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  • Writer's pictureEric Boyd

How To Determine Your Google Ads Budget As A Small Business


As a small business owner, you are obviously aware of the importance of Google ads and other paid media platforms or you wouldn't be reading this blog post. One area that always seems to be a spot that local business owners struggle with on a paid ads side is budget.


How much do you need to spend of Google ads to get a result?


Well...it depends.


See, with Google ads being the auction system that it is, there are going to be a variety of variables that are going to dictate your required budget. Your own business type, your location, your keyword choices etc.


A great example of this would be the difference in cost per click (CPC) between different service based businesses. A shop that tints windows for cars may have a $2-$4 avg cost per click. An HVAC company may have a cost per click in EXCESS of $20!


Major difference right!?


Think of what your cost per click will be as a function of the market you are in. For HVAC, clients are worth potentially $10,000+. So based off of that other people in your space are going to be willing to pay a lot per click to acquire one of those customers. Where as with a window tinting shop, a customer may be worth $600.


So, what is the lowest budget that you should go with?


If you are not a business that works in a super high ticket marketplace where cost per clicks will likely be very high based on what the actual service is worth and what competitors are willing to pay, then we recommend $600/month in Google ad spend as the MINIMUM to start with. Although we would argue the more the merrier.


But overall for 75% of local businesses, $600 a month as far as Google ad spend goes is what we believe to be a good starting point for your business!


Now that you know what the budget you should be spending on Google at a minimum is, are you still hesitant to take matters into your own hands?


If so, you are not alone! You should be proud of yourself for being one of the few business owners that will succeed in the increasingly digital age because you are actively taking the time to do this.


If you are looking for someone to help run your Google ads and make your business more money, then we would be happy to help! Just fill out our contact form and we will be in touch!

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