If you’re a small business looking to generate quick, high-quality leads, Google Ads can be one of the most effective marketing investments. But the biggest question business owners ask is: “How much should I spend on my Google Ads budget?”
The answer depends on your goals, industry, and competition. However, at Growth Point Partnership, we typically recommend a starting budget of $2,000 per month for most small businesses. Let’s break down how to determine the right budget for your business.
Understanding Cost-Per-Click (CPC) and Industry Competition
Google Ads runs on an auction system, meaning the more competitive your industry, the higher the cost-per-click (CPC). For example:
- Plumbing and HVAC services: $10–$50 per click
- Legal services: $50+ per click
- E-commerce: $1–$5 per click
If your CPC is $10 and your budget is $2,000 per month, you can expect around 200 clicks to your website. If 10 percent of those convert into leads, that’s 20 new leads per month.
Allocating Your Google Ads Budget
A well-structured Google Ads campaign typically includes:
- Search Ads – Targeting people actively searching for your services
- Remarketing Ads – Reaching visitors who didn’t convert the first time
- Display Ads – Increasing brand awareness
With a $2,000 monthly google ads budget, you might allocate:
- $1,500 for search ads to attract high-intent traffic
- $300 for remarketing ads to bring visitors back
- $200 for display ads to boost brand awareness
What’s a Good Return on Investment?
A strong return on ad spend (ROAS) is at least three times your investment. If you’re spending $2,000 per month and generating $6,000 or more in revenue from Google Ads, your campaign is performing well.
Can You Start with Less?
While $2,000 per month is a strong starting point, some businesses can begin with $1,000 per month, though lead volume may be lower.
Google Ads is not an expense—it’s an investment in growing your business. Start small, optimize, and scale your budget as you see results.