How Much Does Google Ads PPC Cost in Canada?


Previously Google Adwords, now simply called Google Ads, is an exceptional paid advertising method to include in any marketing strategy. Paid advertising campaigns like pay-per-click (PPC) can help boost ROI for the short-term while your organic marketing methods take roots gradually over months and years — creating a perfect balance. But just like any new tactic or approach, it’s important to weigh the costs and benefits. How much will Google ads PPC cost you to launch? And more specifically, how much will it cost for businesses to launch PPC campaigns in Canada? Let’s dive in.

How Much Do Google Ads Cost?

If we ask the big question “How much do google ads cost?” directly, the only accurate answer would be “it depends”. There isn’t a straightforward answer to this as there are several factors that go into the cost of Google Ads. To start, it’s important to note that Google Ads alone covers many things — from display ads to search ads. Additionally, there are different costs that add up to form your entire Google ads budget for the month. Small to medium-sized businesses can find themselves spending anywhere around $1000-2000 per month on PPC to yield significant results, although you can always set that budget higher or lower. The cost also depends on the aim of your campaign — whether you want clicks, calls, or conversions.

There are a couple of costs to consider when running Google ads and those are:

  • Cost per click — Also known as cost per visit, this is the most notable figure in Google PPC ads. It refers to the cost of a single real user’s click to your website. Cost per click rates in Google Ads are typically lower and range anywhere from a couple of cents to a couple of dollars on average.
  • Cost per conversion — Is like one step up from a cost per click. It’s the cost of a user who clicks on your website and then converts into a real, profitable client instead of a potential one. A cost per conversion rate is typically higher since you need to consider the amount of profit that you gained with the conversion as well. A cost per conversion can be anywhere from $20 to around $100 and more.

Digi-Tip: Whether you are opting for in-house or outsource Pay-per-click (PPC) advertising services, set out a budget beforehand and stick to it for some time. Then, assess the analytics to determine what parts of the campaign you can add/remove budgeting for better results.

Google Adwords PPC Cost By Industry

Google ads cost for PPC can actually vary by industry as well due to the simple fact that some are more common, competitive, and profitable than others. A high-profit industry like insurance, for example, is more likely to have a higher average price for PPC ads.

Let’s take a look at a comprehensive breakdown of the average rates of Google pay-per-click advertising among Canadian businesses in 2020, organized from most expensive to least in terms of CPC.

Insurance — $4.26
Marketing & Advertising — $2.90
Legal — $2.49
Online Banking — $2.30
Internet & Telecom —$2.27
Online Education — $1.85
Automobile — $1.50
Home & Garden — $.97
Beauty & Skincare — $.87
Travel — $.83
Pharmaceuticals — $.79
Fitness & Health — $.72
Real Estate — $.56
Jewelry — $.56
Cryptocurrency — $.52
Fashion Retail — $.45
Electronics — $.32

Digi-Tip: A costly click isn’t necessarily a bad thing, but make sure the price of the click or lead isn’t more than the return on investment from the average user.

How To Lower Your Pay-Per-Click Advertising Cost

What if you want to launch a PPC campaign in one of the most costly industries and don’t want to allocate copious amounts of your marketing budget to it? It’s possible to organically decrease PPC costs by implementing a few tactful approaches that perhaps your competition isn’t considering right now. You’ll be able to work around the high cost per click and still notice effective ROI without breaking the bank. To do that, consider the following strategies:

  • Target long-tail keywords — Do you have any long-tail keywords included in your current strategy or are you only relying on short ones? Long-tail keywords are hidden treasures since not many people possess the skill to use them naturally and effectively so they decide to avoid them altogether. In reality, long-tail keywords are more specific and increase your chances of getting conversions, all while securing a low cost per click.
  • Target low-volume keywords — While long-tail keywords are often low-volume ones, not all low-volume keywords are long-tail. There can be certain variations of keywords that are simply less costly than others and that can be the case for synonyms of certain words. For example, the keyword ‘watch’ may be more costly than ‘timepiece’ and so on.
  • Focus on your quality score — How high or low your quality score is can impact not only the cost per click but also how relevant your ad is considered by the search engine. A quality score of 8 to 10 is considered very good and there’s always room for improvement if your score doesn’t fall under that range yet.
  • Lower your bids — Another way to lower the price of your current clicks is to lower keyword bids. Besides affecting the position of your ads, it can also lower the cost because your ad drops down from your secured first position to second or third. You may not notice much or any change in ROI by doing this but still save on your cost per click.

Want an experienced specialist to handle your business’ PPC instead of heading into uncharted waters by yourself? Digilite is ready to help boost your online exposure in the most cost-effective way possible.

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