How much should a small business spend on Google Ads?
There’s no magic number, but there is a sensible way to work out a starting budget. Here’s how we think about it.
It’s the first question almost every small business asks, and the honest answer is: it depends. But it depends on things you can actually work out, rather than a figure plucked from the air.
Work backwards from a customer
Start with what a new customer is worth to you, and how many enquiries it usually takes to win one. That tells you what you can afford to pay for an enquiry, and what you can afford to pay for a click.
Your budget should come from your numbers, not your nerves.
Start focused, not broad
A small budget spread across every service and every town achieves very little. Pick your most profitable service and your core area, and do that properly first.
Give it time to learn
The first few weeks are about learning which searches turn into calls. Judge results over a sensible period, not after three days, and cut what isn’t working.
- Know what a customer is worth
- Know how many enquiries win a job
- Start with one service in one area
- Review weekly, judge monthly
More from the blog.
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Paying for clicks then dropping people on a busy homepage is one of the most common ways trades waste ad money.
Amazon PPC in 2027: what’s changing and how to prepare
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