How Much Should a Small Business Spend on Google Ads?

One of the most common questions we get from small business owners is: "How much should I spend on Google Ads?" The honest answer is: it depends on your industry, margins, and goals — but here's a practical way to think about it.

Start with your customer value

Work out what a new customer is worth to you over their lifetime, not just their first purchase.

Set a testing budget first

Before scaling, run a smaller budget for 2-4 weeks to gather data on what's actually converting.

Watch cost per lead, not just clicks

Clicks are cheap and meaningless on their own. Track what it actually costs you to generate one qualified lead.