How much does it cost to advertise on Google UK?

16th October 2023

If you're new to Google Ads or planning a campaign for a different product or service, you might be wondering about the factors that will affect the budget requirement and return-on-investment.

When it comes to the question of cost, one of the most common, but not necessarily helpful answers you might get from industry experts is “it depends”. There’s a lot at play when it comes to the success of a PPC Campaign, including the quality of the ad and landing page, the competitiveness of your products or services, and sometimes the time of year.

To make things simpler and to help give a rough idea of what it might cost to successfully advertise on Google, we’ve analysed thousands of search keywords across a range of industries to calculate the average Cost Per Action (CPA) for each industry.

Jump to section:
Median Google Ads Cost Per Click by industry
Cost per action (CPA)
What’s my conversion rate?
Average Google Ads CPA by industry

• Baby & Toddler
• Events & Leisure
• Media & Entertainment
• Fitness & Nutrition
• Vehicle Maintenance
• Travel
• Restaurants & Catering
• Property
• Healthcare
• Education
• Home Improvement
• Business & Office
• Finance & Insurance
• Legal
• Marketing Agencies
• Software

Is there a minimum budget for Google Ads?
What can I do to improve my Google Ads CPC and CPA?
Conclusion

Median Google Ads Cost Per Click by industry

Using our own insights and data from the Google Ads Keyword Planner, we've generated thousands of relevant keywords for a range of different industries. We've used the top of page bid (low range) figures from Google to record the estimated cost per click for each keyword.

The CPC figures we've used are essentially the minimum that Google thinks will get your ad at the top of the page, it may deviate depending on the level of competition and any seasonal influence, for example.

We've calculated the median CPC per industry to give us a reliable figure for comparison purposes, not affected by any unusually expensive keywords which might be at the top of the list.

We've combined these Cost Per Click figures with a scale of conversion rates (2% - 4%) to provide an estimation of Cost Per Action (CPA) by industry. Keep reading to see the full breakdown.

Cost per action (CPA)

CPA is the standard metric to measure the return on investment of an ad campaign. It’s a simple calculation of the Cost Per Click (CPC) divided by your conversion rate. You can also calculate CPA generally across a range of different paid marketing channels by dividing your total spend on marketing by the number of conversions you received in the same period.

For example, 50p cost per click with 4% conversion rate = £12.50 per conversion. Based on this, with a monthly budget of £1000, you could expect an average of 80 conversions.

The best CPA can be achieved from keywords with lower cost per click, and from website landing pages with high conversion rate.

What’s my conversion rate?

Whilst overall conversion rate varies significantly between industries, when it comes to measuring converions from search marketing, most experts believe the average conversion rate is around 3%.

The definition of a conversion may differ depending on the action you expect to get from your ads.

For example, an ecommerce website selling products will expect a conversion to be someone completing the checkout for one or more items. On the other hand, a local trade may measure an ad conversion as a request for a quote from a potential customer.

Therefore, when comparing the CPA across Google Ads campaigns or keywords, the true cost of completing a sale may be higher or lower, depending on the rest of the sales journey.

Average Google Ads CPA by industry

Starting from our lowest median CPA, the Baby & Toddler industry has a median CPC of just 18p. On the low end of the CPC scale we have “18 month milestones” at 2p, and on the high end, “weaning formula” at £4.96. That’s quite a range that likely relates to search intent (whether someone wants to buy something or is just looking for information).

Based on the median CPC, CPA at 3% conversion rate is £6, 2% is £9, and 4% is £4.50.

We noticed when trying to research baby and toddler related search terms, that many keywords were automatically removed. This is usually due to some terms being deemed a "sensitive topic", as is likely imposed by laws and regulations around the world covering baby products. It might make setting up a campaign a bit harder.

Amongst keywords including those related to concerts, theatre shows, festivals and art exhibitions, the median CPC sits at a relatively low 26p. An example from the low end of the scale is “comedy tours” with a CPC of 3p, and on the high end we have “craft shows near me this weekend” at £1.62.

Based on the median CPC, CPA at 3% conversion rate is £8.67, 2% is £13, and 4% is £6.50.

The cost of Google ads for the media & entertainment industry has an average CPC of 35p. On the low end of the scale we have keywords like “baking games” at 5p, and on the high end searches such as “best movies on apple tv plus” at a price of £5.09 per click.

From the median CPC, CPA at 3% conversion rate is £11.67, 2% is £17.50, and 4% is £8.75.

The ad pricing for the fitness & nutrition industry has an average CPC of 37p. On the low end of the scale we have keywords like “is greek yogurt good for you” at 2p, and on the high end, “tibetan yoga” at £6.47 per click.

From the median CPC, CPA at 3% conversion rate is £12.33, 2% is £18.50, and 4% is £9.25.

From our research, the vehicle maintenance industry has an average CPC of 39p. On the low end of the scale we have keywords like “motorcycle restoration” at 2p, and on the high end, “onsite tyre replacement” at £2.01 per click.

From the median CPC, CPA at 3% conversion rate is £13, 2% is £19.50, and 4% is £9.75.

The travel industry also has a median CPC of 39p. On the low end of the scale we have keywords like “train prices” at 3p, and on the high end, “galapagos tours” at £1.87 per click.

From the median CPC, CPA at 3% conversion rate is £13, 2% is £19.50, and 4% is £9.75.

We checked thousands of keywords covering services such as office catering, local takeaways, and restaurant reviews. We found a median cost per click of 42p. An example from the low end of the scale is “tripadvisor restaurants” with a CPC of 1p, and on the high end we have “office catering delivery” at £4.74.

From the median CPC, CPA at 3% conversion rate is £14, 2% is £21, and 4% is £10.50.

Our Google Ads research shows the property industry (also known as real-estate in some parts of the world) has an average CPC of 52p. On the low end of the scale we have keywords like “cottages for sale near me” at 3p, and on the high end, “sell my house” at £13.47 per click.

It would seem that when it comes to property, there is more competition for targeting people that want to sell, versus people that want to buy.

From the median CPC, CPA at 3% conversion rate is £17.33, 2% is £26, and 4% is £13.

When calculating the cost of advertising relevant terms in the healthcare industry, we found an average CPC of 74p. Keywords ranged from terms such as “mental health testing” at 3p, to “implant dental clinic near me” at £2.52 per click.

From the median CPC, CPA at 3% conversion rate is £24.67, 2% is £37, and 4% is £18.50.

Based on our keyword research, the education industry has an average CPC of 80p.

On the low end of the scale we have keywords like “english test practice” at 13p, and on the high end, “best online training platform” at £11.55 per click.

From the median CPC, CPA at 3% conversion rate is £26.67, 2% is £40, and 4% is £20.

The home improvement industry, covering various repairs and refurbishments around the home, came in with a median CPC of £1. On the low end of the scale we have keywords like “runway carpet” at 11p, and on the high end, “sash window quote” at £9.28 per click.

Our cost per click research here focussed on professional services rather than DIY, therefore the search intent is more likely to be “get a quote” rather than just information.

From the median CPC, CPA at 3% conversion rate is £33.33, 2% is £50, and 4% is £25.

Median CPC jumps to £1.46 as we reach the B2B focussed “business and office” industry, covering almost 3000 keywords from office furniture and stationary supplies, to outsourced supply chain management. On the low end of the scale we have keywords like “small business expos” at 57p, and on the high end, “EOR HR” at £38.49 per click.

From the median CPC, CPA at 3% conversion rate is £48.67, 2% is £73, and 4% is £36.50.

From our findings, the finance and insurance industry has an average CPC of £1.57. On the low end of the scale we have keywords like “locked in retirement account” at 7p, and on the high end, “secured loan” at £25.07 per click.

From the median CPC, CPA at 3% conversion rate is £52.33, 2% is £78.50, and 4% is £39.25.

Advertising services in the legal industry has an average cost per click of £1.86. Keywords ranged from terms such as “speed camera fine” at 3p, to “injury at work no win no fee” at £29.98 per click.

From the median CPC, CPA at 3% conversion rate is £62, 2% is £93, and 4% is £46.50.

From over 2000 marketing agency targeted search terms, we calculated a median CPC of £2.50. Keywords ranged from terms such as “interactive agency” at just 22p, to “amazon ppc management agency” at a cost of £21.19 per click.

From the median CPC, CPA at 3% conversion rate is £83.33, 2% is £125, and 4% is £62.50.

Topping our chart for the most expensive average Cost Per Click, the software industry has a median CPC of 3.02. Keywords in our research ranged from terms such as “screenshot app” at 9p, to “brand protection software” at a pricey £48.79 per click, based on data from Google.

We have recent personal experience with the cost of advertising SaaS on Google Ads, with “click fraud protection software” coming in at around £14 per click. According to historic Google Ads data, our competitors have even spent over £100 per click on occasion.

From the median CPC, CPA at 3% conversion rate is £100.67, 2% is £151, and 4% is £75.50.

Is there a minimum budget for Google Ads?

One of the great things about advertising with Google is that you don’t need to spend much at all to get started. Unlike other platforms, there is no minimum spend on Google Ads.

To make it worth setting up a campaign though, you should work out how many conversions you want to aim for, to make sure your budget is adequate.

For example, with an average CPA of £8.50, if we want to get 100 conversions, we will need to spend £850. This is obviously dependant on your conversion rate, better websites will get more conversions for less money.

What can I do to improve my Google Ads CPC and CPA?

As we've seen above, a small change to your conversion rate can drastically affect the performance and cost of your Google Ads campaign.

On the high street, a professional looking shop with friendly staff is more likely to do well than somewhere with hard to find products and slow service (assuming the pricing is also similar).

The same applies to the web. There's little point in wasting money bringing visitors to your website if it delivers a poor experience. Potential customers will seek the reassurance from a business that looks professional and trustworthy.

A fast, easy to use, and professional looking website is the foundation for good conversion rate. You can build upon this by offering "trust signals" like verified customer reviews, accreditations, social media presence, and guarantees.

Aside from conversion rate, you can also bring down costs by improving your Google Ads Quality Score. A high Quality Score will result in your ad showing in a better position in the Google Search results, with the same or lower cost per click than an ad with a worse quality score.

The quality score is affected by factors like your website loading time, the relevancy of the keywords and ads to your landing page, and how easy it is to use your website across different devices.

It's also worth being aware of who is clicking your ads to make sure that your budget isn't being drained by competitors, robots and disgruntled customers. You can read more about how to prevent click fraud here.

Conclusion

Across all of our selected industries, we have seen an average cost per click of 99p, which equates to £32.98 per action based on a 3% conversion rate. That's likely higher than a lot small business owners would have guessed, but as we've seen above, it really does vary not only on your industry, but the specific product or service.

If you haven't already, we recommend looking at the Google Ads Keyword Planner to get an idea of the cost, competition, and amount of traffic you can expect when advertising specific keywords and topics. There's other tools out there offering keyword research, but Google's keyword planner is completely free.

We hope this research provides some help in knowing what your costs could be based on real data. We know that there are many factors that could make your actual costs distant from our estimates, and with any new campaign, it usually takes some trial and error to get your choice of keywords, ad copy and strategy refined to deliver a worthwhile return on investment.

Written by Will @ PPCFilter (Over 10 years digital marketing experience, agency and client side)

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