Google Ads has no fixed fee. You pay per click, and you decide yourself how much you are prepared to spend per day. A small Swedish business typically spends SEK 5,000–20,000 per month on ad budget, with click prices ranging from a krona or so to over a hundred depending on the industry.
That's the easy part. The hard question isn't what Google Ads costs, but what a customer is allowed to cost, and only you can answer that.
How the price is set
You don't pay what you bid. At every search, Google weighs two things together:
Your bid: the most you are prepared to pay for a click.
Your Quality Score: how relevant Google considers the ad and the landing page to be for the search, on a scale of 1–10.
The two are multiplied into an Ad Rank, which decides the position. As a result, an advertiser with a high Quality Score can rank above one who bids more, and pay less per click.
This is the most important financial mechanism in Google Ads: relevance is a discount. An ad that points to a page that actually answers the search can cost half as much per click as one that points to the home page.
Click prices in Sweden
Rough levels, which vary widely with location and competition:
- Trades and local services: SEK 15–50 per click
- Legal, finance, insurance: SEK 50–150 per click
- B2B and consulting services: SEK 20–80 per click
- E-commerce, consumer products: SEK 3–15 per click
- Restaurants and hospitality: SEK 3–10 per click
Search for your own services and count the ads at the top. Many ads mean high competition and high click prices.
Work backwards from a customer
This is the only calculation that decides whether Google Ads is profitable for you.
Suppose a click costs SEK 30 and 5 per cent of the people who click get in touch. Then each enquiry costs SEK 600. If you then win one in three enquiries, a customer costs SEK 1,800.
The question becomes simple: is a customer worth more than SEK 1,800 to you? If the answer is yes, with margin, you should advertise more. If the answer is no, something has to change: a better landing page, narrower keywords or a different channel.
Note which of the figures is easiest to influence. Pushing the click price from SEK 30 to SEK 25 is hard. Raising the share who get in touch from 5 to 8 per cent with a better landing page is often entirely possible, and has a bigger effect.
Want ads that bring in customers? Read about Google Ads →
What the agency costs on top of the ad budget
The ad budget goes to Google. If someone is going to manage the account, you add:
- Agency fee: SEK 5,000–15,000 per month, or 10–20% of the ad budget
- Setup: SEK 10,000–25,000 as a one-off cost
- Consultant hourly rate: SEK 900–1,800
A rule of thumb: if the ad budget is below roughly SEK 10,000 per month, the agency fee becomes a disproportionately large part of the total. Then it is usually better to manage the account yourself with a simpler setup, or to spend the money on search engine optimisation instead.
What makes money go to waste
No negative keywords. Without them you pay for searches like "google ads free" and "electrician jobs". This is the single biggest leak in most new accounts.
Match types that are too broad. Broad match lets Google show the ad for anything it considers related. Without careful follow-up it gets expensive fast.
Traffic to the home page. An ad for "roofing Uppsala" should lead to a page about roofing in Uppsala, not to a home page where the visitor has to search on their own.
No conversion tracking. Without tracking you don't know which keywords bring in business, so you are optimising blind. This isn't optional.
No geographic limits. If you sell in Uppsala, you shouldn't pay for clicks from the whole country.
Ads running around the clock. If no one answers the phone at night, it can pay to pause the ads then.
Google Ads or SEO?
They solve different problems.
Google Ads brings traffic the same day. You pay per click, and the traffic stops when you stop paying. Good when you need results now, are testing a new service or have seasonal demand.
SEO takes three to twelve months but keeps delivering once the work is done. Good for what you will be selling for a long time.
For most smaller businesses: advertise what needs to sell now, and build SEO for what you will live on a year from now. The ad data is also valuable for the SEO work: it shows in black and white which keywords actually lead to business, which no keyword research can tell you with the same certainty.
Get started without burning your budget
- Set a low daily budget at the start, for example SEK 100–200.
- Use exact match on a small number of keywords you know are right.
- Add negative keywords straight away. Start with "free", "jobs", "training", "DIY".
- Set up conversion tracking before you start, not afterwards.
- Send the traffic to a page that matches the ad.
- Go through the search terms report every week for the first few months and add new negative keywords.
Point six is what separates a profitable account from an expensive one. The report shows exactly what people searched for when they clicked, and it is almost always more of a mixed bag than you would expect.
If you want to know whether Google Ads is right for your industry, get in touch and we will run the numbers. Also read about how we work with advertising.
Frequently asked questions
How much does Google Ads cost?
Google Ads has no fixed fee. You pay per click and set a daily budget yourself. Small Swedish businesses typically spend SEK 5,000–20,000 per month. The click price ranges from SEK 3 in e-commerce to over SEK 100 in legal services and insurance.
What is Google Ads?
Google Ads is Google's advertising platform, where businesses pay to appear at the top of the search results for chosen keywords. You only pay when someone clicks on the ad. Unlike SEO, it gives visibility immediately, but the traffic stops when you stop paying.
How much budget should I start with?
Set a daily budget of SEK 100–200 for the first few weeks, which means SEK 3,000–6,000 per month. That gives enough data to see which keywords work without costing too much while you learn. Increase it once you know what converts.
Is Google Ads worth it for small businesses?
It depends on what a customer is worth. Work out the cost per customer by dividing the click price by your conversion rate and then by your win rate on enquiries. If a customer is worth clearly more than that amount, it is profitable. For industries with very high click prices and low order values, it often isn't.
Sources
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