Google Advertising Costs Per Conversion
Always fresh Google ad cost data from hundreds of millions of spend.
How Much Do Google Conversions Cost?
Ooof. It’s not a straightforward answer. TLDR: There is no set price for Google ads.
But your cost per conversion is calculated based off your average cost per click, multiplied by your conversion rate.
If you want to bid on cost per conversion, Google looks at your target industry, your competition, and the campaign type to set the cost.
Costs can start as low as $5 per conversion and max out at thousands of dollars per conversion (actually, there’s no limit).
A general benchmark to tuck in your pocket is around $30 to $90 per conversion (which is generally cheaper than LinkedIn Ads conversion cost and more expensive than Facebook Ads cost per conversion). But you can carve that cost down by adjusting your bid and tweaking campaign elements.
Like LinkedIn Ads, Facebook Ads (Meta), and Instagram Ads (Meta), a Google Ads campaign runs in an auction environment. That means you compete for ad space, bidding against other advertisers.
Unlike a traditional auction, the highest bidder doesn’t win the prize. It certainly helps, but ad cost changes based on a list of levers:
- The supply and demand of your target keyword
- The industry that will see the ad
- How good the ad looks (design) and sounds (copy)
- The format (Google search ads, display ads, video ads)
- Engagement (Do your ads stand out? Are they relevant to your audience?)
- Targeting criteria: same or non-same across ad campaigns and ad groups.
- Advertising budget (accelerated/total/daily/monthly Google Ads spend)
- Schedule and seasonality (competitive swings)
- Your objective: are you waving your brand flag around or searching for buyers?
- Past performance
Google rewards advertisers who manage these levers best with a lower cost per conversions won. But the end cost will only match your desired cost if your ads perform well.
To calculate cost:
Cost per Conversion = Cost / Conversions
Conversion Rate = (Conversions / Clicks) * 100
You control some things about your Google Ad campaign — like max daily ad spend — but Google controls the total cost based on three things:
- Competitor bids
- Your CTR
- Bid modifications
Competitor Bids
CTR & Quality Score
Bid Modifications
The straightforward part: What is the maximum dollar amount your competition will pay (the bid ceiling) to get a conversion? Can you compete here? The answer should be yes: step up to the table, pay to play, and play to win.
Google cares about bids. But Google cares more about how well your ads will perform to secure those conversions. High performers cost less.
CTR measures how many clicks your ad gets after showing it so many times. If your ad flops, your CTR reflects that. But if people like your ad, the click rate tells Google to show it more—and at a discount.
Google taps into years of historical ad metrics to predict the CTR of your ad based on ad relevance (how closely your ad matches search intent). After you press play, a high click-through rate confirms to Google that people like your ad more than competing ads.
When this happens, your quality score goes up, and you get a better deal on your average conversion cost.
Bid modification [*yeehaw, playahs*] puts the power of conditional logic in your hands. Google lets you to fine-tune your ad campaign by working IFTT (if this then that) conditions on your bids. Reel in your bid or bid harder based on different scenarios:
If [this condition] then [bid more/less]
For example:
If [this location] then [↑ increase bid by 50%]
If [this day] then [↓ decrease bid 30%]
If [this device] then [double down, yo!]
Go ahead and stack your modifications. Then Google calculates the value your bid, CTR, and modifications might offer the world.
Google wants to show off the best ads in the Googleverse. That’s why highly relevant, engaging Google ads cost less, and poor performers cost more to compete for ad space.
The Google Ads Cost Equation
The best ads have a high total value, calculated by looking at advertiser skill and consumer experience.
Advertiser value = your bid multiplied by Google’s performance prediction (estimated action rate).
That’s two-thirds of the battle.
The other third is how people receive your ad (consumer experience).
Your bid, Google’s prediction of ad success, and people’s reaction to your ad form the overall value. If that works out to be high, you’re set to get the most ROAS from your Google Ads budget.
Google is rooting for you, so if your first ad campaign trips and falls, brush yourself off and get to work improving your quality score by
- testing ad copy
- refining your keywords
- working your landing page to align better with search intent.
Do this and watch ad relevance and user experience go up as Google Ads Cost goes down.
Use our Google Ads cost charts above to find the average cost by your campaign objective.
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1
Why is my Google cost per conversion so high?
If you really want to know why your average cost per conversion is so high? Contact KlientBoost, and we’ll tell you. But here are some things to consider:
Industry-Specific Keyword Ranges
- Low-Competition Niches: For low-competition industries (like niche services or products), the cost per conversion is as low as $5 to $25.
- Mid-Competition Industries: In more competitive spaces (e-commerce, online education, or software), typical costs per conversion might range from $25 to $100.
- High-Competition Industries: Highly competitive industries (legal, insurance, finance, and medical sectors) see higher costs, with conversions of $100 to $300 or more.
Targeting and Audience Factors
- Broad vs. Narrow Audiences: Broad targeting can sometimes yield a lower cost per conversion, especially if there’s a large, untapped audience. Narrow targeting (e.g., specific demographics or high-intent keywords) has higher conversion costs.
- Location Targeting: Costs can vary by region. High-cost regions (like major cities) may have a higher cost per conversion.Targeting less competitive regions lowers costs.
Bidding Strategy
- Maximized Conversions: If Google Ads is set to maximize conversions, it will try to get as many conversions as possible within the budget, but this can sometimes lead to higher costs per conversion in competitive spaces.
- Target CPA (Cost Per Acquisition): With a specific CPA goal, Google Ads will aim to stay within that target, though results depend on competition and budget.
Average Cost per Conversion by Network
- Search Network: Cost per conversion on Google Search can range from $10 to $200 depending on the keywords and competition.
- Display Network: Display Ads generally have lower costs per conversion, often in the $5 to $50 range, but the intent tends to be lower than search.
General Average Cost Per Conversion
- Averages across industries indicate a general range of $30 to $90 for many campaigns, but averages don’t reflect specific campaigns or keyword competitiveness.
2
Is Google Ads worth the cost?
Yes. If you execute it correctly (which is why so many of our readers get a free marketing plan from us).
Running Google Ads is an investment. The return on that investment (ROI) often justifies the cost due to
- High search intent and audience reach
- Versatile ad formats for different goals (awareness, conversion)
- Detailed targeting options
To optimize Google Ads, focus on creating relevant ads, leveraging keyword research, and testing bid strategies. Your Google Ads costs depend on audience competitiveness, Quality Score, and campaign objectives.