The topic of how much "normal" firms spend on Google Ads as part of their overall online marketing expenses is sometimes asked after someone inquires about the average cost-per-click of a PPC ad. Unfortunately, there is no simple answer to this query either. But it doesn't mean we can't provide you with some further information regarding the average amount of money spent by businesses on paid search. We must first examine the total spend information by industry.
How much does the average company spend on Google Ads?
According to the average CPC statistics below, the top five terms with the highest level of competition are:
1. Insurance
2. Online education
3. Legal
4. Marketing & advertising
5. Internet & telecom
The following industries, according to our most recent search advertising benchmarking study, had the highest average costs per click:
1. Attorneys & legal services ($8.67)
2. Dentists & dental services ($6.49)
3. Home and home improvement ($5.75)
4. Finance and insurance ($5.16)
5. Business services ($4.90)
The sectors with the greatest average cost per lead also have a lot of overlap:
1. Attorneys & legal services ($73.70)
2. Furniture ($64.72)
3. Finance and insurance ($62.80)
4. Business services ($62.18)
5. Career and employment ($53.52)
As you can see, businesses in the insurance and legal sectors invest the most in Google Ads each month. Big businesses in the aforementioned areas can spend $40 to $50 million annually, but this isn't exactly information that would be helpful to a potential advertiser who is still unsure about Google Ads. Good news: You don't have to spend millions on Google Ads to make them effective for your company.
How much money do small companies invest in Google Ads?
As you may anticipate, small businesses spend a wide range of amounts on PPC. Some people spend $1,000 to $3,000 per month on Google Ads, for industries like real estate, home services, and healthcare.
In our most recent vertical benchmarking studies, we discovered the following:
- Real estate: $1,000 - $2,000 per month
- Home services: $700 - $3,000 per month
- Healthcare: $500 - $2,000 per month
The monthly range for mid-sized businesses and agencies, meanwhile, is $7,000 to $30,000. From the smallest mom-and-pop store to the middle-sized PPC firm, historically, we've observed an average of $9,813 a month spent on PPC advertising. Even while that still covers a vast range, you can at least get a sense of where you fall on the spectrum.
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