Google Ads
How much should you spend on Google Ads?
Work back from what a new customer is worth to you. Your budget needs to buy enough clicks to win customers at a cost you can afford, with enough data to learn from.
Start with what a customer is worth
Before you set a budget, decide how much you can afford to pay to win a customer. If a new client is worth a lot over time, you can afford to pay more for each one.
Do the maths
Three numbers give you a starting point: what a click costs, what share of visitors get in touch or buy, and what share of those become customers.
For example, if clicks cost £3 and 1 in 20 visitors enquires, each enquiry costs about £60. If 1 in 4 enquiries becomes a customer, each customer costs about £240. If that's affordable, you have a workable budget.
Spend enough to learn
Google's bidding works better with more data. A very small budget spread across lots of keywords won't show you what works. It's better to focus on fewer, high-intent searches and do them properly.
When to spend more
Increase budget when the cost per lead or sale is steady and the campaigns are limited by budget. Raise it in steps, and watch whether results hold.
FAQs
Is there a minimum Google Ads budget?
Google doesn't set one, but very small budgets struggle to gather enough data to improve.
Should budget be set monthly or daily?
Google works with daily budgets, but plan monthly. Daily spend can vary, and Google balances it over the month.
How do I find out what clicks cost?
Google's Keyword Planner gives estimates. A short test campaign gives real numbers.