If you started Google Ads today, what would be a sensible budget?
This is the question almost everyone asks first. The problem is, most answers online are vague, complicated, or full of jargon. Let’s fix that. You don’t need to spend big. You just need to spend smart.
Google Ads is a pay-per-click system. You pay only when someone actually clicks your ad. Not for views. Not for impressions. Just clicks. Which means the real skill is in attracting the right clicks and blocking the wrong ones.
Because clicks without results hurt.
Clicks that turn into leads or sales are where the value is.
What You’re Actually Paying For
Google Ads is an auction. Different brands bid on the same keywords. Higher competition means higher cost. That’s it. No complicated mystery.
So how much are you looking at?
Typical Cost Per Click (CPC) Ranges
These are average ranges for the UK and broader European markets:
| Category | Expected Cost Per Click |
|---|---|
| General Services (cleaning, trades, repairs) | £0.50 to £2.50 |
| Personal Services (beauty, fitness, coaching) | £1.20 to £4.50 |
| High Competition Sectors (legal, insurance, finance, B2B SaaS) | £4 to £18+ |
| YouTube (per view) | £0.02 to £0.15 |
You don’t need to memorise these numbers. Just keep the range in mind so your expectations stay realistic.
How to Work Out Your Starting Budget
Here’s the simplest formula you’ll ever need:
Monthly Budget = Number of Clicks You Want × Average CPC
Example:
You want 300 clicks in a month.
Your market averages £1.50 CPC.
300 × £1.50 = £450 monthly budget
That is a perfectly reasonable starting point for most service-based businesses.
But Budget Alone Isn’t Enough
To avoid burning money, you need three core benchmarks:
| Metric | Good Starting Target | Meaning |
|---|---|---|
| CTR (Click-Through Rate) | 5 percent or higher | Your ads are relevant |
| Conversion Rate | 3 to 10 percent | Your landing page makes sense |
| CPA (Cost Per Acquisition) | Aim for half of what a customer is worth | You stay profitable |
If one number falls, costs rise. If all three hold, your performance compounds.
A Simple 14-Day Setup Plan (No Overwhelm)
Think of this as the beginner-friendly road map.
Days 1 to 3
- Choose 8 to 12 high-intent keywords.
- Example: “emergency electrician Bristol” rather than “electrician”.
- Separate branded keywords from non-branded keywords to track performance clearly.
Days 4 to 7
- Write two versions of your ad to test messaging.
- Add sitelinks and call extensions.
- Target only areas you actually serve.
Days 8 to 10
- Add negative keywords like free, cheap, DIY, training, jobs.
- Pause keywords that eat spend without producing leads.
Days 11 to 14
- Increase budget by 10 to 20 percent on campaigns with low cost per lead.
- Set up simple remarketing to bring back warm visitors.
Small steps. Controlled changes. Real data.
Budget Examples Based on Real Goals
Goal: 30 enquiries per month
Target CPA: £12 to £25
Estimated starting budget: £400 to £800/month
Small online store aiming for 50 sales
Average Order Value: £35
Target ROAS: 3x
Starting budget: £700 to £1,200/month, improving product titles and images as you go.
Common Mistakes to Avoid
These are the things that quietly drain accounts:
- Choosing keywords that are too broad.
Always focus on buying intent, not curiosity. - Slow or messy landing pages.
People leave in seconds if they get confused. - Ignoring the search term report.
This is where wasted budget hides.
Fix these three and you immediately outperform half your competitors.
The Core Message
Start smaller than you think.
Something like £15 to £30 per day is enough to gather meaningful data as long as you choose the right keywords and have a clear landing page.
Track these three numbers only:
- CPC (Are clicks affordable?)
- Conversion Rate (Do visitors take action?)
- Cost Per Lead/Sale (Are you profitable?)
Everything else is noise.