What Does It Really Cost to Run Google Ads for a Small Business?
By KATIE THOMPSON
Senior Impact Specialist, Larison Media
If you're a small business owner exploring online marketing, you've likely asked yourself: “What does it actually cost to run Google Ads?”
And like most things in business, the answer isn’t black and white - it depends on a few key factors. Some say you can start with just a few hundred bucks. Others talk about thousands in monthly spend. So which is it?
In this post, we’ll walk through the real-world costs of running Google Ads, from what you pay Google to what it takes to manage and support those campaigns so you can plan a budget that makes sense for your business.
Three Types of Google Ads Costs to Know
When we talk about “Google Ads costs,” we’re actually talking about three separate layers:
Ad Spend: What you pay Google directly for clicks
Management Costs: What it takes to run the campaign (your time or someone else’s)
Creative & Setup Costs: Copywriting, landing pages, visuals, and tools that support the campaign
Let’s break down what each of those actually looks like.
1. Ad Spend (What You Pay Google Directly)
Google Ads works on a pay-per-click model (PPC). That means you’re charged each time someone clicks your ad, not when they just see it.
What Affects Your Cost-Per-Click (CPC)?
Your industry: Some markets (like law, finance, or home services) are more competitive, which drives prices up.
Your location: Big cities tend to cost more than smaller towns.
Your keywords: General search terms cost more than niche ones.
Your ad quality: Google rewards well-written, relevant ads with lower CPCs.
Seasonality: Ad space gets more expensive during busy periods, like holidays or peak industry seasons.
Typical CPC Ranges:
Local service businesses: $2–$6 per click in smaller markets
Competitive metro areas: $8–$15+ per click
High-value industries: $20–$50+ per click
Key point: You control your daily/monthly budget, but actual results depend on how far your dollars go in your market.
2. Management Costs (DIY vs. Professional Help)
Once your ad is running, it needs regular maintenance; adjusting bids, testing copy, tracking conversions, and analyzing results.
Option A: Do It Yourself
You won’t pay a management fee, but your time is the cost. Most business owners spend 5–10 hours per week learning and managing campaigns. And there’s usually a learning curve with some trial and error.
Option B: Hire a Pro
Working with a freelancer or agency usually adds $500–$2,000/month in management fees, depending on how much support you need.
What you’re paying for:
Expertise in running campaigns efficiently
Better use of your ad spend
Clear reporting
Optimization that improves performance over time
Bottom line: DIY is cheaper upfront. Hiring help can boost results and free up your time.
3. Creative & Setup Costs
Good ads need more than just a budget, they need to point to something worth clicking on.
Landing Pages
Dedicated landing pages are designed to turn clicks into leads. They usually convert better than just sending people to your homepage. A strong landing page might cost a few hundred to a few thousand dollars, depending on your setup.
Ad Copy & Visuals
If you're running Display or Video ads (not just Search), you’ll also need graphics or video content. These can be created in-house or outsourced, and may add one-time costs to your campaign setup.
Pro tip: Strong creative doesn’t just make your ads look good, it makes them perform better and cost less per lead.
Other Costs You Might Not Expect
Click fraud: Sometimes bots or competitors click ads. Google can detect and refund some, but not all.
Call tracking or CRM tools: You may need extra tools to see which ads are driving real leads.
Trial and error: Especially with DIY campaigns, expect to pay a “learning tax” early on.
Example Campaign Budgets: What It Might Look Like
Small Market, DIY Campaign
Ad Spend: $1,000/month
Management: $0 (your time)
Creative/Setup: $300 landing page
Estimated monthly total: ~$1,300 to start, ~$1,000/month ongoing
Mid-Sized Market, Agency Managed
Ad Spend: $1,500–$2,500/month
Management: $750–$2,000/month
Creative/Setup: $500–$1,500
Estimated monthly total: ~$2,750–$6,000 to start, ~$2,250–$4,500/month ongoing
Large Market, High-Ticket Service
Ad Spend: $5,000–$10,000/month
Management: $1,500–$5,000/month
Creative/Setup: $2,000+
Estimated monthly total: $8,500–$17,000+
These are general ballparks, not fixed formulas. Every business is different.
How to Decide What You Should Spend
To set a smart budget, ask yourself:
What is a customer worth to you?
If a client brings in $500/month and stays 12 months, that’s $6,000 in value.
How many leads do you need to get one customer?
If your close rate is 1 in 5, you need 5 leads to land a sale.
What’s your cost per lead?
If you spend $1,000 to get 20 leads, your CPL is $50.
Now do the math. If it costs $50 to land a $6,000 customer, your ROI is strong, even if that upfront spend feels high.
Final Thought
So, how much does it cost to run Google Ads for a small business?
There’s no one-size-fits-all answer. But once you understand where the costs come from and how to weigh them against your goals, you can make smarter decisions and avoid overspending.
Yes, Google Ads cost money.But when done right, they can become one of your most consistent and scalable ways to attract new customers.
It’s not just about how much you spend - it’s about how much you get back!
