If you’re a small business owner wondering how much to spend on Google Ads, you’re not alone.
Many trades and service-based businesses know they need to advertise online, but donā€™t know where to begin or what budget will actually deliver results.
The truth is, thereā€™s no one-size-fits-all number,Ā but there are reliable ways to work out a realistic budget that suits your goals, industry, and market.
Start With the End Goal in Mind
Before you decide how much to spend, you need to get clear on what you’re trying to achieve. Are you aiming for more enquiries, increased sales, or stronger brand visibility in a specific region?
Knowing your objective helps determine what kind of campaign to runĀ and how much to invest.
Once you understand your goal, the next step is to work backwards from your desired outcome. For example, if a new customer brings in $2,000 worth of business over time, how much would you be willing to spend to get that lead?
The Role of Keyword Costs
Google Ads uses an auction model where the cost per click (CPC) depends on how competitive your chosen keywords are. Keywords like “plumber near me” or “emergency electrician” tend to cost more than niche, location-specific terms.
Even if your average CPC is high, that doesnā€™t mean itā€™s not worth it. What matters is your return on ad spend (ROAS). Paying $20 per click is worth it if those clicks convert into jobs that earn you hundreds or thousands in return.
Waste Spend: Timewasters and Competitors
Itā€™s important to factor in that not every click will lead to a sale. Some might be timewasters, tyre-kickers, or even competitors. Thatā€™s why refining your targeting is key,Ā with the right settings, negative keywords, and audience exclusions, you can significantly reduce wasted spend.
Youā€™re also not just paying for immediate results,Ā youā€™re buying valuable data. Over time, this helps you understand whatā€™s working and fine-tune your strategy for better efficiency.
Campaign Types Matter
Your spend will also depend on the type of campaign you run. A standard Search campaign targeting high-intent keywords will cost more per click than a Display campaign designed for brand awareness.
Performance Max campaigns, which run across all of Googleā€™s platforms, can offer strong results but need tighter controls to avoid blowing your budget on low-converting placements.
Think about your objective:
Want immediate leads? Search is best.
Want brand visibility? Display or YouTube works well.
Want Google to optimise across everything? Performance Max could be the way to go.
Each option requires a different strategy and budget approach.
Donā€™t Set and Forget
One of the biggest mistakes small businesses make is setting a Google Ads budget and forgetting about it. Google Ads is not a vending machine,Ā itā€™s a live auction that changes daily.
You need to monitor your campaigns weekly, adjust bids, review search terms, and optimise for performance.
Otherwise, even a good budget can be wasted through neglect.
Whatā€™s a Good Starting Budget?
As a general rule, most small businesses should be prepared to spend at least $500ā€“$1,000 per month to see meaningful results. That gives Google enough data to optimise and gives you enough activity to learn what works.
If your industry is highly competitive, or your service has a high customer value, you may need more. But donā€™t let small budgets scare you off,Ā itā€™s better to start small and scale up once you see whatā€™s converting.
Final Thoughts
Google Ads can be incredibly effective for trades and service businesses,Ā but only if you approach it with a clear goal, the right strategy, and a willingness to test and adapt.
Whether you manage ads yourself or hire a specialist, the key is understanding that success doesnā€™t come from how much you spend,Ā it comes from how wisely you spend it.
If youā€™re unsure how to get started or want a second opinion on your current ads, talk to someone who lives and breathes this stuff. A quick audit could save you thousands.