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It’s critical to comprehend how Google determines your ad expenditure in order to comprehend the cost of Google Ads in India. You are usually charged for each click when using search advertisements; these clicks are very targeted and can cost anything from ₹10 to ₹100 or more. Let’s examine the current Google Ads price in India to determine your required budget.

Contents

• How much does Google Ads cost in India?
• Google Ads cost in India by industry
• Minimum budget for Google Ads in India
• Factors influence Google Ads pricing in India
• Case study: How Indian businesses manage their ad spend

How much does Google Ads cost in India?

The management fee and the actual ad budget are the two primary categories of costs in Google Ads (PPC).

Remember that Google charges an 18% tax on your ad spend if you’re running advertisements in India. This can be difficult for small enterprises. To help businesses save more money, Mega Digital, a reputable Google Premier Partner, provides advertising services in India with an only 5% service tax on the total amount spent on ads.

👉 See Also: [India’s Top 11 Google Ads Firms, Updated for 2025]

The usual prices for search and display ads in India are broken down as follows:

In India, Google Search advertising typically have a cost-per-click (CPC) of about ₹20. Ads that target keywords that are closely related to your services can be quite effective since they reach visitors at the exact moment they are looking for your product or service, increasing website traffic, leads, and sales.

However, there are a number of variables that affect the real cost, including:

Competition for keywords

Ad quality and relevancy

Experience with landing pages

CPCs might surpass ₹100 per click in industries with intense competition.

Important Cost Benchmarks:

CPC on average: ₹20 to ₹150

Cost per 1,000 impressions (CPM) on average: ₹50

Due to Google Ads’ real-time bidding system, your ultimate cost per click will change based on the competition and the level of competition in the auction.

In terms of cost per thousand impressions (CPM), Google Display advertising is among the most cost-effective options available online. For brands looking to increase reach, Google Display Ads is a cost-effective choice because its average cost per thousand (CPM) often falls between ₹5 and ₹10.

Google Display campaigns are less expensive than search ads since they are intended for a wider audience and require less accurate targeting. For display advertisements, the average cost per click (CPC) is about ₹5, while the average cost per month (CPM) is about ₹50.

Based on impressions, the approximate cost of display ads in India is as follows:

₹3,073 for 10,000 impressions

₹9,552 for 50,000 impressions

₹14,369 for 100,000 impressions

Remember, these are average numbers. A number of variables, including the industry, targeting choices, ad quality, and campaign objectives, might affect the actual CPM.

Compared to many local markets, running Google Shopping ads in India is frequently more affordable and yields a higher return on ad spend (ROAS). The average cost-per-click (CPC) prices for a few of India’s best-performing categories are listed below:

• Average CPC

With a population of 1,380,004,385, India spends ₹25,110 year on e-commerce, with an average cost per click of ₹24.

• Average CTR

It is possible to assess the efficacy of shopping advertising and their possible influence on ad expenses in India in comparison to other markets by knowing the average CTR across all categories. The following comparison of average CTR for various product categories shows how effectively shopping advertising work in India as opposed to the US and the UK:

India’s Top E-Commerce Categories
The top e-commerce categories in India are listed below, along with the proportion of online buyers who have made purchases in each:

One of the most frequent queries we receive from Indian companies who are new to Google Ads is this one. We’re here to provide you with concise, useful answers, so take a moment to read this page.

The good news? In India, there is no minimum budget needed to run Google Ads. However, selecting a budget that supports your company’s objectives is crucial if you want to see significant results. Although there isn’t a hard-and-fast rule, it’s often advised to start with a few thousand rupees every month in order to get quantifiable results from your efforts.

Suppose you want to get 100 clicks a day and your top-of-page bid is ₹50. Your daily budget would be approximately ₹5,000 (average CPC × desired clicks) based on that. Remember that this is only an estimate, and the real cost may differ based on how well-optimized your campaign is.

Numerous firms provide pre-made advertising packages, frequently with exorbitant costs and perplexing choices. It can be difficult to pick the best one for your company. Mega Digital’s Google Ads solution is unique in that it gives you the freedom to choose your own spending limit and professional advice on the appropriate amount to spend in order to achieve your objectives.

• Type of Industry

Google Ads prices vary by industry. Due to the possibility of large rewards, highly competitive industries like law, real estate, and finance sometimes have higher CPCs. On the other hand, sectors like entertainment and the arts typically see less competition, which lowers CPC and total ad spend.

• Lifecycle of a Customer

Ad expenses are also influenced by the type of product or service you offer. Customers usually take longer to make judgments when making difficult or expensive purchases. Businesses frequently need to invest in a variety of touchpoints, such repeat visits and downloads, in order to stay at the top of consumers’ minds, which eventually raises the cost per click.

• Trends in the Market

Pricing for Google Ads is heavily influenced by changing market trends. Advertising competitiveness is impacted by shifting customer behavior, variations in demand, and shifting market dynamics. Because of this, CPC rates might change based on an industry’s level of competition, growth, and profitability.

Customer: BPL Appliances

One of the top home appliance firms in India, BPL Appliances, had a significant problem: even though their website received a lot of traffic, it had a high bounce rate and had trouble turning visitors into paying customers.

Solution: Mega Digital and BPL Appliances collaborated to address issue. Our group created a unique approach that prioritized audience targeting, captivating ad creatives, and high-intent keywords. This strategy greatly increased user engagement and conversion rates while also bringing in more qualified visitors.

Strategy

Keyword Optimization: To ensure that BPL Appliances had the most exposure possible, Mega Digital carried out in-depth research to find high-converting keywords associated with home appliances.

Ad language Improvement: By creating captivating and convincing ad language that highlighted BPL’s USPs, we were able to increase click-through rates and enhance ad performance.

Accurate Audience Targeting: In order to reach the most pertinent audience, Mega Digital refined the targeting strategy, concentrating on important demographics, user interests, and purchasing patterns.

Budget Allocation: In order to optimize the expenditure and maximize returns, we carefully distributed the budget among high-performing keywords and target audiences.

Results

High ROAS:
BPL Appliances achieved an impressive Return on Ad Spend (ROAS) of 8.5, maximizing their results with minimal ad spend.

Increased Sales:
Online sales surged by 150% within the first two months of the campaign, showcasing the effectiveness of the strategy.

Cost Efficiency:
The campaign delivered outstanding results while staying within the set budget, proving its cost-efficiency.

Optimized Strategy:
BPL Appliances continuously optimized the campaign by focusing on high-performing keywords and audience segments, ensuring ongoing improvements and sustained success.

Conclusion

Through their partnership with Mega Digital, BPL Appliances proved that a strategically crafted approach, combined with precise targeting, can deliver exceptional ROAS with minimal ad spend. This case study underscores the potential for businesses to drive significant growth and revenue, even with limited resources, highlighting the effectiveness of well-executed Google Ads campaigns.

Wrap up

The industry, level of competition, keywords, and targeting options are some of the variables that can affect Google Ads’ cost-per-click (CPC) in India. Working with knowledgeable experts or agencies can help you manage the fluctuating Google Ads cost and maximize your investment. By adopting a knowledgeable strategy, you may develop campaigns that spur expansion and produce long-term results.