72% of all businesses burn their Google Ads budget through avoidable mistakes. According to a WordStream study, an average of 25.8% of advertising budget is wasted on irrelevant clicks.
This guide shows you transparently what Google Ads really costs - from your first €500 to enterprise budgets of €50,000/month.
How Does Google Ads Pricing Work?
Google Ads is based on an auction model. Your Ad Rank is calculated from: Quality Score × Bid = Ad Rank. This explains why some pay €0.30 per click and others €15.
There are three main billing models:
- CPC (Cost per Click): You only pay when someone clicks on your ad
- CPM (Cost per Mille): You pay per 1,000 impressions
- CPA (Cost per Action): You pay per conversion/action
Google Ads Costs by Industry (Austria 2025)
Click prices vary greatly by industry. Here are the average CPC values for Austria:
- Lawyers & Notaries: €4.50 (Range: €2.50 - €8.00)
- Financial Services: €3.80 (Range: €2.00 - €6.50)
- Insurance: €3.20 (Range: €1.80 - €5.50)
- B2B Software/SaaS: €3.50 (Range: €2.00 - €7.00)
- Real Estate: €2.40 (Range: €1.20 - €4.00)
- Healthcare: €2.10 (Range: €0.80 - €4.50)
- Trades & Services: €1.40 (Range: €0.60 - €2.80)
- E-Commerce (general): €0.80 (Range: €0.30 - €1.50)
- Hospitality & Hotels: €0.90 (Range: €0.40 - €1.80)
Monthly Budgets - How Much Should You Invest?
Recommended budgets by company size:
- Startup/Freelancer: €500 - €1,500/month → 10-30 leads expected
- Small Business (1-10 employees): €1,500 - €3,000/month → 30-80 leads
- Medium Business (10-50): €3,000 - €8,000/month → 80-200 leads
- Larger Companies (50+): €8,000 - €25,000/month → 200-600 leads
- Enterprise: €25,000+/month → 600+ leads
Hidden Costs of Google Ads
Besides the pure advertising budget, there are additional costs to consider:
- Agency fees: 15-20% of ad spend or €500-€2,000 flat rate
- Landing page creation: €500-€3,000 (one-time)
- Conversion tracking setup: €300-€800 (one-time)
- Ongoing optimization: essential for good performance
- A/B testing tools: €50-€500/month optional
Calculate ROI - Is Google Ads Worth It For You?
An example ROI with €3,000 ad budget:
- €3,000 budget ÷ €2.00 CPC = 1,500 clicks
- 1,500 clicks × 4% conversion rate = 60 leads
- 60 leads × 25% close rate = 15 new customers
- 15 customers × €800 customer value = €12,000 revenue
- ROI: 300% (€12,000 / €3,000 = 4:1)
Google Ads vs. SEO - Cost Comparison
Google Ads delivers instant traffic, while SEO takes time but is cheaper long-term:
Google Ads after 12 months: €36,000 costs for 18,000 visitors (€2/visitor constant)
SEO after 12 months: €24,000 costs for 8,000 visitors/month (growing, cheaper long-term)
Break-even point: ~Month 18. From here, SEO is cheaper per visitor.
7 Tips to Reduce Google Ads Costs
- Maintain negative keywords - Exclude irrelevant search terms
- Optimize quality score - Relevant ads = cheaper clicks
- Use ad extensions - More space, more clicks
- Test bidding strategies - Smart Bidding vs. manual
- Refine geographic targeting - Only relevant regions
- Remarketing over cold traffic - Warm leads are cheaper
- A/B test landing pages - Better conversion = lower cost per lead
Frequently Asked Questions
What is the minimum budget needed for Google Ads?
We recommend at least €500-€1,000/month for meaningful data. With less budget, the learning phase takes too long and optimizations are not statistically reliable.
Can I stop my budget at any time?
Yes, Google Ads is completely flexible. You can pause campaigns, adjust budget, or stop completely - without contract commitment.
What does a Google Ads agency cost?
Agencies typically charge 15-20% of ad spend or a monthly flat rate from €500. At GoldenWing, we offer transparent flat rates with no hidden costs.
How quickly will I see results?
First clicks come immediately after campaign launch. For meaningful conversion data, plan 2-4 weeks. Most campaigns reach optimal performance after 2-3 months.
Conclusion: Ready for Profitable Google Ads?
Google Ads can be an extremely profitable marketing channel - if done right. The key lies in continuous optimization, proper tracking, and a budget that matches your industry.
Our experts will analyze your potential and create a customized media plan - free and without obligation.
