It’s no secret that where you are matters in the world of online advertising. Just like how people in different states search for different things, the cost of reaching those users with ads varies widely across the globe. This is especially important for businesses advertising internationally, as understanding these global trends can significantly impact their budget and results.

To uncover these trends, we delved into cost-per-click (CPC) data from around the world. Our infographic highlights the countries with the highest and lowest average CPCs, providing valuable insights for advertisers.

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For a detailed breakdown, we’ve listed 97 countries ranked by their average CPC, comparing each to the US average (between $1 and $2 on the Search network).

From the United Arab Emirates with a CPC 8% higher than the US to Serbia at 95% lower, the variations are striking.

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Unpacking the Data: How We Determined Average CPC by Country

To ensure a comprehensive and unbiased analysis, we used our free keyword tool to generate a list of 15,000+ high-volume English search keywords spanning over 20 industries. Leveraging Google Keyword Planner, we obtained average CPC estimates for these keywords in each country, providing insights into Google’s cost estimations across the globe.

By indexing and comparing each country’s estimated CPC against the US estimate, we were able to create this analysis. Utilizing Google Keyword Planner data minimizes bias from individual client targeting or geo-bid modifiers, while the extensive keyword list ensures our findings are not skewed by a single keyword or industry.

Eye-Catching Trends in Average CPC

The data reveals some fascinating patterns:

United Arab Emirates: The Priciest Nation for Advertisers

The UAE takes the lead with the highest average CPC, surpassing even the US by 8%. This is likely influenced by the country’s robust and diverse economy, heavily reliant on finance and tourism, industries known for their high CPCs.

Top 10: Economic Ties, Booming Economies, and English Proficiency

Excluding the UAE and US, the top 10 most expensive countries share common threads: strong economic ties with the US, burgeoning economies, high English-speaking populations, or a combination of these factors. Interestingly, Google holds a near-monopoly in these countries, facing little competition from other search engines.

Local Search Engines: A Counterpoint

Eastern Europe and Russia stand out with surprisingly low CPCs, largely attributed to the struggling Russian economy and the dominance of Yandex, a local search engine commanding a significant market share. Similarly, countries like Japan and South Korea, where Yahoo Japan and Naver reign supreme, also experience lower Google CPCs. This mirrors the US market, where Bing consistently offers lower CPCs than Google.

Mobile-First Audiences: A Growing Trend

South and Central America, Africa, and parts of the Middle East show significantly lower CPCs compared to the US. While economic factors and limited internet access contribute to this, a significant driver is the increasing number of users accessing the internet and Google primarily through their smartphones. Mobile CPCs are typically lower than desktop CPCs, making a robust mobile strategy crucial for reaching these international audiences.

Do you notice any other intriguing trends in the data? We’d love to hear your observations and whether your accounts or industry reflect similar patterns.