“How much should I spend on Google Ads?” is one of the questions we’re asked most. The honest answer is that it depends, but it depends on a few things you can work out yourself in about ten minutes. Here’s how.
Start with what a customer is worth
Before thinking about budget, work out what a new customer is worth to you. If an average job is worth £600 in profit and many customers come back, you can afford to pay far more for a lead than a business making £20 per sale.
Then estimate how many enquiries turn into work. If you win one in three, and you’re happy to spend £100 to win a job worth £600, you can afford roughly £33 per enquiry.
Find out what clicks cost in your area
Click prices vary hugely by industry and location. Emergency trades and legal services can cost several pounds or more per click; many retail and hospitality searches cost well under a pound. Google’s free Keyword Planner gives estimates for your exact services and towns.
A simple budget formula
- Pick a realistic target number of enquiries per month.
- Estimate your conversion rate: most decent landing pages turn 5% to 10% of clicks into enquiries.
- Clicks needed = enquiries ÷ conversion rate.
- Budget = clicks needed × average cost per click.
For example, 20 enquiries at a 7% conversion rate needs about 285 clicks. At £2.50 per click, that’s a budget of roughly £715 a month.
Where small businesses waste money
- Broad keywords that attract the wrong people. Use negative keywords to block searches like “jobs”, “free” or “DIY”.
- Sending ads to the homepage instead of a focused landing page for that service.
- Targeting too wide an area. Start with the towns you most want work in.
- Not tracking calls and forms, so you can’t see which keywords actually bring in work.
- Setting it up and leaving it. Campaigns need checking weekly, especially in the first few months.
Should you use Meta ads as well?
Google Ads catches people who are already searching for what you do. Facebook and Instagram ads create demand by putting you in front of the right people before they search. Many local businesses use both: Google for urgent needs, Meta for awareness and offers.
Frequently asked questions
What is a good starting budget for Google Ads?
For most local service businesses, a few hundred pounds a month is enough to test properly. Use the formula above to check it can realistically produce the enquiries you need.
How long before Google Ads works?
You can get clicks on day one, but campaigns usually need four to eight weeks of data and tweaks to become properly efficient.
Do I need an agency to run Google Ads?
Not necessarily, but the platform makes it easy to overspend. An experienced manager usually saves more in wasted clicks than they cost.
Want a second opinion on your current campaigns? Our paid ads team offers a free account review with clear, plain-English recommendations.
