How much should you spend on Google Ads? It’s one of the most common (and most misunderstood) questions.
The truth is that there’s no universal answer; it depends on your goals, competition, and how well your campaign is set up.
But there is a strategic way to figure it out.
Here’s how to budget smart and make your money go further.
1. Start with your goals
Are you aiming for enquiries? Bookings? Sales? Think about how many leads you want each month, and what each lead is worth to your business. A solid starting point: expected leads × cost per lead (CPL).
Example: If you want 20 leads and CPL is £25, you need a £500/month budget (plus management and landing page costs).
2. Understand your industry
Some industries are more competitive than others. If you’re a personal injury lawyer in London, or a competitive e-commerce business, you’re going to pay a lot more per click than say a localdog groomer or yoga instructor.
Google Ads is an auction-based system, so if your competitors are bidding high, you’ll need a bigger budget just to be visible.
Tip: Use Google Keyword Planner to research keyword competitiveness or speak to an expert to understand your sector’s average CPC.
3. Your Website’s Conversion Power
Let’s be honest, no matter how good your ads are, if your website doesn’t convert, you’ll waste money.
If your site is slow, unclear, or hard to navigate, you’ll struggle to turn clicks into customers.
That’s why we often combine PPC campaigns with landing page optimisation or full redesigns. It’s not about spending more, it’s about making your spend work harder.
4. Budget for testing, not just winning
PPC isn’t a “set it and forget it” platform. The first few weeks are about:
- Testing ad copy
- Finding the right keywords
- Narrowing your audience
- Figuring out which pages convert best
You need enough budget to gather meaningful data.
Too small a spend, and you’ll be flying blind.
So… What is a good starting budget?
| Business Type | Monthly PPC Budget |
|---|---|
| Local service-based | £300–£1,000 |
| Ecommerce (low-ticket) | £500–£2,000 |
| Ecommerce (high-ticket) | £2,000+ |
| National/competitive | £2,000–£10,000+ |
These figures aren’t set in stone. But if you’re spending less than £10/day, you may not get enough clicks to learn what’s working and what’s not.
How to spend your budget wisely
Don’t spread it too thin. Focus on your best-performing keywords or products first.
Prioritise search over display. For lead generation, search ads usually outperform display ads.
Track everything. Set up conversion tracking properly so you know what’s actually bringing results.
Optimise regularly. PPC performance improves over time if you’re actively refining it.
Final thought: It’s not just about budget, it’s about strategy
A bigger budget won’t fix poor targeting or a bad landing page.
And a small budget can perform brilliantly, with the right strategy.
That’s where we come in. We help businesses:
- Set realistic PPC budgets
- Launch strategic, data-driven campaigns
- Turn ad clicks into actual customers
Want to talk numbers and goals?
We offer PPC strategy sessions with zero pressure to commit.
If we’re a good fit, we’ll help you spend smarter, not just more.
Book a free PPC strategy call – we’ll help you build a realistic, scalable plan.
