Most South African small businesses spend R3,000 to R15,000 a month on Google Ads, plus a management fee if someone runs the campaigns for them. There’s no fixed price: you set your own budget, and Google charges you each time someone clicks your ad.

That flexibility is great, but it also makes Google Ads easy to waste money on. This guide explains how the pricing works, what clicks cost in South Africa, how to set a realistic budget, and how to make every rand count.

How Google Ads pricing works

Google Ads runs as an auction. Every time someone searches, Google decides which ads to show and in what order, based on how much advertisers are willing to pay per click and how relevant and useful their ads are. You only pay when someone clicks, which is why it’s called pay-per-click (PPC).

You control the total through a daily budget. Google may spend a bit more on busy days and less on quiet ones, but over a month it won’t charge more than your daily budget multiplied by the average number of days in a month.

What affects your cost per click

Average cost per click in South Africa

What you pay per click depends mainly on your industry and how competitive your keywords are. Recent South African estimates look roughly like this:

IndustryTypical cost per click
E-commerceR2 – R10
B2B servicesR9 – R25
Consumer and home servicesR12 – R20
IT support and repairsR20 – R30
Health and medicalR5 – R40
LegalR15 – R60+
Finance and insuranceR55 – R60+

Very competitive keywords can cost R200 or more per click. A well-structured campaign with good ads usually pays less per click than a poorly set-up one, because Google rewards relevance.

A realistic starting budget

For most local service businesses, R3,000 to R5,000 a month in ad spend is a sensible starting point. Below about R3,000, campaigns often collect too little data to optimise properly, so results stay unpredictable.

A worked example

Here’s how the numbers might look for a home-services business in Johannesburg:

Amount
Monthly ad spendR4,500
Average cost per clickR15
Clicks per monthAbout 300
Website conversion rate5%
Enquiries per monthAbout 15
Cost per enquiryAbout R300

If one in three enquiries becomes a job worth R3,000, that’s five jobs and R15,000 in revenue from R4,500 in ad spend. Your own numbers will differ, but working through this simple sum tells you whether Google Ads makes sense for you before you spend anything.

Which campaign type should you use?

Management and setup fees

If you hire someone to run your ads, expect a monthly management fee on top of ad spend. In South Africa this is typically R3,500 to R7,500 a month for one platform, or a percentage (usually 10–20%) of spend for larger budgets.

There’s often a once-off setup fee for building campaigns, researching keywords and setting up conversion tracking. Don’t skip the tracking: without it, neither you nor Google can tell which clicks turned into customers.

You can see my paid media packages and setup fees on The Menu.

How to avoid wasting money on Google Ads

  1. Track conversions (form submissions, calls and WhatsApp clicks) from day one, so Google optimises for enquiries, not just clicks.
  2. Use negative keywords to block searches like “jobs”, “free”, “course” or “salary”.
  3. Target the right area. Start with the suburbs or city you actually serve.
  4. Send people to a relevant page with a clear next step, not just your homepage.
  5. Schedule ads for the hours you can answer the phone, if calls are your main goal.
  6. Review the search terms report every week or two, and keep refining.

Signs your Google Ads aren’t working

What a good monthly report should show

Whether you run your own ads or pay someone to, a monthly report should answer one question: what did we get for the money? Look for:

If a report only shows impressions and clicks, ask for conversions. Clicks don’t pay the bills; enquiries do.

Google Ads vs SEO: which is better value?

Google Ads brings results quickly but stops the moment you stop paying. SEO takes months to build but keeps bringing in visitors without paying per click. Most businesses do best with both: ads for immediate enquiries while SEO grows in the background. If you’re deciding between Google and social media advertising, read Google Ads vs Meta Ads: which should you start with?.

Frequently asked questions

Can I run Google Ads with R1,000 a month?

You can, but results will be limited and slow to optimise. It can work for very niche local services with cheap clicks; for most businesses, R3,000 or more gives much more reliable data.

How long before Google Ads brings in leads?

Ads can bring in clicks on the first day. Expect two to four weeks of learning and adjustments before cost per lead settles.

Should I pay ad spend to my agency or to Google?

Pay Google directly, through an account in your business’s name. That way you own the account and data, and you can always see where your money went.

Do Google Ads prices include VAT?

Google charges South African advertisers VAT on ad spend, so budget for 15% on top of the amount you set in your campaigns.

Want a second opinion on your Google Ads budget? Book a free coffee chat.

Keegan Jordaan is the founder of Crema Digital, a Johannesburg digital marketing studio. He has more than 10 years of hands-on experience and most recently ran the full digital marketing function for a group of 18 companies. Book a free coffee chat.