PPC Cost In 2024

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How Much Does PPC Cost in 2024?

May 20, 2024
12 min read

As a marketing agency, we know how important pay-per-click advertising is for businesses looking to generate leads. Most business owners know that PPC is a powerful medium for targeting active buyers and generating high-quality leads. However, most of them do not try PPC services because they are unaware of the costs and think it is expensive. But trust me, that’s not the case at all, especially when you look at the ROI. The ROI PPC campaigns provide is better than any other platform available.

But to talk about returns, we need to know how much we need to invest, and what the cost of the PPC campaign is.

The cost of your PPC campaigns varies depending on various factors such as your industry, your business size and the platform you target. Let’s deep dive into these factors, providing you with an insight into how PPC works and how you can manage your PPC campaign in the most effective way possible.

What is a CPC Bid?

The cost of a PPC campaign varies depending on the CPC bid, but before we delve deeper into the cost, what is a CPC bid? 

A CPC bid, also known as a Cost-Per-Click bid, is what you pay when someone clicks on your ad. CPC bid is a very common word in PPC marketing, especially on platforms like Google. Your bid influences not just what you pay for each click but also where your ad shows up compared to others.

In Google Ads, ad rank is the position of your ad in a Google search result. This rank comes from your CPC bid and your ad’s Quality Score. The Quality Score measures how relevant and high-quality your ad is, taking into account things like how likely it is to get clicked.

You can choose to set your CPC bid in two ways. Either go manual and specify the highest amount you’re willing to pay per click or let the platform do it for you with automated bidding strategies. These automated options adjust your bids based on how likely each click is to help you meet your goals, like increasing sales or generating leads.

How Much Does PPC Cost in 2024?

In 2024, the cost of Pay-Per-Click (PPC) advertising vary widely depending on several factors. For example, business niche, the competitiveness of the keywords you choose, the quality of your ads, and the targeting settings you select can all impact how much you end up paying for each click. If you don’t optimize your campaign properly, you may have higher CPC bids and a more expensive PPC campaign overall.

PPC Cost by Industries

Generally, industries with higher competition, such as legal services, insurance, or financial sectors, tend to have higher average costs per click (CPC).

Another important point is that B2B companies usually have lower Google Ads costs than B2C companies. This is because B2B companies target a more specific audience of professionals and businesses, which means there’s less competition. This can be really cost-effective for businesses. So, if you’re a B2B company looking to advertise on Google, you might want to keep this in mind to get the best results for your budget.

For 2024, the average PPC ad spend across various industries reflects the cost-per-click (CPC) values and the competitive nature of each market. Here’s an estimated average monthly PPC spend for each industry based on the provided CPCs and typical industry competition levels:

  • Legal Services: Given the high CPC of around $6.72 and the need for a significant volume of leads to justify these costs, legal firms might spend between $5,000 to $15,000 per month on PPC.
  • Insurance: With a similar high CPC of approximately $6.40, insurance companies also tend to have substantial budgets to compete effectively in PPC. Average monthly spending in this sector can range from $3,000 to $12,000.
  • Home Services: For services like home repair and improvements, with a CPC of $6.36, companies usually spend around $2,000 to $5,000 monthly, depending on the geographic reach and service range.
  • Dentists and Healthcare Services: This sector sees more moderate CPCs, around $2.32 for healthcare and slightly higher for dental services. Typical monthly spending might range from $2,000 to $4,000, focusing on local advertising.
  • E-commerce: E-commerce businesses face a wide range of CPCs, averaging about $1.16. Their PPC spending can vary greatly, from $2,000 to upwards of $15,000 monthly, highly dependent on the scale and competitiveness of the market.
  • Education: With a CPC of about $2.40, educational institutions and service providers often allocate $1,000 to $5,000 monthly to PPC, targeting specific educational programs and resources.
  • Automotive: Dealerships and automotive service providers, facing a CPC of $2.46, typically spend between $4,000 and $8,000 monthly on PPC, influenced by local and broader market competitions.
  • Travel and Hospitality: This industry competes for tourists and travelers. With a lower CPC of $1.53, the average PPC spend ranges from $1,000 to $5,000 monthly, especially as the sector recovers and competes post-pandemic.

PPC Cost by Platforms

Another important point to consider when deciding how much to spend on PPC advertising is that the spending can vary a lot depending on which platform you’re using. Each platform is designed for different audiences and engagement methods. Here’s a broad overview of how ad spending can differ among these popular platforms.

  • Google Ads: Google Ads is the most popular PPC advertising platform. It is a very powerful platform to attract active buyers searching for your service or product. It reaches a lot of people through its Search and Display Networks, making it a favorite for both big and small companies. The cost of Google Ads varies depending on the keywords you want to run the ads for. Some keywords may have a CPC bid of $1, or some highly competitive keywords may have a very high CPC bid going up to $20. So, it varies according to your keywords.
  • Meta Ads (Facebook and Instagram): Presently, Meta Ads are top for many PPC advertisers. The platform allows you to target users according to their interests, behavior, job profile, gender, etc. Meta ads allow you to run ads on Facebook and Instagram. Both platforms have an excellent level of engagement. They are excellent for industries that depend on how things look: fashion, beauty, and lifestyle. Facebook has a more extensive demographic representation and caters to local businesses and global brands. Meta ads can be cheaper than Google ads. However, it highly relies upon targeting the quality and ad market saturation. Therefore, you should consider all these factors when planning your advertising strategy.
  • LinkedIn Ads: Another good option for B2B marketing is LinkedIn Ads. They are generally more expensive per click than other platforms. Yet, LinkedIn is among the best options for professional audiences and high-quality leads. You can use it if you need to sell targeted professional services, high-price B2B products, or promote higher education. Moreover, you can target people by their job title, industry, and seniority level. Isn’t it awesome? As with other types of ads, the cost of LinkedIn ads will depend on the target audience and marketing strategy.
  • YouTube Ads: YouTube’s video advertising might be the best option for you if you’re thinking about boosting your brand’s visibility and impact. Unlike text ads, video ads on YouTube come with a variety of pricing options, and these depend on the kind of ad format you pick, how precisely you target your audience, and the duration of your ad campaign. It’s a fantastic way to engage users with visual storytelling, product demonstrations, or just interactive video content. So, if you want to make a real splash, consider diving into YouTube’s video advertising opportunities.

PPC Cost by Business Size

It’s really interesting how the cost of pay-per-click (PPC) advertising can vary based on the size of the business. Small businesses and larger enterprises have different approaches. Small companies might focus on specific local or niche markets, which can reduce their PPC spending needs. On the other hand, larger businesses with a national or global reach may have more competitive and broader PPC strategies, leading to higher costs.

In 2024, the average PPC management costs vary significantly based on the size of the business and the scope of their advertising campaigns. Here’s a breakdown:

  • Startups: Typically, startups might spend between $300 to $1,000 per month on PPC management.
  • Small Businesses: Small businesses generally allocate $1,000 to over $10,000 monthly for PPC management.
  • Medium-Sized Businesses: These businesses often have monthly PPC budgets ranging from $10,000 to over $500,000.
  • Large Enterprises: At the high end, large corporations might spend between $500,000 to $100 million or more monthly on PPC campaigns.

What Are the Options for PPC Management?

When it comes to running a successful PPC campaign, one key factor to consider is how you plan to manage it effectively. Remember, it’s not just about running a PPC campaign; it’s about generating the best ROI from it.

Here are some of the main options for you to consider when managing PPC campaigns:

  • In-House Management: You can manage your PPC campaigns internally using your own team. This will require you to hire a team of PPC experts and ad copywriters to run your PPC campaigns and keep your PPC costs in check, yielding the best results. Having an in-house team gives you the best control over your team, but it might be risky if you don’t know how to select the right PPC expert for you. In-house team management can also demand a lot of your management time as well as a more significant investment in the salaries of the team.
  • Freelance PPC Managers: Hiring a freelancer can be a flexible and cost-effective option. They can offer specialized expertise in PPC and might be a good choice for smaller campaigns or for businesses looking to scale without committing to a full-time position. However, it can be challenging to work with freelancers because they may work on their own schedule and not always be professional. On the other hand, working with an experienced freelancer can be quite rewarding. 
  • PPC Management Agencies: There are a lot of white-label PPC marketing agencies that provide comprehensive services, including keyword research and ad creation, campaign monitoring, and optimization. They have teams of experts who manage multiple accounts and can bring a wealth of experience and advanced tools to the table. A professional white-label agency can be a good choice if you want to outsource your PPC marketing. This can be cost-effective, as most white-label agencies would only charge a certain percentage of your PPC advertising budget, and they can offer great value and a better customer experience than freelancers.
  • Hybrid Approaches: Some businesses choose a combination of these options. For example, they might use automated tools for some tasks while overseeing strategy and decision-making in-house or collaborating with a freelance expert or agency.

All of these options have pros and cons, but you need to consider your requirements, budget, and campaign size before choosing the right option.

How Does PPC Ad Management Pricing Work?

After considering factors like CPC bids and average monthly budget and deciding what budget range suits you, you need to consider another cost, especially when you decide to outsource your PPC ad management. It is the PPC campaign handling/management fees that your marketing agency or freelancer would charge you for managing your PPC campaigns.

Here are various ad management pricing options available:

  • Flat Rate PPC Pricing: This is less common, but there are certain marketing agencies or freelancers who charge a fixed cost for managing your ad campaign. They bill you a fixed price once a month/quarter, depending on your agreement, to manage your PPC campaign irrespective of your PPC ad spend.
  • Percentage of Spend: The most common model is when agencies or white-label PPC management firms charge a percentage of the total ad spend, typically ranging from 10% to 20% of the monthly ad spend. This model turns out to be a preferred option as campaign management efforts increase with the increase in ad spend. So, PPC companies can charge higher prices for bigger campaigns.
  • Performance-Based Pricing: This model is becoming more and more popular. In this model, you pay only when you get sales or leads. A lot of businesses are starting to like this, as they only pay when they get any output. But many marketing agencies do not seem to prefer this approach, as they do not get paid for the work they do and therefore, it proves to be a non-profitable option for the agencies.
  • Hybrid Models: Some businesses opt for a combination of the above models to balance risk and control costs. For example, a company might pay a base management fee plus a percentage of spend or a lower base fee combined with performance incentives.

The PPC costs and the needed ad spend vary depending on the size of the business, industry, target audience, and platform. Plus, there is an additional cost associated with PPC management fees.

Consider all factors and determine the best budgeting option for you. But most importantly, check how much you can comfortably spend. Plan your marketing budget to get the best return on investment. Ultimately, ROI matters!

Kshitij Chaudhary