Are you wondering, how much do Google Ads cost in 2025? Whether you’re new to pay-per-click (PPC) advertising or already running campaigns, this question is probably top of mind. Your budget is a critical factor in determining how effective your ads will be. In this guide, we’ll break down the key factors influencing Google Ads costs, give you realistic expectations, and provide tips to maximise your advertising spend.

How does Google Ads pricing work?

• Your industry: Firstly, the industry that you operate in can greatly dictate your CPC. Highly competitive industries like legal services or insurance often have higher CPC rates, sometimes exceeding £20 per click.
• Keywords: The keywords that you decide to target will greatly impact your ad spend too. Keywords with with high-demand then to have greater competition. This can push the push the prices of these up. The term “motorcycle injury lawyer” had a average CPC of a whooping $210 (Fraud Blocker, 2025).
• Location: The areas you choose to advertise in play a major role in the cost of advertising. Advertising in central London tends to be more expensive than in smaller cities.
• Ad quality: This is a metric that Google internally scores based on three core factors: the relevance of your keywords, landing page, and click-through rate. The lower your quality score, the higher your CPC tends to be.
• Bidding strategy: Your bidding strategy dictates the maximum amount you’re willing to pay per click. Depending on the strategy you employ, such as maximise clicks or manual CPC, your average cost can vary greatly.
• Seasonality: Certain times of the year, such as Black Friday or the Christmas season, see increased competition, which can drive up costs. While peak periods can attract the most customers, they are also the most expensive times for advertisers.

Understanding the factors above is the first step in learning about the costs associated with Google Ads and how to make your budget stretch further.

What is the price of Google Ads?

If you’re considering investing in Google Ads, understanding the average industry costs of running campaigns can help you determine how much to allocate for your advertising budget. We’ve used WordStream’s industry benchmarks as a reference.

Running the campaigns in-house

While this can be a risky strategy for those with little experience in running Google Ads, if you still plan to manage the campaigns yourself, the following costs apply:

• CPC (cost per click): The average CPC across all industries ranges from £1 to £2. However, competitive niches such as finance, law, and healthcare can have CPCs as high as £20 or more.
• Monthly ad spend: For small businesses, the average monthly ad spend typically falls between £500 and £2,000. Larger companies with aggressive campaigns may spend over £10,000 per month. We recommend setting aside a minimum of £1,000 per month for new clients. This budget allows us to gather the necessary data to make informed optimisations to your account.

Running the campaigns with a freelancer or digital marketing agency

Working with an experienced freelancer or marketing agency typically comes at a premium. While this adds to your overall ad spend, partnering with someone who knows what they’re doing can save you hundreds, if not thousands, in the long run.

• Google Ads management fees: If you’re hiring an agency to manage your campaigns, expect to pay an additional 10% to 20% of your monthly ad spend in management fees.

What you can expect to pay for Google Ads in the UK

To give you a clearer picture, let’s look at some real-world examples based on the figures above and our personal experience working with clients across various industries:

• A pharmacy based in London might spend around £1,000 per month targeting terms like “travel clinic near me,” with a CPC of approximately £2.50.
• A roofing supplier targeting the city of Derby could spend around £500, targeting keywords like “roofing supplies,” with a CPC of around £1.
• An e-commerce store running Google Shopping ads might have a monthly ad spend of £2,000, with CPCs ranging from £0.50 to £2, depending on the product category.

How to make your Google Ads budget for further?

Managing your Google Ads budget effectively is key to ensuring your campaigns remain profitable and you can grow your business sustainably. Here are some tips that our agency employs to make your budget go even further:

Managing your Google Ads budget effectively is key to ensuring your campaigns remain profitable and that you can grow your business sustainably. Here are some tips that our agency employs to make your budget go even further:

1. Set a daily budget: Google Ads allows you to set a daily cap, ensuring you never spend more than you’re comfortable with.
2. Focus on high-intent keywords: Prioritise keywords that indicate strong purchase intent, such as “buy,” “get,” or “services near me.”
3. Use negative keywords: These prevent your ads from showing up for irrelevant searches, saving you money on unqualified clicks.
4. A/B test your ads: Experiment with different ad copies to see which ones perform best, and allocate your budget accordingly.
5. Monitor campaign performance: Regularly review your campaign’s metrics, such as CPC, CTR (click-through rate), and conversion rate, to identify areas for improvement.
6. Adjust your bids accordingly: From your reports, if you see that certain devices, locations, or demographics are delivering a better return, allocate a higher portion of your budget there. The key is to double down on what’s working.
7. Bring in an experienced PPC advertiser: While you’ll have to spend more, the right PPC advertiser will pay for themselves and more. The simple reason being that they’ve learned the best and latest practices to get the most return from your ads.

Is Google Ads worth the cost?

Running Google Ads isn’t worth it for every business. Each company has its own unique situation. To determine if it’s worth the investment for your business, consider the following:

• Lifetime value (LTV) of customers: If your average customer spends significantly more than your CPC, Google Ads can be highly profitable.
• Competition: If your competitors are running Google Ads, it’s likely worth exploring to remain competitive. You could be losing out to new customers to them.
• Budget: Start small and scale as you see results. Google Ads allows you to test different strategies without committing to a massive budget upfront.
• New sales funnel: You can’t have more than enough sales funnels. For example, during Covid many brick and mortar stores struggled as there primary sales funnel was footfall. Google Ads can open up a brand new sales funnel and reach new customers.

Final Thoughts

To cap off our guide, you probably know by now that running Google Ads isn’t cheap. There’s a reason why advertisers are spending millions on campaigns – a trend that is likely to continue. Understanding the costs associated with Google Ads can help your business plan effectively. Optimising your campaigns efficiently will maximise your return on ad spend. Start small, focus on high-intent keywords, and continually refine your strategy to maximise your ROI.