“How much should I spend?” is the first question every owner asks about Google Ads. The honest answer depends on your trade, your city and what a customer is worth to you. Here is how to work it out.
Start from the value of a job
Work backwards from your own numbers:
- What is an average job worth?
- How many leads do you need to win one job?
- How much can you afford to pay for that job and still make a profit?
If one in four leads becomes a job, and you can afford to spend a set amount to win it, your target cost per lead is a quarter of that amount.
Find the click costs in your market
Click prices vary widely by trade and city. Emergency services in large metros cost far more per click than routine services in small towns. Your agency can pull estimates for your exact keywords and area before you commit to anything.
Give the campaign enough to learn
A budget that buys only one or two clicks a day will not produce enough data to improve. It is usually better to advertise one profitable service properly than to spread a small budget across everything you do.
Protect the budget
- Target only the areas you serve.
- Add negative keywords so you do not pay for irrelevant searches.
- Run ads during the hours someone can answer the phone.
- Send clicks to a focused landing page, not the homepage.
- Track calls and forms so you know what each lead cost.
Review after a month
After the first few weeks you will know your real cost per lead. If it is below your target, increase the budget. If it is above, fix the targeting, the ads or the page before spending more.