How Google Ads pricing works
Google Ads is an auction. Each time someone searches, Google decides which ads to show and in what order, based on your bid and the quality of your ad and landing page. You pay only when someone clicks. That is why it is called pay-per-click (PPC).
Three numbers decide what you spend:
| Number | What it means | Who controls it |
|---|---|---|
| Cost per click (CPC) | What one click costs | Competition for your keywords, and your ad and landing page quality |
| Daily budget | The most you want to spend on average per day. Google can spend up to twice this on a busy day, but keeps the month within about 30.4 times the daily budget. | You |
| Conversion rate | The share of clicks that become an enquiry | Your landing page and offer, not Google |
Typical cost per click by market
CPCs vary hugely by industry. Here are real averages for a few service keywords, from Keywords Everywhere (Google Keyword Planner data) in October 2026:
| Keyword | India | UK | Australia |
|---|---|---|---|
| google ads for small business | ₹36 | £10.41 | A$10.48 |
| google ads agency | ₹34 | £12.24 | A$10.47 |
| crm for small business | ₹75 | £5.89 | A$8.22 |
| website maintenance cost | ₹19 | £1.65 | A$5.56 |
As a rough guide, local service businesses in India often pay ₹10 to ₹80 a click. In the UK and Australia the same kind of business often pays £1 to £8 or A$2 to A$10. Legal, finance, insurance and some B2B services cost far more.
A simple formula for your monthly budget
Start from the number of enquiries you want, not from a random budget:
Monthly ad spend = (enquiries wanted ÷ conversion rate) × cost per click
For example, a clinic that wants 30 enquiries a month, with a landing page that converts 5% of visitors:
| India | UK | Australia | |
|---|---|---|---|
| Enquiries wanted | 30 | 30 | 30 |
| Clicks needed (30 ÷ 5%) | 600 | 600 | 600 |
| Average CPC | ₹40 | £3 | A$4 |
| Monthly ad spend | ₹24,000 | £1,800 | A$2,400 |
| Cost per enquiry | ₹800 | £60 | A$80 |
Now look at the same maths with a poor landing page that converts only 2%: you need 1,500 clicks for the same 30 enquiries, and the budget more than doubles. This is why we always build the landing page and the ads together.
What is the minimum budget?
Google has no real minimum. But too little budget gives Google too little data to learn from. As a starting point for a single service in one city or region, we suggest:
| Market | Daily budget | Monthly (approx.) |
|---|---|---|
| India | ₹500 to ₹1,500 | ₹15,000 to ₹45,000 |
| UK | £20 to £50 | £600 to £1,500 |
| Australia | A$30 to A$70 | A$900 to A$2,100 |
If your budget is below this, narrow the targeting instead of spreading it thin: fewer keywords, one location, exact and phrase match only.
Agency management fees
Ad spend goes straight to Google from your own card. If you hire someone to run the account, their fee is separate. Typical ranges for small businesses:
| Model | How it works | Good for |
|---|---|---|
| Fixed monthly fee | Same fee each month for agreed work | Small and medium budgets; predictable costs |
| % of ad spend | Usually 10% to 20% of spend | Larger budgets |
| Setup fee + monthly | One-off setup (account, tracking, landing page) then a monthly fee | New accounts that need building properly |
Be wary of anyone who asks you to pay ad spend through them without showing you the account. You should always own the Google Ads account and see exactly what Google charged.
Costs people forget
| Cost | Why it matters |
|---|---|
| Landing page | Sending ads to your homepage usually lowers the conversion rate, so every enquiry costs more. |
| Conversion tracking | Without it, Google cannot optimise for enquiries. See our conversion tracking setup guide. |
| Tax | In India, Google charges 18% GST on ad spend. In the UK and Australia, VAT or GST may apply depending on your business registration. |
| Your time | Answering leads fast. A lead called back within five minutes is far more likely to convert than one called the next day. |
How to stop wasting money
| Fix | What to do | How often |
|---|---|---|
| Match types | Use exact and phrase match, not broad match, until you have conversion data | At setup |
| Negative keywords | Exclude words like "free", "jobs", "course" and searches you cannot serve | At setup, then weekly |
| Search terms report | Check what people actually searched and exclude anything irrelevant | Weekly |
| Locations and hours | Target only the areas and times you can actually serve | At setup |
| Landing pages | Send each ad group to a page that matches the search | At setup |
| Conversion tracking | Track forms, calls and WhatsApp clicks so you see which keywords bring enquiries | Check monthly |