How Much Does Google Ads Cost in Canada in 2024?

Welcome to 2024. Advertising isn’t about catchy jingles or flashy logos anymore. It’s about money, metrics, and, most importantly, getting results. Today, we’re going straight to the heart of digital marketing: Google Ads. If you’re running a business or driving marketing in Canada, get ready. We’re breaking down the costs so you know exactly what it takes to level up and grow your business.

Why Google Ads?

Let’s clear something up right now: Google Ads is where the real game is played. If you’re not running ads on Google, you’re practically invisible to a massive audience. Here’s the deal: every single second, 2.3 million searches are made on Google. That’s 2.3 million chances to put your brand right in front of the folks who need what you’re selling. And guess what? Your competition is already on it.

What Drives Your Cost On Google Ads?

Google Ads runs on a pay-per-click (PPC) marketplace. You only shell out cash when someone actually clicks on your ad. Think about it: you’re not paying for every single time your ad pops up on a search result—just for the clicks that matter.

So, what’s the cost per click (CPC)? That’s where it gets fun. A CPC is when a user sees your ad online and decides to click through to learn more. If you have a Pest Removal Ad Guaranteeing Wasp Removal a potential customer will be more likely to click through into your ad and that is when you get charged. But not every CPC is the same, but how does this get dictated? Well let’s break that down together below! ⬇️

Cost Per Click (CPC) vary significantly based on several factors. We outlined what we believe to be the top 5 factors below.

1. Industry: Different industries have different levels of competition. For example, legal services and insurance tend to have higher CPCs compared to retail, hospitality and personal care. This is because competitors know that the potential for higher profit is in those industries meaning they are willing to compete for those keywords and pay more for them.
2. Location: Advertising in major cities like Toronto or Vancouver will generally cost more than in smaller towns due to higher competition. When you have more competitors who are also trying to compete for the same business it increases the overall CPC for your keywords.
3. Keywords: Popular keywords with high search volumes are more expensive. The more competitive a keyword, the higher the cost. One great way to look at this is Personal Injury Lawyer is a very popular keyword so its cost is estimate at $16.68 – $25 per click, where Lawyer Barrie is on $3.68 per click. Choosing the right keywords can be the difference of a successful or broken ad account.
4. Quality Score: Google rewards ads that are relevant to users. The better your ad’s relevance, the lower your CPC. If someone is looking for a Pest Control company who services Lethbridge to remove wasps you will want to make sure your website page talks about wasp removal on that page.
5. Bidding Strategy: How much you’re willing to pay for a click affects your ad’s placement and cost. There are tons of bidding strategies out from Max Clicks, Max Conversions and Target ROAS. By choosing the correct bidding strategy you will signal to Google that you are not willing to pay over a certain percentage for your keywords

Average Google Ad Costs by Industry in Canada

So, what’s the average CPC in Canada? Here’s a quick snapshot:

Industry	Average Cost Per Click
Animals & Pets	$0.60 – 4.10
Apparel / Fashion & Jewelry	$0.30 – 3.91
Attorneys & Legal Services	$3.23 – 17.43
Automotive Sales	$0.45 – $6.75
Automotive Repair /Parts	$1.09 – $5.69
Personal Care	$0.67 – $4.94
Business Services (Accountant, Marketing, Consultant)	$2.94 – $12.11
Employment	$1.15 – $11.72
Dental Services	$2.30 – $14.90
Education	$3.68 – $5.70
Finance	$2.90 – $4.97
Insurance	$5.44 – $10.54
Health & Fitness	$0.84 – $5.82
Home Improvement	$2.35 – $10.18
Industrial & Commercial	$2.42 – $7.51
Physicians & Surgeons	$0.96 – $9.64
Real Estate	$0.68 – $4.10
Restaurants	$0.51 – $4.98
Shopping	$0.45 – $3.96
Sports & Recreation	$0.27 – $1.30
Travel	$1.10 – $4.93

These figures are estimates, but they give you an idea of what to expect. It’s crucial to remember that these are just averages. Depending on your campaign’s specifics, your CPC could be higher or lower. You can also see the large variation in CPC within industries which is why choosing the keywords most important to you and cutting out keywords that don’t produce a high ROAS is absolutely crucial!

Planning Your Budget

So now you know what the CPC is for your industry, but you need to consider developing budgets for your ad account. When calculating your total Google Ads cost you should be considering these factors:

1. Budget: How much are you willing to spend per day or month? Setting a clear budget helps control costs. You never want to set a budget that is out of your companies comfort zone when starting out.
2. Bidding Strategy: This determines how your budget will be optimized to spend. At the beginning we recommend going with a strategy that maximizes the total people seeing the ad for the most data then changing the bid strategy to match the marketing objective such as Target ROAS.
3. Management Fees: If you’re using an agency or a PPC specialist, their fees should be part of your budget. Typically this is either hourly or monthly fees. We will go into the pros and cons of both below in the article.
4. Conversion Rate: How many of those clicks are turning into sales? A high conversion rate means you’re getting more bang for your buck. Knowing your conversion rate roughly before going into paid ads will help ensure you don’t end up wasting budget.

Tips to Maximize Your ROI

Now that you know the costs, let’s talk strategy. How do you make sure every dollar spent on Google Ads counts? Here are some ways to optimize the ads further beyond just changing bidding strategies.

1. Keyword Research: Don’t just target the most popular keywords. Find niche keywords with lower competition but high intent. These keywords can typically bring anywhere from a 50% – 200% higher return on ad spend for your Google Ads.
2. Optimize Your Landing Pages: Ensure that your landing pages are showing relevant content, fast-loading, and optimized for conversions. Not only will optimized landing pages lower your CPC’s, if you can increase your conversion rate even 1% that can be the difference in thousands of dollars in new revenue!!
3. Use Negative Keywords: Filter out irrelevant traffic to ensure you’re not wasting clicks on users who aren’t interested in your product or service. Our agency starts out our ad accounts with extensive negative keyword lists that we know don’t produce positive returns so that we start out the gate with a strong start.
4. A/B Testing: Test different ad copies, images, and landing pages to find what works best. A great rule of thumb is only test one thing at a time to have measurable results, and always be trying to outcompete your best performing ad.
5. Monitor and Adjust: Keep an eye on your campaign’s performance and be ready to make changes as needed. You never want to just set and forget campaign’s because even one month versus another may result in massive changes to the platform or competitors and positive campaigns may need to be reworked to continue bringing strong results.

Choosing To Work With Agency

You know your products, your services, and your customers. What you might not know is how to maximize every dollar you spend on advertising. That’s why working with professionals who have experience optimizing google ad accounts is a great way to skip heartache from wasting thousands of dollars and spending 25+ hours trying to learn how to build an effective ad account for your business.

Why Choose an Agency?

1. Scalability: As your business grows, your advertising needs will change. An agency can scale your campaigns up or down as needed.
2. Expertise and Experience: Agencies live and breathe digital marketing. They have the knowledge and experience to create campaigns that perform.
3. Time-Saving: Let’s face it – managing a Google Ads campaign can be a full-time job. Do you have that kind of time? Probably not. Hiring an agency frees up your time to focus on what you do best.
4. Access to Tools and Technology: Agencies have access to the latest tools and technology, ensuring your campaigns are optimized for success.

Hourly vs. Monthly Rates: Which One is Right for You?

When it comes to pricing, agencies typically offer two types of rates: hourly and monthly. Each has its pros and cons. Let’s break it down.

Hourly Rates

You pay the agency for the actual time spent on your campaign. This could include strategy, campaign setup, optimization, and reporting. According to Clutch, hourly rates for PPC management in Canada typically range from CAD $100 to CAD $250 per hour, depending on the agency’s experience and expertise. This includes hours working on the optimization and in calls. On a low end you are looking at 2-3 hours and on a high end 7-9 hours per month.

Pros:

• Flexibility: You only pay for the work done. If you have a limited budget or a one-time campaign, this can be a cost-effective option.
• Transparency: You know exactly what you’re paying for, down to the last minute.

Cons:

• Unpredictable Costs: The more work your campaign requires, the higher your costs could be.
• Potential for Higher Costs: If your campaign needs a lot of attention, the hours can add up quickly.

Monthly Rates

You pay a fixed fee every month, regardless of the number of hours spent on your campaign. This fee usually includes a set number of hours or tasks. The main benefit of this approach is you can set out specific targets such as a 400% ROAS that is aligned with the agency and you know the time spent on your account is built towards getting you those results.

According to databox, monthly rates for Google Ads management in Canada can range from CAD $1,000 to CAD $5,000 or more, depending on the agency and the scope of the campaign. At SEU we have a one time optimization fee or a monthly retainer starting at under $850/month.

Pros:

• Predictable Costs: You know exactly what you’ll pay each month, which makes budgeting easier.
• Incentive for Efficiency: Since the fee is fixed, agencies are incentivized to optimize your campaigns effectively and efficiently.

Cons:

• Potential for Less Flexibility: If your campaign requires less work in a given month, you still pay the same fee.
• Risk of Overpayment: If your campaign doesn’t need much attention, you might end up paying more than you should. This unfortunately can happen with agencies that don’t put the clients experience at the very top of their priorities.

Which Option is Best for You?

The choice between hourly and monthly rates depends on your specific needs and budget. If you’re looking for flexibility and want to pay only for the work done, hourly rates might be the way to go. However, if you prefer predictability and a consistent monthly budget, and a dedicated expert who knows your account inside and out then monthly is your best bet.

Remember, the goal is to maximize your return on investment. Whether you choose hourly or monthly rates, the key is to work with an agency that understands your business and can deliver results.

Our Final Takeaway

Google Ads isn’t a one-size-fits-all solution. There are tons of campaigns and settings to choose from base on your goals. The strength in Google is that these options are all available to you but it can make it seem like trying to find the right ad account structure for you can be daunting (don’t worry it is definitely doable!)

The costs vary based on multiple factors, and what works for one business might not work for another. The key is to understand your industry, set a realistic budget, and continuously optimize your campaigns. Remember, the goal isn’t just to spend money but to invest in growing your business, and that you should always do better than you did last year!

Ready to take your advertising game to the next level? At SEU, we’re here to help you navigate the digital landscape and achieve results that exceed your expectations. That’s why we offer a FREE consultation with no obligations because we truly want to see all our clients succeed plain and simple!

Connect with us today for your FREE Consultation!