Google Ads PPC averages $5.42 CPC. Meta Ads averages $1.10 CPC and $7.80 CPM. Analysis for Retail in 2026.
Search advertising on Google - pay per click on search results
Facebook and Instagram advertising - highly targetable social ads
The auction, the creative, the budget floor — the three things you actually need to know before picking a platform.
Google Ads runs a real-time second-price auction on every search query. You pay per click, and your effective CPC is a function of your bid, Quality Score, and competitor bids — high-intent commercial keywords (finance, legal, insurance) can 5-10x the platform average because auction density is brutal.
Responsive Search Ads: up to 15 headlines (30 chars each), 4 descriptions (90 chars each). Google mixes them dynamically. Sitelinks, callouts, and structured snippets are effectively required to stay competitive.
Budget floor to reach statistical signal: roughly $50–100/day per campaign, or $1.5K–3K/month per keyword theme. Below that, learning phase never stabilizes.
Meta (Facebook + Instagram) runs an auction across Feed, Stories, Reels, Marketplace, and Audience Network. You optimize for a conversion event; Meta's algorithm decides bid and placement. Effective CPM is $6–12, effective CPC $0.80–1.50 depending on optimization goal and vertical.
Feed: 1:1 (1080×1080), 4:5 portrait (1080×1350). Reels/Stories: 9:16 (1080×1920). Video 15–60s. Carousel supports 10 cards. Copy ~125 chars before the truncate. Creative fatigue is the #1 cost driver — refresh every 2–3 weeks.
The algorithm needs ~50 conversion events per week per ad set to exit learning phase. For a $30 CPA that's ~$1,500/week or $6K/month per campaign. Below that, performance is a lottery.