"What is listing advertising?" "How much does it cost?" "Can we start it in-house?" Listing advertising is one of the most fundamental and result-oriented forms of web advertising, but for those trying it for the first time, it can be full of uncertainties. Listing advertising refers to ads displayed in response to user search keywords in Google and Yahoo! search results. The fee is incurred only when the ad is clicked, allowing it to start with a small budget. This article comprehensively explains the mechanism of listing advertising, cost trends, advantages and disadvantages, and provides a 5-step guide for beginners to implement.

What is listing advertising? A clear explanation of the basics

First, let's understand the basic definition of "what is listing advertising".

Definition of listing advertising

Listing advertising is officially referred to as "search-linked advertising" and is a type of web advertising expressed as "Search Ads" in English. It appears on the search results page of search engines like Google and Yahoo! in response to keywords entered by users.

The main feature is that it adopts a "pay-per-click (PPC)" charging method. Costs are not incurred just by displaying the ad, but only when users click on the ad.

In the domestic search engine market, Google occupies about 83% of the market share. Therefore, if you want to start listing advertising, it is common to begin with Google Ads.

Where do they appear in search results?

Listing ads appear at the top and bottom of the search results page. When displayed, they are labeled "sponsored" or "advertisement," making it possible to distinguish them from natural search results.

Normally, there are up to four advertising slots available at the top of the search results. Since this is the first place users see, if you can get listed here, you can expect a high click-through rate.

Differences from SEO (natural search)

In summary, listing advertising excels in "immediacy," whereas SEO excels in "sustainability." It is possible to maximize traffic from search engines by combining both.

The Mechanism of Listing Advertising: How is the Ranking Decided?

To achieve results with listing advertising, it is essential to understand how the ranking is determined.

The mechanism of pay-per-click (PPC)

Listing advertising adopts the PPC model, meaning expenses are only incurred when an ad is clicked. Simply displaying the ad in search results incurs no costs at all.

Ad Cost = Click Price (CPC) × Number of Clicks

For example, if the click price is 200 yen and it is clicked 50 times in a day, that day's advertising cost will be 10,000 yen.

Auction system and ad rank

The ranking of listing advertisements is not determined simply by how much money you bid. Google determines the ranking based on its unique metric called the "Ad Rank".

Ad Rank = Bid Amount × Quality Score + Effect of Assets (Ad Display Options)

This means that even if the bid amount is low, there is a possibility of being displayed above competitors if the quality score is high.

What is Quality Score? The key to ranking high with low costs

Quality Score is an index that Google uses to evaluate the quality of advertisements on a scale of 1 to 10. It mainly consists of the following three elements.

• Estimated Click-Through Rate (CTR): How likely the ad is to be clicked

• Relevance of the Ad: How well the ad copy matches the search keywords

• Usability of Landing Page: The content and user-friendliness of the page users land on after clicking

If the quality score is high, it is possible to rank high while keeping the bid price low. Improving the quality of ad copies and landing pages is essential to enhance the return on investment of listing advertising.

Costs of Listing Advertising: Pricing Trends and Budgeting

When starting listing advertising, one of the biggest concerns is the cost issue.

Trends in Click Price (CPC)

The average click price ranges from 50 yen to over 1,500 yen, and the average CPC across all industries is around 400 yen (according to a WordStream survey). The higher the search volume and competition for keywords, the more likely the click price will be high.

Estimated Click Prices by Industry

How to Decide on a Monthly Budget (Reverse Calculate from Target CPA)

It is recommended to calculate the monthly budget based on the "Target CPA (Cost Per Acquisition)".

Calculation Example:

Number of clicks needed for one CV = 1 ÷ 0.02 = 50 times
Advertising cost for one CV = 200 yen × 50 times = 10,000 yen

In this case, it is evident that CPA will exceed the target, so improving CVR or lowering CPC is necessary. If the target is set for 20 CVs per month, the recommended monthly budget would be 100,000 yen (5,000 yen × 20)

For beginners, securing a budget of around 200,000 to 300,000 yen and optimizing while accumulating data is realistic. You can start small with a test budget of 50,000 to 100,000 yen per month.

Costs When Hiring an Agency

For example, if the monthly advertising cost is 300,000 yen, an additional fee of about 60,000 yen will be added.

Five Benefits of Listing Advertising

(1) Can be started on a low budget — There is no minimum advertising limit, and with Google Ads, you can start with as little as 200 yen a day. Small and medium-sized enterprises and solo entrepreneurs can easily test this out.

(2) High immediacy — SEO can take several months, but with listing advertising, you can see your ads in search results as soon as the settings are completed, sometimes even the same day.

(3) Can approach an active audience — Users conducting search actions belong to a clear demand category, known as the "active audience." Because you can directly reach users with high purchasing intent, it is more likely to lead to conversions.

(4) Flexible operations — Start, stop, and change the delivery at any time freely. There are no contractual restraints, making it suitable for short-term tests.

(5) Results can be visualized with numbers — You can check all kinds of data like impressions, clicks, CTR, CV counts, CPA, etc., from the management panel, enabling data-driven improvements.

Five Disadvantages of Listing Advertising

(1) Not suitable for expanding brand awareness — You can't reach users who do not search. It is necessary to combine it with display ads or social media ads for brand recognition.

(2) Costs can soar in competitive markets — Due to the auction method, in highly competitive keyword markets, CPC can exceed 1,000 yen.

(3) Requires ongoing operational effort — Regular maintenance like adding or excluding keywords and adjusting bids, as well as testing ad copies, is essential. Neglecting it can lead to unnecessary clicks.

(4) Users who dislike ads may click less — Some users consciously avoid ads when they see the "sponsored" label.

(5) Stopping ads stops customer acquisition — When ad delivery is stopped, it disappears from search results, lacking the stock nature of SEO. In the medium to long term, pairing it with SEO is important.

How to Start List Advertising: A Guide in 5 Steps

With basic settings, it can be completed in about thirty minutes. Let's start with Google Ads first.

Step 1: Create a Google Ads Account

Access the official Google Ads site (ads.google.com) and log in with your Google account. Enter basic information about your business. If you want to make detailed settings, it is recommended to switch to "Expert Mode".

Step 2: Set Campaign Goals and Keywords

Choose the campaign goal (such as "promote sales" or "acquire prospective customers") and select "Search" as the campaign type. Using Google's Keyword Planner (free), check search volume and competition, and start with about 10 to 20 keywords.

Step 3: Create Ad Copies

In the Google Ads Responsive Search Ads, input the following:

• Headlines (maximum 15): Within 30 characters. Include keywords and make it engaging

• Description (maximum 4): Within 90 characters. Be specific about the features or benefits of the service

• Final Page URL: The landing page users will navigate to after clicking

Aligning the content of the search keywords with the ad copy is key to improving the click-through rate.

Step 4: Set Budget and Bidding Strategy

Set the daily budget limit. If this is your first time, starting with a daily budget of around 3,000 to 5,000 yen (approximately 100,000 to 150,000 yen per month) is sensible.

The bidding strategy, as of 2026, is mainly to choose Google's "Smart Bidding". Selecting options like "Maximize Conversions" or "Target CPA" allows Google's AI to optimize the bid amount in real-time based on the goals.

Step 5: Start Delivery and Measure Effects

After starting delivery, regularly check the following metrics on the management screen.

• Impressions

• Click-Through Rate (CTR)

• Count of Conversions (CV)

• CPA (Cost Per Acquisition)

Consider the first 1 to 2 weeks as a data-gathering period, and once sufficient data has been gathered, start implementing substantive improvements.

Five Tips for Achieving Results with Listing Advertising

(1) Regularly set excluded keywords — Check the search term report weekly and exclude keywords that do not lead to results (like "free" or "freebie") to reduce wasteful ad spending.

(2) Maintain consistency between ad copies and LPs — If the content promoted in the ad copy differs from that on the landing page, users will leave. Consistency in messaging contributes to both improved CVR and a better Quality Score.

(3) Utilize long-tail keywords — Specific phrases combining three or more words (e.g., "listing advertising cost average small businesses") have clear search intent, high CVR, and tend to keep CPC low.

(4) Accurately set conversion measurement — Correctly install Google Ads conversion tags. Inaccurate measurement makes it impossible to assess which keywords contribute to results. It is recommended to use Google Tag Manager (GTM).

(5) Leverage AI for automatic optimization — As of 2026, AI-driven automatic optimization is a standard method in listing advertising. In addition to Google’s Smart Bidding, tools like the automated agent "Cascade" can help automate bidding adjustments, keyword optimization, and reporting, capturing improvement opportunities that may be missed manually.

Conclusion

• Listing advertising is a click-based ad that appears in response to search keywords. It is high in immediacy and can directly approach an active audience.

• Cost trends range from CPC of 50 yen to over 1,500 yen, varying by industry. The average CPC across all industries is about 400 yen.

• Rankings are determined by "Bid Amount × Quality Score + Assets" in the Ad Rank. Improving quality is key to enhancing cost-effectiveness.

• How to start involves five steps: create an account → set keywords → create ad copies → set the budget → start delivery. This can be completed in just a few minutes.

• Tips for achieving results include setting excluded keywords, maintaining consistency between ad copies and LPs, focusing on long-tail keywords, accurate CV measurement, and leveraging AI.

If managed correctly, listing advertising can produce significant results even with a minimal budget. Start small with Google Ads and continue improving based on data.