How Much Should a Small Business Spend on Google Ads? A Framework (Not a Guess)

"How much should I spend?" is the wrong starting question. The right one is "what does a customer cost in my market, and what is one worth?" Here's how to work it out.

1. Estimate cost per click

Google's Keyword Planner shows ranges for your services and city. Emergency and legal terms are expensive; niche services are cheaper.

2. Estimate conversion rate

A good landing page for a high-intent service often converts a meaningful share of clicks into calls or forms. A slow homepage converts far fewer.

3. Estimate close rate

Of the leads, how many become customers? Your history tells you.

4. Do the math

Cost per customer = cost per click ÷ conversion rate ÷ close rate. Compare it with the profit from a customer (including repeat business).

5. Budget for learning

You need enough clicks each month to learn what works — usually enough for dozens of leads, not a handful. Too small a budget produces noise, not data.

When ads aren't worth it yet

• Your website is slow or unclear.
• Nobody answers the phone quickly.
• No tracking is in place.
• Your Google Business Profile and reviews are weak.

Fix those first; they make every ad dollar work harder. We'll give you an honest recommendation on a free call.