How much does Google advertising cost in Australia?

Google advertising is an effective way to reach consumers in Australia. However, it’s expensive to get started with. Many marketers and business owners alike may bulk at the initial start-up costs of using Google Ads,  but it can be an excellent way to reach new customers and grow your business when used correctly.

This guide will explore the cost of Google advertising in Australia in-depth, assessing the potential return on investment and if it is worth investing in.

As a bonus, you’ll find a Google Ads ROI calculator at the bottom of the page. 

Let’s explore!

How does Google advertising work?

Google advertising is a way to promote your business on Google Search. It is a form of paid advertising, where you pay Google to show your adverts to people who are searching for what you offer.

When someone searches for a keyword or phrase related to your business, your advert may appear as a sponsored link at the top of the search engine page. 

Google Ads examples

Google advertising can often be expensive to get started with, and you’re probably reading this article because you’re trying to weigh up if the ROI on Google ads is worth it or not. Like with many forms of marketing, you get what you put into it. 

Why should you use Google advertising?

 There are several reasons to use Google advertising for your business. 

Google is the most popular search engine in Australia, with 96% of the market share. This means that when Australians are searching for what you offer online, your advert has a good chance of appearing in front of them. 

Google advertising is also very targeted. You can target your ads to people based on their location, what they’ve searched for in the past, and even what type of device they’re using. This ensures that your adverts are seen by people who are most likely to be interested in what you’re selling. 

How much does Google advertising cost in Australia?

Google Ads Keyword Planner Example

Google advertising can be a great way to get your business in front of potential customers. But how much does it cost? 

In Australia, the average cost-per-click (CPC) as of 2021 for Google Ads is $2.22USD. However, this can vary depending on your industry and the keywords you’re targeting.

For example, if you’re in the insurance industry, you can expect to pay around $8.61 per click. If you’re in the real estate industry, you can expect to pay approximately $2.27 per click. 

To get an idea of how much Google advertising will cost for your business, I suggest using the Google AdWords Keyword Planner tool. This tool will help you to estimate the CPC for your keywords and give you an idea of how much you can expect to pay per click. 

A Google advertising campaign can cost anywhere from a few hundred dollars to tens of thousands of dollars per month. It’s estimated that in Australia, small businesses spend anywhere from $5,000-$15,000 a month in Google advertising expenditure. 

What is the ROI on Google Advertising in Australia: 

Google Ads Cost Australia

Like with any form of marketing, the ROI on Google advertising will depend on several factors, including the industry you’re in, the keywords you’re targeting, and your ad copy. 

However, if done correctly, Google advertising can be a great way to generate leads and sales for your business. 

Studies found that the ROI on Google advertising offers an average ROI of 100%. This means that for every $1 spent on Google Ads, businesses saw an average return of $2.

However, your earning potential varies depending on many factors. Some businesses can earn up to $8 for every $1 spent, and some industries command even higher ROI. 

Why does Google advertising have such a high ROI? 

There are many reasons why Google advertising can offer such a high ROI. 

Firstly, as we mentioned earlier, Google is the most popular search engine in Australia, with 96% of the market share.

Over 63,000 searches are processed on Google every second, and Google holds over 70% of the search engine market globally. Considering that 46% of clicks go to the top 3 paid search results,  it’s easy to see how Google advertising can bring results. 

Because Google dominates the market share,  it has a lot of data on users’ search habits. This allows Google to show your advert to people who are more likely to be interested in what you’re selling, which increases the chances of them clicking on your ad and converting into a customer. 

Google offers some of the most sophisticated targeting options of any advertising platform, allowing you to target your ads to people based on their location and what they’ve searched for in the past.

Google’s advanced advertising targeting is very effective. In fact, 35% of customers buy a product 5 days after seeing it on Google! The average conversion rate for a Google Ad is also over 3.75%,  which is much higher than the average conversion rate for other forms of digital marketing. 

Is it worth it?

We’ve taken a deep dive into how much Google advertising costs in Australia, and we’ve also looked at the ROI and why it’s effective. Now, let’s look at some numbers to see if advertising your product or services on Google is worth it. 

It’s recommended that you spend at least $10-$50 per day on Google advertising. For the numbers below, we will use the average ROI of 100%. 

If you spend $10 per day on Google Ads, you can expect to make an ROI of $20-$80 per day. Extend that budget to $30 per day, and you may make anywhere from $60-$240 per day. 

With a budget of $10 per day, you can make up to $560 a week ROI on your Google advertising expenditure, assuming that your ROI is 8:1. Businesses that have some leg-room with their budget and can afford to allocate $50 per day to Google Ads can see returns of up to $2,800 per week. 

From these figures alone, you can see how valuable investing in Google advertising is. In the world of marketing, you have to spend money to make money, and Google advertising is a great way to generate leads sales and grow your business. 

Do you want to know exactly how much return you can expect from your Google Ads? I’ve put together a useful Google Ads ROI calculator. Feel free to make a copy, plug in your numbers and get planning.

<< Google Ads ROI Calculator >>

Google Ads ROI calculator

Get started:

Ready to get started with digital advertising? I’m a digital marketing consultant specialising in Google Ads management.

Unlike an agency, my clients get the experience of working with me directly, without any account managers or other staff involved. This means you get more bang for your buck and results that are tailored to your specific needs. 

If you’re looking to work with a specialised digital marketing consultant with an in-depth understanding of the digital marketing space and specialist knowledge in paid advertising, let’s chat!

Louisa Ingelheim

Louisa Ingelheim

Louisa is a data-driven digital marketing consultant with over 7+ years of experience in SEO, SEM, paid social advertising and website analytics.

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