GUIDE / STRAIGHT ANSWER

How much is a Google Ads lead worth?

A lead is worth a share of the profit from the customers it is expected to create—not the full value of a sale.

One practical question. One straight answer.

The short answer

If an average completed job leaves £800 after direct delivery costs and one in four genuine leads becomes a customer, a lead has an expected value of £200 before advertising cost. If Google costs £50 for that lead, the expected contribution is £150 before wider overhead and risk.

Graeme Edment, founder of Hypertrail Digital
Practical guide from Graeme Edment13 years making paid search answer to real business numbers.

I manage campaigns directly and use the decision process explained in these guides. Last updated 8 September 2026.

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01

What to check first

The right decision depends on a few commercial facts. Work through these before changing budget or buying another service.

  • ✓Use profit after delivering the work
  • ✓Use the real close rate for genuine leads
  • ✓Subtract advertising cost per lead
  • ✓Allow for overhead, cancellations and capacity
02

Use contribution, not headline revenue

Start with the amount left after materials, direct labour, stock, subcontractors and other delivery costs. A £1,000 job that costs £700 to deliver cannot support acquisition decisions based on £1,000.

03

Multiply by the real close rate

Expected lead value before advertising equals contribution per customer multiplied by the proportion of genuine leads that become customers. £400 contribution at a 20% close rate gives £80 expected contribution per genuine lead before ad cost and overhead.

04

Use a range because small samples lie loudly

Calculate a cautious, expected and strong case using different close rates and delivery costs. Then compare actual cohorts over time. One unusually large customer should not make every future lead appear profitable.

05

What I would check in your account

If you share what the business sells, where customers are and what is not working, I can inspect the actual route from search to enquiry and tell you the first thing I would improve. If there is no sensible paid-search opportunity, I will say so.

Sources checkedPrimary platform documentation (1)

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