How Much Should a Small Business Actually Spend on Google Ads?
A realistic, no-hype guide to setting a Google Ads budget — based on your industry, margins, and what 'good' actually looks like.
The honest answer to 'how much should I spend on Google Ads?' is: enough to learn, not so much you panic. Here's how we set budgets with new clients.
The minimum learning budget
Google needs roughly 30 conversions per campaign per month before its algorithm finds a stable rhythm. Work backwards from your cost-per-lead estimate to set a floor — usually $1,500–$3,000/month for service businesses.
The 70/20/10 split
- 70% on proven, branded and high-intent search terms.
- 20% on Performance Max or shopping where applicable.
- 10% on tests — new audiences, creatives, or keywords.
When to scale
Scale only when CPA has been stable for two consecutive weeks. Increase budget by 20% at a time — bigger jumps reset the learning phase and burn cash.
Treat the first 90 days as tuition, not ROI. The accounts that compound are the ones that survived month one.