What Is a Good Budget for Google Ads?

One of the most common questions business owners ask is, “How much should I spend on Google Ads?” The answer depends on your industry, competition, location, and goals — but there are proven guidelines you can follow to make sure your budget works for you.

Start with your goals

Your Google Ads budget should be tied directly to your objectives. Are you trying to generate leads, increase website traffic, or drive sales? The clearer your goal, the easier it is to determine the right spend.

• Lead generation: Budget based on your target cost per lead (CPL).
• E-commerce sales: Budget to achieve your target return on ad spend (ROAS).
• Brand awareness: Focus on impressions and reach rather than direct conversions.

Consider industry benchmarks

Some industries require higher budgets because the competition is fierce and cost per click (CPC) is higher. For example:

• Legal and insurance industries often see CPCs from $10 to $50.
• Local services like plumbing, HVAC, and MedSpas often range from $5 to $15 per click.
• E-commerce can be anywhere from $1 to $5 per click depending on product demand.

The 5–10% revenue rule

A common approach is to allocate 5–10% of your gross revenue toward marketing, with a portion of that going to Google Ads. For businesses starting out, spending $1,500 to $3,000 per month often provides enough data to optimize campaigns effectively.

Account for testing and optimization

Your first 60–90 days should include extra budget for testing keywords, ad copy, and landing pages. This learning phase helps you identify what works so you can scale confidently.

When to increase your budget

• If your campaigns are profitable and you can handle more business.
• If you consistently hit your target ROAS or CPL.
• If competitors are outbidding you for top positions.

The bottom line

A good Google Ads budget is one you can sustain, measure, and adjust based on results. Start with a realistic amount that gives you enough clicks to collect meaningful data, then optimize and scale as you see profitable returns.

Need help setting the perfect Google Ads budget? Contact us for a tailored ad strategy that maximizes every dollar.