Therefore, the approximate cost situation with this contractor will look like the following:
Specialist
Working hours
Hourly cost ($)
Cost of specialist ($)
PPC specialist
70
5$/hour
350$
Graphic designer
50
4$/hour
200$
Full-stack dev
20
8$/hour
160$
The cost of setting up Google advertising:
710$
Digital agency
Such a contractor will be the best option for small and medium-sized businesses. He has an acceptable price for services and proper quality. The work can go through all stages, or omit some, if you need to save money. For example, consider the option of Google advertising prices with the omission of some stages
Specialist
Working hours
Hourly cost ($)
Cost of specialist ($)
Marketer
40
16$/hour
640$
PPC specialist
45
18$/hour
810$
Graphic designer
20
12$/hour
240$
Front-end dev
2
24$/hour
48$
Back-end dev
1
39$/hour
39$
The cost of setting up Google advertising:
1777$
Specialized company
It should be understood that there should be 3 such contractors. Separately, a marketing company, separately, a design company, and separately, a development company. The cost of specialists in these companies is higher compared to digital agencies. Medium and large businesses can usually afford the services of such companies. Let's make a table for the same hours of work per project as in digital agencies, but with the price of a specialist as in a specialized company
Specialist
Working hours
Hourly cost ($)
Cost of specialist ($)
Marketer
40
21$/hour
840$
PPC specialist
45
22$/hour
990$
Graphic designer
20
16$/hour
320$
Front-end dev
2
30$/hour
60$
Back-end dev
1
50$/hour
50$
The cost of setting up Google advertising:
2260$
TOP web studio in Ukraine
Such a contractor is the most expensive in terms of the cost of providing services, but its quality will be at the highest level. These contractors are chosen exclusively by well-known brands or large businesses. The cost of setting up Google advertising according to the same criteria as discussed above will be approximately the following
Specialist
Working hours
Hourly cost ($)
Cost of specialist ($)
Project manager
12
20$/hour
240$
Marketer
40
28$/hour
1120$
PPC specialist
46
25$/hour
1150$
Graphic designer
15
20$/hour
300$
Front-end dev
1
45$/hour
45$
Back-end dev
1
60$/hour
60$
The cost of setting up Google advertising:
2915$
Brief summary of this section
For a more convenient comparison of the price of setting up Google ads, let's make a table consisting of all contractors.
Contractor
Which business chooses a particular contractor?
The cost of setting up Google advertising
Freelance team
Startups, sole proprietorships
710$
Digital Agency
Sole proprietorship, small and medium-sized businesses
1777$
Specialized agency
Medium and large businesses
2260$
TOP web studio in Ukraine
Big business and famous brands
2915$
The table makes it clear what price range a particular contractor works with and what businesses typically order services from such contractors.
Turnkey advertising in our agency
Many people reading this material on prices do not fully understand what the price of Google advertising would be for their project. Especially when it is planned to work with several types of advertising or advertising channels. Therefore, we decided to consider an example based on one of our projects
Let's take the Nortberg project as a basis - an online store selling premium hoods. The project came to us in the following state: a freelancer was initially engaged in advertising on Google, then an agency (however, they were not satisfied with the quality of cooperation and decided to make changes), and they did not engage in SEO-promotion of the site at all. Based on this, we had to do a lot of work on SEO, partially change the structure of the site and, in general, the approach to advertising. However, this is not the point now (if anyone is interested in reading about the project itself, go to the project page), since we need to determine the list of services and their cost. To do this, let's make a table with the services that were provided and the average monthly cost for them based on annual cooperation.
List of work
Service type
Contextual advertising: setup, management and optimization
We have considered the approximate price of advertising on Google for its settings, but what about the advertising budget? How it is formed, what it depends on, what payment models are available, and much other useful information will be considered in this section.
What does the cost of advertising depend on?
The main factors that affect the advertising budget include:
Type of advertising. I think everything is clear here, for example, let's take a company selling goods (a small or medium-sized online store). The advertising budget of contextual advertising to close the same number of goals (conversions) will be much larger than in product advertising. This is explained by the fact that for such a business, product advertising will work better if it is only about the conversion of the sale of goods.
Competition. The greater the competition, the more money you need to invest in advertising and the more expensive the end customer will be Site size. As they say, size matters =). For example, if you have a landing page selling a certain group of goods, the advertising budget will be much smaller compared to the budget that should be invested if you have an online store with a large group of goods.
Payment model. The advertising budget will also be affected by which payment model to use, since the cost of obtaining an end customer will be different with different models.
How to evaluate advertising effectiveness?
Typically, specialists use tools to assess the effectiveness of advertising. The most popular is Google Analytics. Specialized tools allow you to evaluate a lot of useful information, for example:
How individual users interact with the site (how long they scroll and what they click on)
Number and value of conversions according to given criteria
Other useful behavioral factors: bounce rate, time spent on the site, depth of view
When our clients order a contextual advertising service, we always monitor its effectiveness according to various criteria and improve the result as much as possible based on advertising budgets and competition.
Traffic payment models
In general, there are three traffic payment models:
Pay per click (PPC). With this model, payment will be deducted from the advertising budget each time a user clicks on an ad and lands on your site. This model is the most popular on the market among both advertising platforms and advertisers.
Advantages and disadvantages
Transparency in payment
Simple calculation of traffic
Payment for attendance
Possible probability of clicks
Payment per click, usually higher than for views
There is a minimum bid that must be set to get an ad impression and a conversion
How it works
The cost of a click is formed according to the auction principle. Roughly speaking, whoever pays more will be shown higher and will have a better chance of being redirected to their resource.
Who is it suitable for?
Suitable for businesses that provide services and sell goods.
Pay per view. This model involves withdrawing funds for each view of an advertisement by a user. Usually, the cost is estimated for 1000 views. For Ukraine, the cost of 1000 views is $4 on average. However, the cost will be different in different topics, it all depends on the competition.
Advantages and disadvantages
Ability to collect more audience data
Ability to track CTR of individual banners and reach statistics
Lowest advertising payment model
High CTR of ads is required for best effect
It is impossible to predict the number of clicks to the site
Payment is made every time a user sees an ad, even if one person sees it several times
How it works
The price is also formed according to the auction principle. The winner of the auction will pay not his own bid, but the competitor's bid + the amount of the next step (usually on most advertising platforms it is 10 kopecks).
Who is it suitable for?
For businesses that want to promote their brand and enhance their company image
For businesses that want to show users the release of a new product
Pay for actions or leads. CPL – a model of payment for leads (receiving a phone number, email, other useful information). Funds are withdrawn when the client enters the information specified in the offer. CPA – a model of payment for an action (watching a video, registering on a service, subscribing to a newsletter, etc.). Pay for an action usually brings much better results compared to the CPC or CPM model. However, it is not recommended to use it in the early stages of advertising. The cost of such a model, depending on the business and competition, can range from $10 to $200
Advantages and disadvantages
Pay only for targeted actions
Payment is the most expensive compared to others.
Low conversion rate
Possibility of fraud (by filling out forms with spam)
Difficult to track user targeted actions
How it works
The cost per action is charged due to the achievement of certain conversions that are set up in the account. It does not matter how many times the ad is displayed and clicked on.
Who is it suitable for?
Suitable for businesses that sell goods
For companies that sell goods in different countries and have a competitive price
Which model is more profitable for business?
Each payment model is appropriate for certain business goals and has a number of advantages for them. In addition, the cost of the advertising budget will differ depending on the chosen method. No one can immediately tell you what will be effective in your business, since the market situation is constantly changing, machine algorithms are also changing, so everything needs to be adjusted to these factors. If we summarize the results for each model, it will look something like this
CPA is the safest for business, because from its point of view, the business pays only for targeted actions. However, to launch it, there must be statistics for more than one month and properly configured analytics for analysis.
CPC is the most convenient model in operation, which is suitable for different areas of activity and for different businesses. If the site's conversion rate is low, then the cost of one conversion from this model can be very high. Therefore, before proceeding with it, you should close all issues regarding the site from a marketing point of view.
CPM is a model that can prove itself in the hands of professionals who know how to achieve high CTR indicators. However, here you also need to take into account the nuances of the site from a marketing point of view. If the site has good conversion rates and the CTR of advertising is good, then the cost of one conversion from such a model will not be very expensive.
In this section, we have reviewed the most popular payment models. However, there are a number of other models. You can read more about them in our blog.
Cost of consultations on setting up contextual advertising
Many people, including owners of beginning entrepreneurs, small sole proprietorships or startups, try to set up and run advertising campaigns on their own to save money. However, it is difficult for such people to understand what mistakes they make during their work and how this can turn out in terms of draining the advertising budget. Therefore, in order for you not to make mistakes, we have an online consultation service with a PPC specialist. We will consider how it works and when it should be ordered below.
How is it going?
You open access for us so that we can review the results of advertising
A PPC specialist conducts analyses and writes recommendations to improve results and save money
After which we double up and go through each point in detail. If something is not clear to you, we explain
With ready and understandable recommendations, you can make adjustments to advertising yourself
When should you book a consultation?
When you set up advertising yourself and don't understand whether you did it correctly
When you run advertising campaigns yourself and want to make sure that the budget is not being wasted
When you want to understand which type of advertising is better to leave and which to disable
It is difficult to track the user's targeted actions
Would you like to book a consultation to review and improve your advertising investments?
Google ADS audit cost – $50/hour
The cost of consultation, according to the audit, is $30/hour.
What affects the cost of contextual advertising and advertising investments in it?
The most important factor in the cost of services will depend on which contractor you order them from and what stages you will go through with them before launching advertising. You can read about the factors that affect advertising investments in the section: What does the cost of advertising depend on
What is ROI?
ROI is an indicator that allows you to understand whether all investments in a business are paying off or not. For example, if your business expenses for a certain period were 1 UAH, and the income for the same period was 3 UAH, then this means that the ROI will be 200%. The formula for calculating ROI will be as follows:
ROI = (revenue - investment) / investment * 100%.
How can you improve CTR?
First of all, you should work on your ads. They should answer questions that the client has during their search query. In addition, you should also check your work with:
ad display time and geotargeting
analyze traffic from devices
analyze search queries and expand them (if possible)
and of course study competitors and do better than them))
Which model is more profitable to choose, CPM or CPC?
In fact, it is quite difficult to answer this question, since there are many determining factors. Therefore, we suggest considering two models in real work and drawing a conclusion.
Company X received 200,000 impressions and 150 conversions in a week. If the average cost per conversion was 3 UAH, then the costs for the CPC model for this company would be 450 UAH, and for the CPM model – 600 UAH.
Company Y worked quite well with advertising settings. It clustered keywords well, worked with geotargeting, devices, ad display time, audience, etc. During the week of advertising, it received 100,000 impressions and 300 conversions. The average cost per conversion is also 3 UAH. In this case, the costs for this company under the CPC model would be 900 UAH, and under the CPM model – 300 UAH.
Why is the price of advertising on Google lower here than elsewhere?
This is explained by the fact that we are committed to long-term cooperation and a comprehensive approach to marketing. For all clients who order services from us for 6 months or more, we provide discounts. In addition, if you order several types of marketing services, for example, contextual advertising in Google and SEO-site promotion, the cost of services will be calculated according to the selected complex. Of course, if you order not a complex, but individual services, then their cost will be the same as in most digital agencies.
Are you interested in cooperation and have a few questions?
You can also write to us at:
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