What is PPC?
Paid Ads, also known as Pay-Per-Click (PPC), means you pay every time someone clicks your ad, so prices can change significantly based on your field, business, and other factors such as location. What should you expect to pay for PPC in 2025 (and why)?
Prices for PPC can range a lot, from around a few hundred dollars a month to more than a hundred thousand dollars a month. The cost largely depends on the industry and its level of competitiveness. The geographical location factor also carries significant weight. On average, a business might spend between $500 and $20,000 a month, but it can be significantly higher.
This guide explains the various pricing options for PPC, the factors that influence costs, and how to select the right PPC service. In simple terms, we cover what you’ll pay, how you pay it, why costs vary, and whether is PPC the right choice for your business.
PPC Cost Calculator
How much should PPC cost?
PPC costs anywhere between $500-$10,000 a month on average, depending on the number of ad campaigns you’re running, the average cost per click (CPC) in your industry and what platform you are using to run ads on. There are a few dozen different PPC platforms (Ad Networks) that are widely used, with Google being the most popular one. Here is a table breaking down the average Cost-Per-Click for different PPC platforms:
| Platform | Cost-Per-Click |
|---|---|
| Google Ads (Search) | $2.60 |
| Google Ads (Display) | $0.63 |
| Meta Ads (Facebook) | $0.60 |
| Meta Ads (Instagram) | $0.50 |
| X Ads (Twitter) | $0.38 |
| LinkedIn Ads | $5.58 |
| Microsoft Advertising | $1.90 |
PPC Auction
Here’s a simple explanation of how a Pay-Per-Click (PPC) auction works:
- Someone Searches or Browses: Imagine typing “best running shoes” on Google Search.
- Instant Auction Trigger: Instantly, Google/Facebook triggers a hidden, lightning-fast auction among advertisers who want to show their ads for that search or to that viewer.
- Advertisers Bid (But It’s Not Simple):
- Advertisers don’t just bid “how much they’ll pay per click.” They actually submit two main things:
- Maximum Bid: The highest amount they’re willing to pay for a click (e.g., $3.00).
- Ad Quality Score: A secret score the platform gives them based on how relevant/useful their ad and landing page are to the search/viewer. (Good ads get a high score).
- Advertisers don’t just bid “how much they’ll pay per click.” They actually submit two main things:
- Who Wins? (It’s Not Just the Highest Bidder):
- The platform doesn’t just pick the advertiser who bid $3.00 over someone who bid $2.50.
- It calculates an Ad Rank for each advertiser:
Ad Rank = Maximum Bid x Quality Score. - The advertiser with the highest Ad Rank wins the top spot!
- Why? This rewards advertisers who create relevant, helpful ads (high Quality Score), even if their bid isn’t the absolute highest. It makes the ads you see more useful.
- What Do They Pay? (Second-Price Auction):
- The winner does NOT pay their full maximum bid ($3.00).
- They pay just $0.01 more than what it would take to beat the Ad Rank of the advertiser belowthem.
- Formula:
Actual Cost Per Click = (Ad Rank of Advertiser Below You / Your Quality Score) + $0.01 - Example:
- You bid $3.00, Quality Score = 10. Your Ad Rank = $3.00 * 10 = 30.
- Next best advertiser: Bid $2.50, Quality Score = 8. Ad Rank = $2.50 * 8 = 20.
- You win the top spot.
- You pay:
(20 (Next Ad Rank) / 10 (Your Quality Score)) + $0.01 = $2.00 + $0.01 = $2.01.
- Ad Shows & You Click:
- The winning ad appears in the top position (or other ad spots).
- Only if you actually CLICK the ad does the advertiser pay that calculated cost ($2.01 in the example). No click = no cost.
In Simple Analogy:
Imagine an auction house where people bid for a billboard space visible only to one specific person at a time.
- Bidders shout out how much they value the space AND hold up a sign showing how good their billboard ad is.
- The auctioneer doesn’t just pick the highest value shout. They multiply the value shout by the quality of the ad sign to get a “Total Appeal Score.”
- The highest “Total Appeal Score” wins the billboard spot.
- The winner only pays based on the score of the second-place bidder (enough just to beat them), divided by their own ad quality, plus a penny. They don’t pay their full shouted value.
- They only pay if the specific person actually looks at their billboard (the click).
Key Strengths of Different PPC Platforms
| Platform | Target Audience | Key Strengths |
|---|---|---|
| Google Ads (Search) | General users, High-intent users | Extensive reach, robust targeting, high intent |
| Google Ads (Display) | General users, Lower-intent users | Visual content, affinity audience |
| Meta Ads (Facebook) | Wide audience, Millennials | Detailed audience targeting, visual formats |
| Meta Ads (Instagram) | Wide audience, Gen Z | Visual content, strong engagement with younger users |
| X Ads (Twitter) | Tech, Crypto, Millennials, Gen Z | Short informational content, strong engagement within certain industries |
| LinkedIn Ads | Business professionals | B2B targeting, professional audience |
| Microsoft Advertising | Older generation | Lower CPC than Google, strong demographic targeting |
Factors Affecting PPC Costs
Getting a grip on what impacts your PPC costs is really important for making your campaigns work better and maximizing your returns.
Let’s break down the main factors that can change your PPC costs:
CPC by Industry
The Cost-Per-Click (CPC) also really depends on the industry and the keyword intent. Some industries end up being significantly more expensive than others.
For example: Search keywords for mortgage-related services cost more than the ones for cleaning services. Why? Because the mortgage companies are ready to pay more for each lead than the house cleaning companies, since their average closing tickets (cleaning jobs) are much smaller than those of a mortgage company.
CPC by Location
The location where the Ads are running also plays a significant role in the Cost-Per-Click (CPC), which varies significantly for every location.
For example: Now we have the same industry, let’s say roofing, but two different cities – one being Toronto, and the other being Thunder Bay (Northern Ontario). Toronto has a population of a few million people, while Thunder Bay is just a bit over a hundred thousand. The fact that fewer people promote roofing services in Thunder Bay than in Toronto means the smaller demand will result in a lower Cost-Per-Click (CPC). That is why big cities usually have a higher cost per click (CPC) than rural towns.
CPC by Seasonality
During peak seasons, like holidays or industry-specific periods keyword competition intensifies, leading to higher costs. Similarly, ads shown during peak hours, when your target audience is most engaged, may also become more expensive.
For example: Tax season for accountants
CPC by Intent
The intent behind the keywords also makes a significant difference. There are 4 types of keywords that all have different intentions:
- Informational: For users who want to learn
For example: When someone is searching “How to get roofing done”, they will get the results on Google about all sorts of things about roofing: different roofing methods, blogs and forums about roofing, YouTube videos.
- Navigational: For users who want to open a specific page
For example: When someone is searching “ABC roofing reviews”, the user is trying to navigate themselves through Google to learn more about the reviews of a certain roofing company.
- Commercial: For users who are interested in a product or service
For example: When someone is searching “Roofing company in Toronto”, the user is trying to find a company that will do their roofing, and their intent changes here from “just browsing” to actually looking for a roofing company.
- Transactional: for users who are ready to buy
For example: When someone is searching “Emergency roof repair same day”, the person searching is ready to pay to fix their roof the same day.
As you might have guessed, the commercial and transactional keywords are more expensive than informational and navigational, since those users are more likely to convert into a lead or a potential client the same day.
PPC Ad Types
Various Ad Types exist and are widely used daily by thousands of businesses. You might be wondering what is the best ad to run for your business, event or even your book… Here’s a breakdown of the main types of PPC ads, their key features, and ideal use cases and exmaples:
Search Ads
The Search Ads are probably the most notorious for everyone at least seeing them once when ANYTHING is searched up on Google or other search engines.
Description: Text-based ads appear on search engine results pages (SERPs) when users search for specific keywords. Labelled with “Ad” or “Sponsored”
Best For: Intent-driven traffic, conversions, and lead generation
Platforms: Google Ads, Microsoft Advertising (Bing)
Key Features: Keyword bidding, ad extensions (e.g., site links, callouts), and negative keywords to exclude irrelevant searches
Display Ads
Display ads can be a good investment for a business. They provide broad and targeted visibility online, making it easier for people to recognize and remember your brand.
Description: Visual banner/image ads on websites, apps, or videos within ad networks (Google Display Network). Lower click-through rates (CTR) and user intent but excellent for brand awareness
Best For: Brand exposure, retargeting, and top-of-funnel marketing
Platforms: Google Display Network, Meta (Facebook / Instagram)
Key Features: Demographic, interest, and contextual targeting; responsive formats auto-adjust for devices
Shopping Ads
Shopping ads or product listing ads (PLAs) are paid ads that let retailers and online brands display their products right in the search results.
Description: Product listings showing images, prices, and store names directly on SERPs. Ideal for e-commerce
Best For: Driving sales for physical products, users comparison-shopping
Platforms: Google Shopping Ads
Key Features: Uses product feeds (not keywords), higher conversion rates due to the visual aspect
Video Ads
Video ads are often more engaging and memorable than other forms of advertising, and can help brands connect with audiences in a more emotional and impactful way
Description: Ads on platforms like YouTube (pre-roll, mid-roll, or bumper ads). Can be skippable or non-skippable
Best For: YouTube (Google Ads)
Platforms: YouTube (Google Ads)
Key Features: Charged per view (CPV) or impression (CPM), targets users based on interests/viewing habits
Social Media Ads
Social Media ads are a new wave that really took off in the past 5-7 years. Since everyone is glued to their phones ALL the time, scrolling and scrolling through their social’s FYP, showing Ads on their timeline is a very effective way to make the users convert.
Description: Highly visual ads – images, videos (reels, shorts…) , stories
Best For: Audience engagement, lead generation, and precise demographic targeting
Platforms: Meta Ads (Facebook/Instagram), LinkedIn Ads, TikTok Ads, YouTube, Pinterest.
Key Features: Advanced targeting (interests, behaviours, custom audiences), supports retargeting
Remarketing/Retargeting Ads
Remarketing Ads, also known as Retargeting, is a method that gets advertisers to show ads to people who have already visited their website (or showed previous interest in the product). If you’ve visited a site before, you might see their ads while you’re browsing other sites, watching YouTube, or reading the news. This keeps your brand fresh in your mind and encourages you to return, increasing your conversion rate.
Description: Targets users who previously interacted with your website/app but didn’t convert. Shows tailored ads (e.g., abandoned cart items)
Best For: Re-engaging warm leads and boosting conversions
Platforms: Google Ads, Meta Ads (Facebook/Instagram), TikTok Ads
Key Features: Uses information from your GA4 (Google Analytics) / pixels. Dynamic ads display previously viewed products
Local Service Ads
Local Services Ads (LSAs) highlight your business listing to nearby customers searching for your services online, encouraging them to reach out for a quote.
Description: Exclusive to service-based businesses (e.g., plumbers, electricians). Appears in local searches with business details
Best For: Driving local leads and calls
Platforms: Google Local Services
Key Features: Pay-per-lead (not click), Google-guaranteed verification, review displays.
Our PPC Plans
| Features | Lite | Pro | Enterprise |
|---|---|---|---|
| Ad Spend Limit | $100 – $5,000/month ad spend (paid to networks) | $5,000 – $30,000/month ad spend (paid to networks) | $30,001+/monthly ad spend (paid to networks) |
| Initial Optimization | $1,200 (First Month’s Management including Campaign Audit) |
$2,250 (First Month’s Management, including Campaign Audit, Creative Development) |
$5,800 (First Month’s Management, including Campaign Audit, Creative Development) |
| Progressive monthly management cost: | $850 | $1,200 or 15% of spend, whichever is higher | $4,200 or 12% of ad spend, whichever is greater |
Why such pricing:
Why Initial Optimization Costs Vary: The initial optimization fee covers the setup and launch of your PPC campaigns.
- Includes:
- Account audit and strategy development
- Keyword research and selection
- Campaign structure planning
- Ad creation and testing setup
- Conversion tracking implementation
- Initial bid strategy setup
Monthly Management: Our monthly management fee structure is designed to align with both the complexity of managing your account and the value we deliver.
- Includes:
- Ongoing optimization and bid management
- Regular performance analysis and reporting
- Continuous A/B testing of ads
- Keyword expansion and refinement
- Competitor monitoring
- Monthly strategy review
Flat Fee or %: We charge a flat fee or % of the total monthly budget. The “whichever is higher” model ensures we can maintain service quality regardless of fluctuations in ad spend while aligning our compensation with your advertising investment.
