There's no single right number, but there is a sensible way to work it out. Instead of picking a figure out of the air, start from your own numbers.
Start with what a customer is worth
Ask yourself two questions:
- How much profit do you make from an average new customer, including repeat business?
- How much would you happily pay to get one new customer?
If a new customer is worth $1,500 in profit over time, paying $150 to $300 to win one is often a great deal. If a customer is worth $40, Google Ads may be harder to make work.
A simple budget formula
Here's a rough way to estimate a starting budget:
- Look up the typical cost per click for your main searches (Google's Keyword Planner gives estimates)
- Assume around 5 to 10% of clicks turn into an enquiry, if your landing page is good
- Assume a share of enquiries turn into paying customers, based on your own experience
Example: clicks cost $8. You need about 15 clicks per enquiry, so an enquiry costs around $120. If one in three enquiries becomes a customer, each customer costs about $360. If you want 5 new customers a month, that's roughly $1,800 a month.
Typical starting points
For many local service businesses in the US, $1,000 to $3,000 a month in ad spend is a common starting range. Below about $1,000 a month, many campaigns struggle to get enough clicks to learn what works, especially in competitive industries.
That doesn't mean you can't start smaller. It means you should focus a small budget on a very small number of high-intent searches and a tight local area.
Ad spend vs management fees
Your budget has two parts: the money paid to Google for clicks, and the fee for whoever manages the campaigns. Make sure you know which is which. With us, your ad spend goes directly to Google, billed to your own account, and our management fee is separate.
How to spend less and get more
- Target buying searches. "Emergency roof repair Dallas" beats "roof".
- Add negative keywords to block searches like "jobs", "free" or "DIY".
- Limit your area to where you actually work.
- Schedule ads for when you can answer the phone.
- Use a focused landing page with a clear call to action.
- Track calls and forms so you know what's working.
Give it time
The first month is mostly learning. Plan to judge results after two to three months, then shift budget toward what brings in customers and cut what doesn't.