How Much Does PPC Advertising Cost?

Short answer: It depends.
Long answer: Let’s break it down.

Pay-Per-Click (PPC) advertising, especially through platforms like Google Ads, can be one of the most effective ways to drive traffic, leads, and sales, fast. But when it comes to cost, the truth is that PPC isn’t one-size-fits-all.

In this blog, we’ll unpack the key factors that influence PPC pricing, explain how budgets are managed, and help you understand what you’re actually paying for.

What Is PPC and How Does It Work?

Before we dive into the dollars, let’s quickly recap how PPC works.

With PPC, you only pay when someone clicks your ad. These ads typically appear on Google search results, YouTube, or websites in the Display Network. You set a daily budget, choose your target keywords, and Google enters your ad into an auction every time someone searches for one of your chosen keywords.

The winner of that auction (you hope!) gets their ad shown. But here’s the kicker: you don’t necessarily have to be the highest bidder. Google also considers your ad quality and landing page experience, which means smart strategy can save you money.

What Factors Influence PPC Costs?

The cost per click (CPC) can range from a few cents to over $50, depending on your industry, competition, and the campaign setup.

Here’s what influences the cost:

1. Industry and Keyword Competition – Highly competitive industries like legal, finance, insurance, and SaaS tend to have higher CPCs. For example: “Plumber Auckland” may cost $3–$8 per click and “Divorce lawyer NZ” could hit $20+ per click.
2. Ad Quality (Quality Score) – Google rewards well-crafted ads with lower CPCs. A high Quality Score (based on ad relevance, CTR, and landing page experience) means you’ll pay less to rank higher.
3. Targeting Options – The narrower your targeting (location, device, demographics), the more efficient your spend, but in competitive markets, it can also increase CPC.
4. Ad Type – Search ads tend to cost more than display or remarketing ads. Video ads (like on YouTube) are often cheaper in CPC, but have different engagement metrics.
5. Bidding Strategy – Manual vs. automated bidding, maximising conversions vs. impressions, each strategy affects the cost structure differently.

What Does a PPC Budget Look Like?

We usually recommend a minimum monthly budget of NZD $1,000–$3,000 for small to medium-sized businesses looking for meaningful results. Here’s how your budget might break down:

Pro tip: The better your ads and landing pages, the less you’ll pay per click, and the more leads you’ll get.

So, Is PPC Worth It?

Absolutely, if done right.

PPC gives you instant visibility, measurable ROI, and powerful targeting. But it can also burn through budget fast if mismanaged.

At Stellar Digital Media, we don’t believe in ‘set and forget’. We build data-driven PPC campaigns that are actively monitored, optimised, and designed to deliver real returns.

So, Ready to Get Started?

If you’re wondering whether PPC is right for your business, or how much you should spend, we can help. Book a free strategy session and let’s talk about results, not just clicks.

Related;

• Check out our blog on tracking ROI and cost per acquisition
• Explore our digital marketing strategy services
• Not sure if you should hire an agency or go DIY? We break it down.

TL;DR: PPC Cost Summary.

• PPC costs vary by industry, keywords, ad quality, and targeting.
• Small to mid-sized businesses typically spend $1,000 – $3,000/month.
• You’re paying for clicks, but strategic ads and landing pages reduce cost per acquisition.
• It’s not just about spend, it’s about ROI.