Google Ads — When It's Worth It, How Much It Costs, and How Not to Burn Your Budget

Imagine an auction that happens in a fraction of a second, every time someone types something into Google. Someone searches "plumber near me." Google instantly checks: who wants to appear for this search, how much they're willing to pay, and how good their ad is. Then it arranges the results — those marked "Sponsored" at the top. The key thing: the highest bidder doesn't win. Google considers two factors: how much you're offering per click AND how good your ad and landing page are. A company with a better ad can pay less for a higher position than a competitor with a poor website. That's why two companies in the same industry can pay $2 and $8 per click — and the one paying less can get better results.

In the basic Google Ads model, you only pay when someone clicks on your ad. The impression itself is free. This sounds great until you understand the implications: if your ad attracts clicks from people who aren't your customers — you're paying for nothing. Example: you run an upscale hair salon, haircuts starting at $80. Your ad shows up for "cheap haircut near me." People click, see the prices, leave. You pay for each of those clicks. That's why targeting precision is more important than the budget itself.

Search Ads — text ads at the top of Google results. Most effective because they reach people who are actively searching for something. A plumber searched by someone with a flooded bathroom has a high chance of conversion. Shopping Ads — product image with price, displayed when someone searches for a specific product. Essential for online stores. The customer sees the price before clicking — so clicks are more valuable. Display Ads (banners) — graphics displayed on websites and in apps. Cheaper clicks, but people aren't actively searching — so conversion is lower. Good for remarketing (reminding people who've already visited your site). YouTube Ads — video before or during videos. Good for building brand awareness, weaker for direct sales. Performance Max — Google decides where to show your ads (search, YouTube, Gmail, maps). Sounds convenient, but works like a "black box" — you don't know exactly where your money is going. Requires a lot of data (minimum 30-50 sales per month) for the algorithm to "learn." For most businesses: start with Search Ads. It's the simplest way to test whether Google Ads makes sense for your business at all.

Local services with urgent needs — plumber, electrician, locksmith, towing service. The customer has a problem NOW, is looking for a solution NOW, is ready to pay NOW. Online stores — especially with products that people compare prices on. Shopping ads show the price immediately, attracting people ready to buy. Professional services with high margins — law firms, medical clinics, accounting firms. One client can be worth thousands of dollars, so even expensive clicks pay off. New products and services — when you want to quickly test if there's demand. SEO takes months, Google Ads gives you an answer in weeks. Seasonal promotions — sales, Black Friday, holidays. You need traffic NOW, not in six months.

Products nobody searches for — you have an innovative product that people don't know about? They won't search for it on Google. First you need to build awareness (e.g., through social media). Very low margins — if you make $5 on a product, and a click costs $1 and you need 10 clicks for one sale, the math doesn't work. No landing page — directing ads to your homepage where the user has to search for the product themselves? Most will leave. You need a dedicated landing page matched to the ad. Budget under $1,500/month — with smaller amounts, you won't collect enough data for optimization. Better to spend that money on SEO or social media. Industries banned by Google — alcohol, tobacco, prescription drugs, gambling (with exceptions), weapons, adult content.

Google Ads delivers results in days or weeks. When you stop paying — you disappear from results. You have full control (turn on/off whenever you want). Cost is constant — you pay for every click. SEO delivers results in 3-12 months. Results persist for months after work ends. Control is limited (you depend on Google's algorithm). Cost decreases — once content is ranked, it works for free. Choose Google Ads when: you need customers fast, you're testing a new product/service, you have a time-limited promotion, your site is new and SEO will take months. Choose SEO when: you're thinking long-term (6-24 months), your industry has very expensive clicks, you want to build brand authority, you have a limited budget and can wait. Best strategy: SEO as foundation + Google Ads to accelerate results at the start. As SEO starts working, you reduce Ads spending.

Google Ads reaches people who are already searching for something. They have a specific need. Facebook Ads reaches people who fit your customer profile, but aren't necessarily searching for anything at the moment. Google Ads has higher user intent (actively searching), higher average cost per click, best for services, B2B, "needed" products. Facebook Ads has lower intent (browsing feed), lower cost per click, best for lifestyle products, fashion, impulse purchases. Nobody searches for a plumber on Facebook. But you can sell a nice dress by showing it to someone browsing Instagram. When to combine both: Google Ads captures people already searching, Facebook builds awareness and reaches new customers. Remarketing on both platforms reminds about abandoned carts.

Cost per click by industry (CPC): • Legal, financial services: $6-55 • Medical, dental: $3-15 • Real estate: $2-8 • IT, software: $3-12 • E-commerce (electronics): $1-4 • E-commerce (clothing, cosmetics): $0.50-3 • Local services (plumber, electrician): $2-6 • Restaurants, food service: $1-3 Remarketing (ads to people who've already visited your site) is much cheaper: $0.30-1.50 per click. Minimum sensible budget: • Local business, low competition: $1,500-2,500/month • Local business, competitive industry: $2,500-4,000/month • Online store: $3,500-6,000/month • E-commerce, competitive industry: $5,000-12,000/month • B2B services: $4,000-8,000/month • Legal, finance, medical: $8,000-25,000/month These amounts are ad budget only — money that goes to Google. Add agency fees on top.

Pricing models: • Fixed monthly fee: $500-2,500 • Percentage of ad budget: 10-20% • Hybrid model: fixed fee + percentage above threshold Example: with a $4,000/month budget and 15% commission, you pay $4,000 to Google + $600 to agency = $4,600 monthly. Hidden costs nobody talks about: • Landing page: $1,500-5,000 (one-time) • Display ad graphics: $500-2,000 (set) • Ad copy: $400-1,200 • Analytics setup: $500-2,500 The US is one of the most expensive Google Ads markets globally. The same clicks in Poland cost 5-6 times less. For US businesses targeting international markets, this is important information when planning budgets.

"We guarantee #1 position in Google" — nobody can guarantee that. Google doesn't give such guarantees even to their own employees. Won't give you account access — the Google Ads account should be YOURS. The agency should have management access, but you're the owner. When you end the relationship, you're left with nothing. Only report "soft" metrics — thousands of impressions and hundreds of clicks sound impressive. But if there are no sales or leads from it — you're paying for air. A good agency reports: how much was spent, how many conversions, what one conversion cost. Management for a few hundred dollars monthly — real optimization takes time. Honest management starts at $500-800/month minimum. No negative keywords — ask the agency how many you have on your account. If the answer is "I don't know" or "few" — your money is probably being wasted. "Google Partner" as the main selling point — Google Partner status is a low bar, it doesn't guarantee quality.