How much do Google Ads cost? A practical guide for UK businesses

Google Ads can be one of the most effective ways to drive traffic and leads to your website, but one of the most common questions we hear is: “How much will it cost?"

The answer is not always straightforward. Unlike traditional advertising, where you pay a set rate for space or time, Google Ads works on an auction model. This means what you spend depends on your goals, industry, and how well your ads perform.

In this guide, we explain how Google Ads pricing works, what influences the final cost, and how you can make sure your budget is being used wisely.

How Google Ads pricing work

Google Ads runs on a pay-per-click (PPC) system. You only pay when someone clicks on your ad, not just for having it displayed. How much you pay per click depends on a few things:

• Your maximum bid is the highest amount you are willing to pay for a click.
• Quality Score reflects how relevant your ad and landing page are to the user’s search.
• Competition refers to how many other advertisers are bidding on the same keywords.

This auction happens every time someone performs a search. The better your ad and landing page, the less you may pay per click, even if your competitors are bidding higher.

What affects the cost of Google Ads?

Google Ads costs vary widely based on:

1. Your industry
   Some industries have much higher competition than others. For example, legal and finance sectors can see cost-per-click (CPC) rates upwards of £5-£10, while niche e-commerce terms may cost under £1.
   
   
2. Your location
   Running ads in London or other major cities usually comes with more competition and higher costs compared to rural or regional areas.
   
   
3. Your target audience and devices
   Campaigns targeting mobile users, business owners, or high-income groups can cost more, depending on demand.
   
   
4. Your ad relevance and quality
   Google rewards well-written, relevant ads with a higher Quality Score, which reduces your cost per click.
   
   
5. The time of day or year
   Prices can go up during busy seasons, like Christmas for retailers or end-of-financial-year for B2B services.

What do UK businesses typically spend?

There is no single right answer, but here are some general benchmarks for small to mid-sized businesses in the UK:

Cost per click (CPC):

• Low competition keywords: 50p – £1.50
• Moderate: £1.50 – £4
• High competition: £4 – £10+

Monthly ad spend (on average):

• Small local businesses: £300 – £1,000
• Mid-sized businesses: £1,000 – £5,000
• Larger or national campaigns: £5,000 – £10,000+

Remember, these figures are just ad spend. If you work with an agency like Method, there may be additional management fees, depending on your package.

How to make your budget go further

If you want better returns without overspending, consider these tips:

• Start with a focused campaign - Don’t try to advertise everything at once. Start with your most profitable or popular services.
• Use negative keywords - These prevent your ads from showing up for irrelevant searches, saving you money.
• Split-test your ads - Run multiple versions to see what works best and refine over time.
• Optimise your landing pages - A well-designed, relevant landing page will improve conversions and your Quality Score.
• Set a realistic budget and adjust weekly - Monitor your results and scale what is working.

Should you use an agency?

Managing Google Ads can be time-consuming, especially if you are new to PPC. Working with a performance-led agency like Method can help you:

• Identify the right keywords and targeting
• Write compelling ads that convert
• Monitor and optimise campaigns continuously
• Get better results without wasting spend

We focus on clear reporting and ROI, not vanity metrics, so you can see exactly where your money is going.

Final thoughts

Google Ads can work for almost any business, but the cost will depend on your industry, competition, and the strength of your campaigns. A well-run ad account can deliver strong leads and sales at a cost that makes sense.

If you are thinking about launching Google Ads or want to review your current strategy, we are here to help.

Need help getting the most from your Google Ads budget?

Get in touch for honest advice, no-nonsense performance tracking, and support that helps your business grow.