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How Much Does Google Ads Cost in India [Updated in 2024]

To figure out how much Google Ads costs in India, you need to know how Google determines your ad cost. You’re charged for each click to your website, especially with Search ads. These clicks are usually well-focused and may range from ₹10 to ₹100 per click or even higher. Now, Let’s check how much it costs and how much you should spend!

How much does Google Ads cost in India

There are two kinds of expenses in PPC or Google Adwords. One is the fee for managing PPC, and the other is the cost of advertising or the budget.

If you’re advertising with Google in India, you’ll have to pay an 18% tax on your current ad spend, which can be challenging for small businesses. Mega Digital is a Google Partner agency that provides Google advertising services in India, and we only charge a 5% tax on the total ad spending.

>>> Read more: Best 11 Google Ads Agencies in India (2024 Updated List)

Below are the typical expenses for Search ads and Display ads in India.

Search ads cost in India

How much does Google Ads cost in India - search ads

For Google Search ads, the typical benchmark CPC is around ₹20. Advertising on keywords closely related to your business’s services can yield impressive outcomes. These ads reach audiences at the precise moment they’re seeking your product or service, potentially driving website visits, sales, and leads if your keywords perform effectively.

The costs depend on keywords and the quality of your ads and landing pages.

Some highly competitive industries might even see CPCs exceeding ₹100 for certain keywords.

  • Average CPC: ₹20
  • Average CPM: ₹50

The costs depend on keywords and the quality of your ads and landing pages.

It’s important to note that Google Ads operates on a bidding system, where advertisers compete in real-time auctions for ad placements. This means that the actual CPC you pay can vary based on the competition during each auction.

Display ads cost in India

When considering CPM, advertising on Google Display emerges as a highly economical online option. The average expense for Google Display ads typically falls between ₹5 and ₹10. Google display ads have broader objectives and need less precision in targeting, allowing for remarkably affordable cost per impression. On average, Google display ad campaigns incur a CPC of ₹5.

  • Average CPC: ₹5
  • Average CPM: ₹50

The following is the approximate cost for each ad in India: – 10K impressions – ₹3073 – 50K impressions – ₹9552 – 100K impressions – ₹14369.

However, this figure is only an average, and the actual CPM for any given campaign can vary significantly based on the specific circumstances.

Shopping ads cost in India

Getting traffic via Google Shopping ads in India is usually more cost-effective and offers a higher Return on ad spend compared to your local market. Here are the average CPC rates for leading Google Shopping ads categories in India.

  • Average CPC
Shopping ads cost in India - CPC

India has a population of 1,380,004,385, an average yearly e-commerce expenditure of ₹25110, with an average CPC of ₹24.

  • Average CTR

To figure out how well a paid ad is doing, you divide the total clicks on the ad by how many people saw it (impressions). This gives you the click-through rate (CTR).

Shopping ads cost in India - CTR
  • Top e-commerce categories in India

Here are the leading e-commerce categories in India along with the percentage of online buyers who have made purchases in these categories.

Shopping ads cost in India - top category

Minimum budget for Google Ads in India

We often hear this question from Indian businesses who are new to Google Ads. Take your time reading this post, as we’re here to provide exact answers to your queries about Google Ads daily budget.

There is no minimum budget required to run Google Ads in India. While there’s no fixed amount, it’s recommended to start with a budget that aligns with your objectives and allows for meaningful results. Generally, a budget of at least a few thousand rupees per month is suggested to see effective outcomes from your campaigns.

Minimum budget for Google Ads in India

So, imagine your top-of-the-page bid is ₹50, and you aim for 100 clicks daily. In that case, your daily budget would be around ₹5000 (Average CPC multiplied by desired Clicks). Remember, this is an approximate calculation, and the actual amount can differ based on how well your campaign is optimized.

Some agencies provide advertising packages with different pricing options for customers to select from. These prices can often be high, and choosing the right package for your business might be confusing. However, with Mega Digital’s Google advertising service, you have the flexibility to decide how much you want to spend. The team also offers detailed advice on the optimal amount to invest in running ads.

Factors influence Google Ads pricing in India

Google Ads doesn’t have a set price in India. It changes based on things like industry, the life cycle of customers, trends, and more.

Factors influence Google Ads pricing in India

Industry

Google Ads prices change based on the industry. For instance, legal, real estate, and accounting are competitive, with high CPC due to potential profits. In arts and entertainment, CPC is lower, so Google Ads costs are smaller.

Customer life cycle

Google Ads expenses also hinge on customer life cycles. With big-ticket items, customers take time to decide. To keep their interest, you must stay in their minds, leading to more website visits and downloads. This results in higher CPC spending.

Current market trends greatly affect Google Ads costs. Changing demands, market structure, and consumer preferences impact advertising needs. Thus, CPC for Google Ads changes based on market growth, profits, and competition.

Factors influence Google Ads pricing in India current trends

The cost of Google Ads in India varies across different industries. Some industries with high competition, such as legal, real estate, and finance, often have higher costs per click (CPC) due to the competitiveness of keywords. Here are the details:

IndustryAvg. CPCAvg. CPA
Banking & Finance$0.37$3.89
Insurance$0.78$13.62
Legal$0.32$7.21
Education$0.32$7.37
Automotive$0.24$9.38
Logistics$0.26$6.47
Hotels$0.24$13.64
Flights$0.10$14.74
Moving & Cleaning Services$1.01$4.18
Healthcare$0.54$5.25
Dating$0.40$1.89
Jobs & Recruitment$0.19$1.96
Skincare (E-Commerce)$0.31$6.84
Apparel (E-Commerce)$0.14$6.38
Jewelry & Accessories (E-Commerce)$0.43$18.96
Home Appliances (E-Commerce)$0.09$7.11
Electronics (E-Commerce)$0.57$55.32
Health Wellness (E-Commerce)$0.16$5.13

For a comprehensive understanding of the 2023 Google Ads industry benchmarks, don’t miss the opportunity to download our free ebook. This resource dives into the latest trends, performance metrics, and key insights shaping the digital advertising landscape.

google ads industry benchmarks 2023 ebook

Case study: How Indian businesses manage their ad spend

Client: Timeless Nova Fashion Boutique

Challenge: Timeless Nova Fashion Boutique, a small business specializing in trendy apparel, aimed to boost online sales while keeping ad costs low.

Solution: Timeless Nova partnered with Mega Digital, and we crafted a tailored plan focusing on targeted keywords, appealing ad copies, and precise audience segmentation.

Strategy

  • Keyword optimization: Mega Digital researched and selected high-converting keywords related to fashion trends and apparel.
  • Ad copy refinement: Creatively crafted ad copies highlighted Timeless Nova’s unique offerings, driving click-through rates.
  • Precise audience targeting: Mega Digital narrowed down the target audience based on demographics, interests, and shopping behavior.
  • Budget allocation: A strategic budget was allocated to high-performing keywords and demographics.

Results

  • High ROAS: With a minimal ad spend, Timeless Nova achieved an impressive Return on Ad Spend (ROAS) of 8.5.
  • Increased sales: Online sales increased by 150% within the first two months of the campaign.
  • Cost efficiency: The campaign delivered exceptional results without exceeding the allocated budget.
  • Optimized strategy: Mega Digital continuously fine-tuned the campaign, focusing on top-performing keywords and audiences.

Conclusion

By partnering with Mega Digital, Timeless Nova Fashion Boutique demonstrated that a well-crafted strategy, coupled with targeted efforts, can result in remarkable ROAS with a minimal ad spend. The case study highlights the potential for businesses to achieve substantial growth and revenue even with limited resources, underlining the power of strategic Google Ads campaigns.

Wrap up

Google Adwords cost per click in India changes due to several aspects such as industry, competition, keywords, and targeting choices. Collaborating with experienced professionals or agencies can further maximize your investment and help you navigate the ever-changing landscape of Google Ads costs in India. Remember, a well-informed approach will pave the way for effective campaigns that drive growth and success.

Read More: What is a Google Partner in India and How to Become One?

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Ngoc Nguyen
Ngoc Nguyen
Specialize in analyzing the benefits of Google ads for sellers and offer optimized solutions for your Google advertising or marketing campaigns.

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