Google ads cost is measured by the average cost per click you get for specific keywords, multiplied by the number of clicks you get in a certain time period. Normally, to run a successful Google ads search campaign you would need to invest a minimum of $700-$800. This number will vary per industry and will also depend on how aggressive you want to be with your marketing dollars and how many leads you are ready to receive. The way in which Google establishes a cost per click for specific keywords is based on your competitors and how much they are currently paying to show their ads for those same keywords. For example, if your main competitor is using the keyword “Buy RV in Alabama” and he’s paying $5 per click, you would need to bid at least $5.01 to rank higher than him on Google search.
Ranking above your competitors also takes into account other factors, but how much you bid for certain keywords is the most important one.
Google ads also offer other types of campaigns like display, remarketing, video, shopping, and more. All of them play with different sets of rules on how a cost per click is determined, but in the big picture, you are always competing against all the other companies that are advertising. For display campaigns, for example, the average cost per click is around $0.05 or sometimes even less, but you need hundreds or thousands of clicks to generate conversions. Those campaigns are normally used for branding purposes.