Contractors Insights: PPC Costs for Contractors: What You Need to Know

If you’re a contractor looking to grow your business, you might be wondering about PPC advertising. Pay-per-click (PPC) advertising is a popular digital marketing strategy that involves paying for ad clicks on search engines and other websites. But how much does it cost, and is it worth the investment? In this article, we’ll break down the costs of PPC advertising for contractors.

Factors that Affect PPC Costs

PPC costs are determined by a number of factors, including your company size, industry, strategy, and ad network. Companies can invest anywhere from $300 to $100 million (or more) per month into PPC management, which includes ad spend, PPC tools, and PPC services. On average, businesses can expect to pay $2.59 per click and $3.12 per 1000 impressions.

Remarketing typically costs between $0.66 and $1.23 per click, while PPC management tools can range from $15 to $800 per month. PPC management services can cost between $350 and $5000 per month or 12-30% of ad spend per month. Finally, ad spend for PPC management can range from $300 to $100+ million per month.

How Company Size Affects PPC Costs

Company size is one of the most influential factors when it comes to PPC costs. Marketing spend typically stems from a business’s size and revenue. For example, 7-10% of an organization’s revenue goes into marketing. Average PPC costs vary by company size:

  • Startup: $300 – $1000+ per month
  • Small business: $1000 – $10,000+ per month
  • Mid-sized business: $10,000 – $500,000+ per month
  • Enterprise: $500,000 – $100,000,000+ per month

However, these are only averages and not recommendations or standards for your organization. The amount your business invests in PPC advertising will depend on your size, industry, and even the ROI of other strategies like SEO.

How to Determine PPC Costs for Your Business

How much you should pay for PPC advertising depends on several factors, including company size, industry, PPC strategy, budget, and goals. Don’t assume that just because the average business invests a certain amount into PPC each month, your company should do the same. Depending on your marketing strategy, you might have plenty of traffic (and sales) coming from other channels like search.

To determine how much you should spend on PPC advertising, evaluate your company’s budget, goals, and industry. This will help you decide what spend makes the most sense for your business.

PPC Pricing on Google Ads

Google Ads is one of the most popular ad networks for PPC marketing. If you’re looking to advertise on the Google Search Network, you can expect PPC costs of $1 to $2 per click. The Google Display Network is typically cheaper, with an average CPC of less than $1.

With Google Ads, you choose the keywords you want to trigger your ads and set a maximum bid for how much you’re willing to pay each time someone clicks your ad. If your bid is among the highest for a keyword or phrase, it will appear at the top of search results with a small tag that shows it’s a paid ad.

One of the best parts of using Google Ads is that you only pay when people click your ads. In other words, you won’t waste money trying to market to people who aren’t interested in your products or services.

Some industries like legal and rehab should expect to pay upwards of $30-$40 per click for PPC, while less competitive industries may only pay a few cents per click.

TLDR: PPC costs depend on various factors unique to your business, such as your company size, industry, strategy, and ad network. On average, businesses can expect to pay $2.59 per click and $3.12 per 1000 impressions outside of PPC management. Startup, small, mid-sized, and enterprise businesses can expect to invest $300-$1000+, $1000-$10,000+, $10,000-$500,000+, and $500,000-$100,000,000+ per month into PPC management, respectively. How much you pay for PPC advertising depends on factors such as your company size, industry, PPC strategy, budget, and goals. Evaluate these factors to determine the appropriate spend for your business. Google Ads is a popular ad network for PPC marketing, with costs of $1-$2 per click on the Google Search Network and less than $1 per click on the Google Display Network.