GUIDE / STRAIGHT ANSWER
What Google Ads budget should a small business start with?
There is no useful universal minimum. A sensible test budget comes from the value of a customer, the close rate, likely cost per click and available search demand.
The useful answer
Estimate the profit left from an average customer after delivering the work. Multiply that by the percentage of genuine enquiries that become customers. This gives the expected value of a lead before advertising cost. The monthly budget should then be large enough to test a meaningful number of clicks without risking money the business cannot comfortably lose.
A practical answer from Graeme at Hypertrail Digital, based on 13 years in digital marketing.
The short answer
Estimate the profit left from an average customer after delivering the work. Multiply that by the percentage of genuine enquiries that become customers. This gives the expected value of a lead before advertising cost. The monthly budget should then be large enough to test a meaningful number of clicks without risking money the business cannot comfortably lose.
What to check next
The right decision depends on a few commercial facts. Work through these before changing budget or buying another service.
- ✓Profit left from an average customer
- ✓Enquiry-to-customer close rate
- ✓Likely Google cost per lead
- ✓Enough monthly searches to learn from
Apply it to your business
If you share what the business sells, where customers are and what is not working, I can look at the actual route and tell you the first thing I would improve.
Before money is spent
Three questions decide whether the route makes sense.
Common questions
Short, honest answers.
Is Google Ads suitable for every local business?+
No. There needs to be enough relevant search demand, sensible customer economics and a website or landing page capable of turning visits into enquiries.
Do you lock clients into a long contract?+
No long-term contract. The work should continue because it is useful and commercially sensible.
A useful first look. No obligation.
Where could your next worthwhile leads come from?
Tell me what you sell, where customers are and what is not working. I'll look at it personally and tell you the first thing I would improve.