What Is The Average Cost of PPC Campaigns In 2023?
Abisola Tazanko | Oct 25, 2023
Pay-per-click (PPC) advertising offers a potent opportunity to ensure your goods and services are in front of the right audience, helping you build brand awareness and increase sales.
The average cost of PPC campaigns depends on a number of factors as well as your goals. Companies as large as Apple and as small as your local bakery can invest a portion of their annual marketing budget in paid advertising. Your costs, platforms, budgets, and return on ad spend vary by size, industry, and even time of day.
How much does online advertising cost?
It changes a lot. This may be the most unprecise answer possible, but it’s the most honest. The cost of a PPC ad campaign is usually based on average CPC (cost per click) on Google Ads, Bing, or social platforms like Facebook. Remember that CPC can vary significantly depending on your target keywords, competition from industry competitors, and seasonal changes. You’ll need an in-depth eye across all your platforms to optimize your Google Ads costs.
Average PPC advertising cost
Finding the proper budget for your PPC campaigns requires careful consideration of the costs associated with successful campaigns. On average, companies with effective advertising campaigns invest between 9,000 and 10,000 USD monthly. However, it’s important to remember that these numbers can vary depending on the company size, industry, and campaign goals.
Industries like finance and insurance allocate significantly higher budgets to PPC advertising, outperforming other industries. These industries together invest a total of $1.2 billion in PPC campaigns. Retailers are also investing heavily in online advertising. Individual businesses spend around $40-50 million annually on Google AdWords alone. Amazon allocates more than $50 million yearly to its PPC advertising strategy.
These significant investments demonstrate the potential returns and effectiveness of well-executed campaigns with sufficient resources. However, businesses should analyze their industry, size, and marketing goals to determine the appropriate budget for their PPC efforts.
Google Ads Costs – Averages and Variations
The average CPC on Google AdWords is between $2 and $4 for search. The industry with the highest CPC costs is legal services, with an average cost per click of more than $8. Home deco advertising is also consistently higher than other industries, averaging over $6.
Industries with longer sales cycles and higher service costs require larger budgets. You’ll get the most out of every click with an experienced paid media team.
Why Google Ads?
Google Ads has been one of the most profitable digital marketing strategies for decades. Even when factoring in paid media management fees, the cost of Google Ads is far less than what the business benefits regarding revenue and brand awareness.
Market Share: Google Search accounts for around 85% of the global search market, meaning the majority of internet users start their journey with Google.
User Intent: Targeting the right keywords will ensure quality clicks among qualified users. Unlike roadside billboards or ads in your local newspaper, Google ads are only shown to users actively searching for information about specific products or services. These users also click on ads; Google Ads results get 65% of the clicks on the search results page, compared to 35% of organic results.
Manage spending: As your priorities and goals change, so does your budget. Google Ads offers excellent flexibility to adjust your ad spend based on specific keywords, placements, and scheduling to maximize your paid media budget and ROI.
Paid advertising costs across social media
Google dominates display and search advertising, but the paid social media environment needs to be consolidated. Big players like Meta (i.e., Facebook and Instagram), Twitter, and Pinterest face increasing competition from TikTok and other small, growing platforms.
Social media advertising is based on two metrics: CPC, which makes it easy to compare performance with Google, and CPM (cost per thousand), which is the cost of 1,000 impressions. CPM is typically more about awareness because it measures how many users saw your ad and whether they took action.
Cost of advertising on Facebook
The average CPC on Facebook is about $0.44, with an average CPM of $14.40. This makes it one of the most affordable and cost-effective social media platforms for advertisers, which is why it is the most popular social media channel. Brand used.
Cost of advertising on Instagram
Instagram has fewer users than its big brother, Facebook, but Meta is Instagram’s goldmine of steady paid revenue. While there is a lot of demographic overlap, Instagram tends to have a slightly younger audience and has many features that influence user behavior on the platform. Instagram doesn’t give a specific average but says the average CPC is between $0.20 and $2, with a CPM of $6.70.
TikTok advertising costs
TikTok’s ad revenue has exploded since 2020, growing 139.9% year-over-year in 2022 and with an expected increase of 36% in 2023. That’s more than double LinkedIn’s revenue growth, ranks second, and is expected to reach another 16.3% by 2023. Although TikTok only accounts for 2.3% of social media advertising spending, this number could double by 2027 to exceed $36 billion.
Much of this will depend on its competitive pricing. TikTok reports an average CPC of $1 and an average CPM of $10, although it is slightly less flexible than other platforms. ‘Tok is the only major social media platform that requires a minimum budget of at least $50 per day and $50 per campaign. Ad sets on the platform must cost at least $20. For large companies, this is fine. For small businesses, this level of spending can be prohibitive.
When implemented effectively, a well-designed PPC campaign, combined with the right pricing package, can produce exceptional results and contribute greatly to the success of your online advertising efforts. By continuously optimizing your PPC strategy and taking advantage of the right pricing plans, you can connect with your audience, outperform your competitors, and propel your business to lasting success.