Business Growth · July 2023
How much should a small business spend on Google Ads
A simple way to set a starting budget from your average sale value rather than from a guess.
By Micheal Baptiste · Published · Updated · 2 min read
The right starting budget is the one that can buy enough clicks to learn something in a month. Work backwards from your own numbers.
Start from the cost of a customer
Take your average sale value and the share of enquiries that become customers. If one in four closes and a click costs four dollars, a customer needs roughly a hundred clicks of budget to appear reliably.
Buy learning first, scale second
A month that produces thirty enquiries teaches you which searches convert. A month that produces three teaches you nothing. If the budget cannot reach learning volume, narrow the keywords instead of spreading thinner.
Cap by patience, not optimism
Set a figure you can spend for three months without stress. Campaigns paused halfway through their first learning period are the most common cause of wasted spend.