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How much would it cost to advertise on Google Ads? This is the first question businesses often ask when starting with the platform.
The reality is that optimal Google Ads spend varies widely business to business, with the greatest influencers being from your industry’s cost-per-click (CPC) prices, business growth targets, to your own available marketing budget.Â
This guide breaks down the primary factors influencing Google Ads spend and provides Singapore-based benchmarks to help you estimate a realistic Google Ads budget for your own business.
What Factors Influence Google Ads Costs?
Google Ads Campaign Types
First, it is important to understand the different campaign types available in Google Ads, which greatly determine the advertising costs:
- Search Ads: The most commonly used campaign type, Search ads appear when users actively search for specific keywords. They have the highest Cost-Per-Click (CPC) prices because they target high-intent users ready to convert.
- Shopping Ads: Product-based ads ideal for e-commerce brands. These attractive catalogue-style ads show the product image and price directly in search results.Â
- Display Ads: Visual banners shown across Google’s partner websites, typically for boosting brand awareness or remarketing.Â
- Performance Max (PMax): An AI-driven campaign type that automatically allocates budget across Search, Display, YouTube, and Maps to maximize conversions based on your goals.
Which is the right campaign type for your business? Search Ads are the standard for lead generation and SaaS businesses while Shopping Ads are designed for e-commerce businesses. Performance Max or Display ads are typically leveraged as supporting campaigns to expand reach or for remarketing.
Cost-per-Click (CPC) Prices: Singapore Industries Benchmark
Cost-per-click (CPC) is the amount you pay only when someone clicks your ad. CPC prices differ widely by industry.
The table below provides average CPC and Cost Per Lead (CPL) estimates for key sectors in Singapore. NOTE: Figures are based on industry averages and historical market data; actual costs depend on sub-industries, real-time auction variables
| Industry Sector | Avg. Search CPC (SGD) | Avg. Display CPC (SGD) | Avg. CPL (SGD) |
|---|---|---|---|
| Professional Services e.g. Legal, Accounting | $5.50 – $9.50 | $0.70 – $1.10 | $80 – $180 |
| Finance & Insurance | $4.50 – $12.00 | $0.80 – $1.30 | $100 – $250 |
| Education & Enrichment | $2.50 – $6.00 | $0.40 – $0.80 | $35 – $80 |
| Healthcare & Medical | $2.50 – $7.50 | $0.50 – $0.90 | $50 – $130 |
| B2B Software & SaaS | $4.00 – $10.00 | $0.70 – $1.20 | $70 – $180 |
| Retail & E-commerce | $0.50 – $2.00 | $0.30 – $0.60 | $15 – $45 |
| Beauty, Wellness & Fitness | $1.50 – $4.50 | $0.40 – $0.70 | $30 – $70 |
| Travel, Hospitality & Tourism | $1.50 – $4.00 | $0.40 – $0.70 | $35 – $90 |
| Logistics & Manufacturing | $3.00 – $7.50 | $0.40 – $0.70 | $60 – $150 |
| Construction & Home Services | $4.00 – $9.00 | $0.60 – $1.00 | $70 – $160 |
| Real Estate & Property | $2.00 – $6.50 | $0.50 – $0.90 | $50 – $140 |
| IT Services & Technology | $4.00 – $11.00 | $0.70 – $1.20 | $80 – $190 |
Industries with higher CPCs are usually those with more intense competition (more bidders) and higher transaction value per customer (Example: law, medical, B2B services).
While Display have significantly cheaper CPCs, the target audience typically have lower buying intent, and lead to a lot less conversion than Search or Shopping ads. They are usually used instead for remarketing or brand awareness objectives to support the main campaign.
Ad Rank
While industry plays a major role, the actual CPCs will still vary between different advertisers. Google Ads uses an auction system where your Ad Rank determines your position and actual cost. This is how it works:
- Cost-Per-Click (CPC): CPCs fluctuate based on how many competitors are bidding for the same keyword at that exact moment. Thus, it can increase during competitive times when there are more advertisers in the bid, such as the holiday season.Â
- Quality Score: Google rewards relevant, high-quality ads. A high Quality Score—determined by your click-through rate (CTR), ad relevance, and landing page experience—can lower your CPC.
- Ad Rank: This is a combination of your bid and your Quality Score. A high Quality Score allows you to outrank competitors even if they have a higher bid.
An expert Google Ads specialist would typically optimize the ad and landing page to improve the quality score and ad rank to achieve lower CPCs.Â
2Stallions is a trusted Google Ads agency and official Google Partner who crafts high-performing campaigns tailored to each business. Schedule a free, no-obligations consultation with our expert team to learn more on how to grow your business through Google Ads.Â
How to Measure the ROI of Google Ads
While CPC is a common metric to measure costs, the ultimate success of a campaign is measured by its contribution to business goals, such as the number of leads or sales revenue, which are represented by the following metrics:
- Conversions: The number of users who take a valuable action (e.g., filling a contact form or completing a purchase).
- Cost Per Lead (CPL): Total spend divided by the number of leads generated (For lead generation businesses). In the above table, we provided the estimated CPL for each industry, derived by dividing the average industry CPC by typical conversion rates observed in Singapore.Â
- Return on Ad Spend (ROAS): The revenue generated for every dollar spent on ads (For e-commerce businesses).
- Cost Per Acquisition (CPA): The total cost to acquire one paying customer.Â
Expert Google Ads management focuses on reducing CPL and CPA while maximizing ROAS, ensuring the budget drives maximum business results.Â
Estimating Your Monthly Google Ads Budget
Based on our agency’s own experience with clients, Singapore businesses typically spend anywhere from SGD $1,000 to $10,000+ on Google ads. These are the common spending profiles based on business size and goals:
- Testing Tier: $1,000 – $3,000 per month. Most common for SMEs with limited budget or businesses testing specific services or local markets.
- Growth Tier: $3,000 – $7,000 per month. Typical for businesses scaling in competitive niches.
- Dominance Tier: $7,000-10,000+ per month. For businesses aiming to more aggressively capture market share, or those within competitive industries with very high CPCs.Â
The “10x CPC Rule”: A common pitfall is spending too little. If your budget is too low, the Google Ads algorithm cannot collect enough conversion data to optimize performance and the campaigns will generate minimal results. In budgeting for Google Ads, experts often recommend setting a daily budget that is at least 10 times your average CPC or more. Multiply this by 30.4 to calculate your ideal monthly budget. For example, if your average CPC is $5:
$5 x 10 = $50 x 30.4 =Â $1,520 (Minimum monthly budget)
Costs of Engaging a Google Ads Agency
For businesses without in-house Google Ads expertise or time to invest, professional agencies can provide expert, end-to-end Google Ads management. Digital marketing agencies typically charge starting fees $800 to $1,200 per month to set up and manage Google Ads campaigns. Fees usually scale based on the total ad spend, as larger budgets require more intensive planning and optimization.
Professional vs. DIY campaigns: While DIY saves on management fees, it often results in higher CPL and lower results due campaigns that are less optimally set up or managed. Expert-run campaigns typically achieve significantly higher ROAS through precise targeting, professionally crafted creatives and technical expertise.Â
Government Grants: Eligible Singaporean SMEs can utilize the Productivity Solutions Grant (PSG) to offset digital marketing costs by up to 50%. This can be combined with the SkillsFuture Enterprise Credit (SFEC) for a total subsidy of up to 90%. Note that the grants offset is applicable to the agency management fees, not the Google Ads budget.
Book a consultation with our team to discover how you can tap on the Productivity Solutions Grant (PSG) for your digital marketing needs.Â
Getting the Most Out of Your Google Ads Budget
Google Ads costs in Singapore are highly variable based on industry and business goals. Whether you are in a high-competition sector like legal services or a high-volume space like e-commerce, the key is to prioritize ROI. You can increase the chance of a successful campaign by engaging experts to setup and manage your Google Ads campaigns.Â
As a seasoned Google Ads agency, 2Stallions experts apply data driven processes to deliver maximum ROI from each client’s advertising budget. The following are some examples of results we have brought to our clients through Google Ads:Â
- HR software solutions provider:Â +329% increase in leads
- Medical aesthetic clinic:Â 112% increase in patient leads
- Culinary training provider:Â +54% increase in student enquiries
Ready to determine the optimal Google Ads budget for your business? Book a free consultation with an expert from 2Stallions’ to receive a customised Google Ads budget recommendation and strategy blueprint tailored to your business.Â
2Stallions: Who We Are
2Stallions is an award-winning, full-service digital marketing agency with offices in Singapore and Malaysia. Since 2012, we’ve helped brands of all sizes turn strategy into growth through SEO services, SEM services, social media marketing services, content marketing services, to website design and development.
Need funding support? We’ve got that covered too. 2Stallions is a pre-approved vendor for the PSG Digital Marketing Grant, allowing eligible Singaporean SMEs to claim up to 50% off our services. We are also a registered vendor of the Digi-TAC Grant.Â
Our results-oriented approach has earned us various industry accolades, from the Marketing Excellence Awards, Asia eCommerce Awards, the Drum Awards for Digital Advertising APAC to Quantum Leap in AI & Digital. We’re also certified partners with Google, TikTok, and Shopify, giving you direct access to the tools, insights, and support that drive real digital performance.
Let’s grow your business. Book a free strategy consultation and get your custom roadmap to digital success.
