# How Much Should I Spend on Google Ads?

Source: https://dijitulmarketing.co.uk/guides/how-much-should-i-spend-on-google-ads/
Updated: 2026-10-18

> Set your Google Ads budget by working backwards from what a customer is worth, what you can pay per lead and what clicks cost in your area. dijitul builds that budget with you, then manages the account from £150 a month + VAT or 10 to 15% of spend, whichever is higher, with spend paid to Google.

## Key facts

- Google Ads has no fixed price: you set an average daily budget and pay per click
- Google Ads Help says a campaign can spend up to twice its average daily budget in a day, but no more than 30.4 times it in a month
- Keyword Planner shows low and high top-of-page bid ranges for each keyword in your chosen location
- Budget formula: target leads per month divided by conversion rate, multiplied by average cost per click
- Smart Bidding needs steady conversion data, so very small budgets learn slowly
- dijitul management is from £150 a month + VAT, or 10 to 15% of ad spend, whichever is higher

## Start with what a customer is worth

The right budget is not a percentage someone quotes you. It comes from your own numbers. Before you open Google Ads, write down:

- **Average value of a sale**, or better, the gross profit on it.
- **Close rate**: out of every 10 enquiries, how many become customers?
- **Maximum cost per lead** you can afford and still make money. Divide the profit per sale by the number of leads it takes to win one, then leave a margin.

That maximum cost per lead becomes your target CPA. It is also the figure you would later use with the target CPA bidding strategy.

## Turn it into a monthly figure

Once you know your target, the budget follows from three inputs:

- **Leads you want per month.**
- **Landing page conversion rate**: the share of clicks that become an enquiry or sale. Use your own GA4 data if you have it.
- **Average cost per click** for your keywords and location.

Monthly budget = leads wanted ÷ conversion rate × average cost per click.

For example: if you want 20 leads and 5% of visitors enquire, you need 400 clicks. Multiply 400 by the average cost per click from Keyword Planner and you have a starting monthly spend. Then check the result against your maximum cost per lead. If it does not add up, improve the conversion rate, narrow the keywords or target a tighter area before you raise the budget.

## Finding real click prices

Do not guess click costs. Use **Keyword Planner** in Google Ads. Enter your main service keywords, set the location to your real catchment, and read the "Top of page bid (low range)" and "(high range)" columns. Buying-intent searches such as "emergency plumber near me" cost more than research searches, but they convert far better.

After launch, replace estimates with your own data. Auction insights shows who you compete with, and the search terms report shows what people actually typed. Our guide to PPC costs in the UK explains what drives click prices up.

## How Google spends the budget

You set an **average daily budget** per campaign. Google Ads Help explains that a campaign can spend up to twice that figure on a busy day, but over a month it will not charge more than 30.4 times the daily average. So to spend roughly a set amount each month, divide it by 30.4.

Spread the money where it works hardest:

- **Brand campaign**: cheap clicks that protect your name from competitors.
- **Core search**: your best buying-intent keywords. This usually gets most of the budget.
- **Performance Max or Shopping**: for shops with a Merchant Center feed.
- **Remarketing**: a small share to bring back visitors who did not enquire.

Too many campaigns on a small budget means none gathers enough data. Start narrow.

## When to spend more, and the management cost

Raise the budget when two things are true: you are hitting your target cost per lead, and the campaign shows **search impression share lost to budget**. That metric tells you how many eligible searches you missed because money ran out. If impression share is lost to rank instead, spending more will not help. Fix ad quality, landing pages or bids first.

Remember the management fee sits on top of ad spend. Our Google Ads management is from £150 a month + VAT, or 10 to 15% of ad spend, whichever is higher. If tracking is not in place, conversion tracking is a one-off £145 + VAT, and it is the first thing to fix, because a budget cannot be judged without it.

## Common budget mistakes

- **Spreading thin.** Five campaigns on a small budget means none gets enough clicks to learn. Fund one or two properly.
- **Broad match with no negatives.** Broad match can show your ads for loosely related searches. Without a negative keyword list, a lot of budget goes on clicks that were never going to buy.
- **Display left on in Search campaigns.** New Search campaigns can include the Display Network unless you untick it. Switch it off and test display separately if you want it.
- **Changing too much, too often.** Smart Bidding needs time after each big change. Make one change, wait, then judge.
- **Ignoring the landing page.** Doubling the conversion rate halves the cost per lead, which is often cheaper than doubling the budget.

## FAQs

### What is the minimum I can spend on Google Ads?

Google Ads lets you set your own average daily budget and you pay per click. The practical minimum is whatever buys enough clicks to learn from in a month. Check Keyword Planner bid ranges for your keywords and area, then make sure the budget covers a meaningful number of clicks.

### Should I set a daily or monthly budget?

Google Ads uses an average daily budget for most campaigns. Divide your monthly figure by 30.4, which is the multiplier Google uses. Google may spend up to twice the daily figure on busy days but will not charge more than 30.4 times it over a month.

### How long before I know if my budget is right?

Give a new campaign enough time to collect clicks and conversions, usually a few weeks at least, before judging it. Smart Bidding strategies need conversion data to learn. Compare actual cost per lead against your target, then adjust keywords, bids or budget.

### Does the dijitul fee come out of my ad budget?

No. Ad spend is paid directly to Google on your own account. Our management fee is separate: from £150 a month + VAT, or 10 to 15% of ad spend, whichever is higher. You can always see exactly what Google charged.

### Should I spend more on Google Ads or on SEO?

Ads bring traffic as soon as campaigns are approved and stop when you stop paying. SEO builds slowly but keeps working. Many businesses use ads for immediate leads while SEO grows. Our sister site searchenginetuning.co.uk handles SEO and AI search visibility.

### What if my competitors spend far more than me?

You do not need to outspend them everywhere. Focus on the keywords with the clearest buying intent, a tight location, strong ad copy and a fast, relevant landing page. A higher Quality Score can win clicks more cheaply than a bigger budget.

## Prices and contact

Prices (all from, + VAT; ad spend separate): Google Ads management £150 a month; Paid social (Meta, LinkedIn, TikTok) £150 a month; Social media management £125 a month; Email marketing £95 a month; Marketing automation set-up £195; SMS marketing £75 a month; GA4 set-up £95; Conversion tracking £145; Data Studio (Looker Studio) dashboard £145; Conversion rate optimisation £195 a month; Content marketing £195 a month; Consultancy, audits and strategy £45 an hour. All prices are "from" and exclude VAT. Ad spend is separate and paid directly to Google, Microsoft, Meta, LinkedIn or TikTok. Paid media management is from £150 a month or 10 to 15% of ad spend, whichever is higher. You own every ad account, pixel, audience and email list we set up. Contact: https://dijitulmarketing.co.uk/contact/ · 01623 650333 · info@dijitul.uk