GUIDE / GOOGLE ADS BUDGETS
How much should a small business spend on Google Ads?
Enough to test a commercially sensible route. Not so much that you are paying to learn an expensive lesson the numbers could have warned you about.
The useful answer
A sensible Google Ads budget depends on the money left from an average customer after doing the work, the percentage of genuine enquiries that become customers, likely advertising cost per lead and available search demand. Work backwards from those numbers before choosing a monthly figure.
Start with what is left after doing the work.
A £200 one-off job and a £12,000 installation cannot support the same acquisition cost. Roughly subtract materials, stock, subcontractors and direct labour from an average sale.
Then account for how many leads become customers.
If one in four genuine enquiries becomes a customer, each enquiry is expected to create roughly a quarter of the profit left from an average customer before wider overhead and risk.
Check whether the market can deliver.
Budget cannot manufacture local searches that do not exist. Keyword research and likely click costs show whether the target area has enough relevant demand.
Leave room to learn.
The first version is an informed hypothesis. A budget needs enough volume to reveal which searches and messages produce quality leads, then improve from evidence.
Before money is spent
Three questions decide whether the route makes sense.
Common questions
Short, honest answers.
How much should I spend on Google Ads?+
There is no honest one-size-fits-all number. It depends on what a customer is worth, how often enquiries turn into customers, local competition and the amount of useful search demand. I work those numbers backwards before recommending a budget.
How quickly can Google Ads start generating enquiries?+
Search campaigns can begin reaching potential customers as soon as they are live, but reliable optimisation takes real conversion data. Expect an informed starting point, then deliberate improvement rather than instant miracles.
Can Google Ads actually generate leads for a small business?+
Yes, when people are already searching for what the business sells, the economics make sense, and the campaign and landing page are set up properly. The useful measure is genuine enquiries and customers — not a nice-looking click report.
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.