Google Ads is a powerful digital marketing tool that has proven to be highly effective in generating leads, driving traffic, and boosting sales. However, the amount businesses spend on Google Ads campaigns can vary significantly, ranging from several hundred dollars to SGD$10,000 or more per month. Google Ads prices also fluctuate widely depending on the keywords and industries involved. Understanding the factors that influence campaign costs can help you allocate your budget effectively and achieve your desired results.
In this guide, we’ll explore the main factors affecting Google Ads pricing, provide a glimpse of cost-per-click (CPC) prices across various industries in Singapore, and explore whether Google Ads is worth the investment.
What Factors Influence Google Ads Pricing?
The cost of Google Ads depends on several variables. Here are the key factors to consider:
1. Industry
The competitiveness of your industry directly influences the cost of running Google Ads. Certain sectors, such as IT services, healthcare, and legal services, are highly competitive, driving up the CPCs for the keywords in their industry. Higher CPCs will then require a higher Google Ads budget to be able to generate results. On the other hand, niche industries with less competition may enjoy lower CPCs, making Google Ads a more affordable option.
The following are examples of CPCs estimates of select keywords from various industries.
Note: The following figures are simply estimates. The actual value would vary by factors such as time and by ad position bid.
Automotive
“Car leasing singapore”: SGD $1.73
“Cars for sale”: SGD $1.72
“Sell car”: SGD $8.92
B2B
“Accounting services”: $4.31
“Staffing agency”: $2.62
“It services company”: $5.69
E-Commerce
“Vacuum cleaner”: SGD $0.50
“Furniture singapore”: SGD $0.76
“Aircon singapore”: SGD $4.12
Education
“Childcare singapore” : SGD $4.72
“Preschool near me” : SGD $3.01
“Physics tutor”: SGD $5.50
Food & Beverage
“Singapore bar” : SGD $0.35
“Brunch restaurants” : SGD $0.32
“Buffet catering” : SGD $0.92
Healthcare & Medical
“Tcm clinic”: $1.78
“Eczema treatments”: SGD$1.97
“Therapy singapore”: SGD $2.15
“Dentist near me” : SGD $2.07
Interior Design
“Interior designer near me” : SGD $3.90
“Office interior design”: SGD $5.73
Home Services
“Aircon service company”: SGD$2.35
“Plumbing services near me” : SGD $1.97
Law
“Divorce lawyers”: SGD$5.49
“Malpractice lawyer”: SGD$4.66
Salon Services
“Lash extensions near me”: SGD $1.08
“Facials near me” SGD $3.27
Travel & Hospitality
“Best hotels in singapore”: SGD $0.39
“Batam ferry ticket”: SGD $0.16
Want to know the real-time CPC estimates for your own industry keywords? Give the Google Keyword Planner a try.
2. Google Ads Campaign Type
Google Ads cost-per-click (CPC) prices, which are the cost an advertiser is charged by Google for each click on their ad, differ greatly between campaign types, with the most notable difference occuring between Search and Display campaigns.
Search Ads:
These ads appear at the top of Google’s search results pages when users search for specific keywords. They are highly effective for capturing leads because they target users with strong purchase intent. However, they usually have higher CPCs as advertisers tend to target high-intent keywords because they bring better results.
Display Ads:
Display ads appear as banners or videos on websites, apps, and YouTube. Their CPCs are much lower than search ads and are great for increasing brand awareness. However, they are less effective in driving immediate conversions (e.g. sales, enquiries) as they target users who may not be actively searching for your products or services. Thus, despite much lower CPCs, more clicks are usually required to result in conversions compared to Search ads.
Based on our experience in managing Google Ads across diverse industries, here are the common CPC ranges OOm has observed across campaign types:
Search Ads: SGD $2 – $20
Display Ads: SGD $0.05 – $0.80
Performance Max (PMax): SGD $0.20 – $2
Shopping Ads: SGD $0.20 – $1
3. Keywords Selection
Keywords are at the core of Google Ads, and their selection plays a critical role in determining costs.
High-Intent Keywords:
Keywords with strong buying intent, such as “buy smartphone Singapore,” usually have higher CPCs because they are in high demand, with more advertisers vying for such keywords.
Informational Keywords:
Keywords like “how to choose a smartphone” are typically less expensive but may not drive immediate conversions.
In general, the more likely a particular keyword to lead to conversion (sales & leads), the more expensive the CPCs would be. Thus, conversion-based campaigns would usually require a greater budget than awareness campaigns.
4. Current Market Trends
Google Ads pricing operates on a bidding mechanism, where the cost-per-click (CPC) rises when more advertisers compete for the same keywords or when search demand is lower. In industries with more businesses also advertising on Google Ads, CPCs tend to be more expensive due to increased bidding activity. Additionally, during peak periods such as festive sales or seasonal promotions, heightened competition often drives CPCs even higher.
5. Effectiveness of Campaign Setup & Management
The success of a Google Ads campaign largely depends on how well it is set up and managed. A campaign designed with a proper strategy and maintained through effective management will typically yield a significantly better return on investment (ROI) than poorly managed campaigns with minimal results.
Here are some key areas that require careful attention to maximise campaign performance:
Campaign Structure and Strategy:
Selecting the most suitable campaign types and keyword match types to bid strategy, as well as structuring them to align with the industry and specific goals is critical for achieving success.
Ad Copy & Collaterals:
Crafting compelling ad copy, designing eye-catching visuals (ad banners or videos), and effective landing pages are critical for a successful campaign. They can greatly influence ad click-through rates (CTR) and conversions.
Targeting Selection:
Choosing the right keywords, ad placements to audience targeting is also essential, as this determines who sees your ads and can thus make or break a campaign’s results.
Regular Performance Monitoring and Optimisation:
Even after the campaign is live, continuous testing and optimisation are needed to maximise its performance. This involves continuously tracking important metrics, such as click-through rates (CTR), conversion rates, while optimising keywords, targeting options, and bid strategies to improve ad performance.
On the other hand, poor campaign management can lead to inefficiencies, such as wasted budget, missed opportunities, and low ROI. Thus, investing in skilled account setup and ongoing management ensures your campaigns deliver the best possible results.
If you would like to work with a Google Ads agency to maximise the effectiveness of your campaign, you’ll need to account for agency management fees in your budget. Agencies typically charge a fixed monthly management fee that increases based on the advertising budget. While this adds to your overall costs, an experienced agency can optimise your campaigns to maximise performance, improve ROI, and save you valuable time from managing campaigns of your own. For many businesses, the benefits of professional management usually outweigh the additional expense.
If you need expert help in running a Google Ads campaign, OOm is a Premier Google Partner with a long-standing expertise in Google Ads and digital advertising. Learn more about our Google Ads management service.
Learn More: OOm Google Ads Management
What is a Recommended Google Ads Budget?
The answer is—it depends. At OOm, businesses we work with typically allocate between SGD$1,000 and $10,000+ per month for their Google Ads campaigns. While smaller budgets are possible (Google Ads does not enforce a minimum spend requirement), achieving meaningful results can be challenging with very low ad spend.
When setting up a campaign, the platform requires advertisers to establish a daily budget. Although daily spending may fluctuate—sometimes exceeding or falling below the set amount—Google Ads ensures your total monthly expenditure will not exceed your designated monthly budget (Daily budget x 30.4).
A ‘good’ Google Ads budget for each business depends on various factors, including the business’ available advertising budget, the level of industry competition, and the campaign goals. In general, industries with higher competition and more expensive keywords require larger budgets, especially if the advertising goals are ambitious.
How OOm Helps You Set the Right Google Ads Budget
At OOm, our expert team follows a structured approach to help clients determine an effective campaign budget for PPC services in Singapore:
- Review the Client’s Fixed Advertising Budget: We assess the client’s available resources to establish a realistic baseline.
- Research Industry CPCs: We conduct thorough research on the cost-per-click (CPC) for target keywords specific to the client’s industry.
- Estimate Costs for Results: We calculate the number of clicks and the potential costs needed to achieve the desired outcomes.
- Recommend an Optimal Budget: Based on the above insights, we suggest a budget tailored to the client’s business goals and market conditions.
For small businesses or those new to Google Ads, it’s possible to start with a modest budget. This allows for testing different strategies, measuring performance, and scaling up the campaign as positive results are achieved.
Would you like tailored advice on a realistic Google Ads budget for your industry and business goals? Contact us today to schedule a complimentary consultation with our expert team.
Conclusion: Are Google Ads Worth It?
The big question is whether Google Ads is worth the investment. For most businesses, the answer is a resounding yes—if the campaigns are managed effectively. While costs can be high in competitive industries, the potential returns often outweigh the investment when campaigns are optimised for performance.
Whether you’re new to Google Ads or looking to improve your existing campaigns, partnering with a Google Ads agency can help you navigate the complexities of this platform and achieve your goals.
At OOm, we have a team of experts to take care of your advertising campaigns to bring you peak returns. As one of the top performance marketing agencies in Singapore, OOm has won 30+ awards in performance and search marketing. Due to our track records, we also have been selected by Google as their Premier Partner, which is reserved for the top 3% agency partners in Singapore, as well as Facebook as their Meta Business Partner.
If you are an SME in Singapore, you may qualify for up to 50% subsidy under the PSG Digital Marketing Grant.
Here are some results we have delivered to our clients:
- Million Parcel (eCommerce Packaging Supplier): Achieved a 231% revenue increase through a strategic digital advertising campaign that integrated Google Ads and social media advertising.
- Ji Mei Floral Creation (Florist and Floral Supplier): Delivered an impressive 7.95 Return on Ad Spend (ROAS) by combining the power of Google Ads with targeted social media advertising.
- Stamford Catering: After engaging OOm, Stamford Catering saw a 92% increase in their Google Ads conversions and an 86% boost in sales revenue from Google Ads alone—dramatically outperforming their previous results when managing Google Ads in-house.
These are just a few examples of how we’ve helped businesses achieve their goals. Let us help you achieve yours.
Ready to grow your business with Google Ads? Contact our team of experts today for your complimentary consultation!
