Rob Timmermann

Everything You Need to Know About PPC Costs in 2025

Tired of conference room discussions, scratching your head over questions like, “Have we done enough to reach buyers?” “How can we improve our conversion rate?” And, the all-too-common concern… “Are we overspending?”

If so, you’re not alone. Welcome to the world of online advertising—where every click comes with a price tag. Here’s what you need to know about the current state of PPC costs in 2025.

Understanding the Basics of PPC Advertising

Pay-per-click (PPC) advertising is a digital marketing strategy that helps drive immediate web traffic, leads, and sales. PPC, in a nutshell, is an auction. That’s why they call the price you’re willing to pay a “bid.” The ad that gets shown first paid the most, and when multiple ads are in play, they’re ranked according to bid amounts. It’s a straightforward system where your investment directly impacts visibility and clicks.

What’s the Average PPC Cost in 2025?

For most businesses, their average PPC cost is around $100 to $10,000 per month. On Ad networks like Google and Meta, you can expect to pay anywhere from $0.11 to $0.50 per click and $0.51 to $1.00 per 1k impressions.

What Factors Influence PPC Costs?

Now, you’re probably thinking, “$100 to $10,000 per month is a pretty big gap, right?” Well, yes. While many businesses fall within this threshold, the truth is these cost projections are just that—an estimate.

In reality, a number of factors can influence what your company spends each month on PPC. These factors include, but are not limited to, industry competition, keyword research, and the quality of your landing pages.

Industry Competition

One of the biggest factors in running an online PPC campaign is the industry in which your company operates. For example, if you’re in a competitive sector (like the legal industry), you’ll probably spend more than companies in less-saturated markets (like senior living services).

Keyword Choices

Another factor which influences PPC costs is the keywords you use. From a search intent perspective, different classifications of keywords contribute to both lower and higher bids. Let’s use the legal industry, as mentioned above, as an example.

  • Informational: “Do I need a Lawyer to Apply for Bankruptcy?”

Informational search keywords tend to be less expensive, as there’s not necessarily an intent to purchase based on what the user typed.

  • Transactional: “Bankruptcy Lawyers Near Me”

These types of search queries do have purchase intent behind them, which often leads to a higher cost-per-click (CPC.)

  • Competitor: “XYZ Bankruptcy Attorneys”

Now, let’s say the customer typed in a competitor’s business name that you also use as a keyword. In this case, “Bankruptcy Attorney.” If you bid higher and have a better quality score than your competition, your ad will show up in the #1 search position. As a helpful tip, best practices suggest going after both long-tail and short-tail keyword variations. This way, you’ll be able to make your ad budget last longer.

Quality Score

Quality Score is Google’s rating on the quality and relevance of both your keywords and online ads. This metric is used to determine PPC costs, and is multiplied by your maximum bid to determine ad rank in the auction process.

Your Quality Score depends on multiple factors, including:

These are the core Quality Score components. And honestly, no one outside of Google knows how much each factor weighs in the algorithm. However, we do know that click-through rate is the most important, followed by the quality of content you direct the user to (which, some could argue, are mutually exclusive).

Improve Your Quality Score, Reduce Your PPC Costs

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How Much Should My Business Spend on PPC?

When it comes to determining the overall cost of your PPC campaign, there’s not really a “right” or “wrong” way to allocate your budget. It all comes down to identifying your goals and the percentage of ad spend it’ll take to drive those results.

As businesses vary in size, industry, and target audience, so do their PPC investment needs. Larger companies often have a broader reach and advertising goals, which is reflected in higher PPC costs. On the other hand, smaller businesses often focus on niche markets or specific demographics, with this hyper-targeted approach represented in a smaller ads budget.

Identify Where PPC Fits Into Your Current Marketing Spend

Most Business-to-Business (B2B) organizations allocate anywhere between 2% to 5% of annual revenue towards marketing. It’s important to note this percentage can change based on your industry dynamics and long-term growth objectives.

Business-to-Consumer (B2C) companies deal with more diverse customer segments. In return, they often allocate a higher proportion—ranging from 5% to 10%—to accommodate multiple marketing channels and engagement strategies.

Here’s a breakdown of baseline PPC costs based on the size of your organization:

  • Small Business: $1,000 to $10,000+ per month
  • Medium-Sized Business: $10,000 to $500,000+ per month
  • Enterprise: $500,000 to $100,000,000+ per month

Just remember: these are averages. True costs fluctuate based on your specific needs, industry competition, and alternative advertising strategies.

Get Your PPC Costs Under Control with Timmermann Group

Managing a fine-tuned PPC campaign is no easy task, but it is by no means impossible. It all starts with a commitment to invest in the required resources. And for many, that starts with PPC management services from Timmermann Group. To us, digital marketing is more than “just” a job. It’s our passion.

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