Google Shopping Ads Budget

One of the first questions my clients ask me is how much will Google Shopping Ads cost.

I get it, these numbers are hard to come by and it seems that in many cases, decisions on campaign budgets are made without much consideration of what we want to achieve and how we’ll get there.

How much should you budget for Google Shopping Ads?

The answer is, like everything else in life, it depends. Your budget will depend on how well your website converts traffic to buyers (conversion rate), how much you’re paying for that traffic (cost per click) and of course, your revenue goals.

Let’s look at some online retail averages below and my handy Google Ads budget calculator for online stores to help you make informed decisions.

Check out our guide on the query sculpting Google Shopping strategy.

Google Shopping Average CPC

The average cost per click on shopping ads is $0.66, which means that you’ll pay $66 on average to bring 100 clicks to your website.

How much you’re paying for a click will depend on the type of traffic you’re targeting (branded clicks will be much cheaper) and the quality of product feed. Let’s say John is searching for some sneakers on Google. Once he types his query, Google will scan your products feed and will try matching the most relevant products to Johns query. If your feed is well optimized, the product John will see will be closer to what he’s looking for and he’s more likely to click on your ad.

Source: Wordstream Google Shopping Benchmarks

Google Shopping Average CVR

The average Google Shopping Ads conversion rate is 1.91%. This means that for every 100 clicks, 1.91 clicks will convert to buyers. This is important because the more clicks you can convert to buyers the less you’ll pay for a conversion.

Remember John? Once he clicks on your ad and lands on your website, that’s where your website conversion comes into play. If John clicked on your ad and found the shoes he was looking for on a well-designed, trustworthy website, he’s more likely to make a purchase.