Work out your cost per click, CPM and cost per acquisition from your ad spend, then plan the budget you'd need to reach a conversion goal at that cost.
CPC = Ad spend ÷ Clicks
CPM = Ad spend ÷ Impressions × 1,000
Cost per acquisition = Ad spend ÷ Conversions
Example:
$1,000 ÷ 1,600 clicks = $0.63 CPC
$1,000 ÷ 350,000 impressions × 1,000 = $2.86 CPM
$1,000 ÷ 20 conversions = $50 per conversion| Network | Average CPC | Average CTR |
|---|---|---|
| Google Display Network | $0.63 | 0.46% |
| Google Search | $2.69 | 3.17% |
Source: WordStream, Google Ads Benchmarks for Your Industry, averages across all industries. For a fuller breakdown of display pricing, see our guide to Google Display Ads cost.
Start from the result you want and work backward:
Then check the answer against what a customer is worth. If the cost per acquisition is higher than a new customer's value, raising the budget only loses money faster. The ROAS calculator shows where your campaign breaks even.
CPC, or cost per click, is what you pay on average each time someone clicks your ad. It is calculated as total ad spend ÷ clicks. $1,000 spent for 1,600 clicks is a $0.63 CPC.
WordStream's Google Ads benchmarks put the average CPC across all industries at $0.63 on the Display Network and $2.69 on Search. Competitive industries such as legal, finance and B2B software usually pay well above the average.
Work backward from your goal. Decide how many conversions you want, divide by your expected conversion rate to get the clicks you need, then multiply by your expected CPC. The planner in this calculator does that math for you.
CPM is the cost per 1,000 impressions. CPM = CPC × CTR × 10. At a $0.63 CPC and a 0.46% CTR, that is about $2.90 per 1,000 impressions. Display campaigns are often bought on CPM and judged on CPC and cost per acquisition.
No. Cheap clicks from poor placements often convert at close to zero, which makes each customer more expensive. Compare campaigns on cost per acquisition first, and use CPC to explain why that number moved.
We audit display and search accounts for wasted spend: poor placements, loose targeting and bidding that chases cheap clicks instead of customers. Tell us your numbers and we'll show you where the budget is leaking.
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