If you’re running a business in Cardiff, South Wales or the UK and you’re thinking about Google Ads, the first question usually isn’t “how do I set them up?” It’s “how much should I spend?”
It’s a fair question, but the honest answer is: it depends. That’s not a cop-out, it just means your budget should be based on your business goals, not plucked out of thin air. Still, there are smart ways to figure out a sensible starting point. Let’s walk through it.
Don’t start with the budget, start with the goal
Too many businesses start with a number – “we’ve got £200 to spend” and then try to make it stretch. That’s the wrong way round.
You should be asking:
- How many new customers do I want this month?
- What’s a customer worth to me?
- What can I afford to spend to win that customer?
Say you’re a local accountant, and an average new client is worth £800 across the year. Would you spend £100 to get that client? Most would. That’s your target cost per acquisition (CPA).
Now reverse-engineer it. The numbers made simple.
Let’s break it down using an example.
You want: 10 new leads a month
You usually convert: 1 in 5 leads
So you need: 50 clicks
Your average cost per click (CPC): £2.50
Total budget: 50 x £2.50 = £125
If 2 of those leads turn into customers, and each customer is worth £800, you’ve spent £125 to make £1,600. That’s how to think about ad spend – not as a fixed monthly fee, but as a route to revenue.
What kind of budget gets results?
£100-£300/month
You’re in testing mode. It’s tight, but you can still get useful data if you’re focused on one service in one location. Keep it narrow, track everything, and be patient.
£400-£800/month
This is a solid range for local service businesses. You can run a few keyword groups, try different headlines, and start seeing consistent lead flow.
£1,000+/month
Now you’ve got room to scale. This supports more locations, multiple services, remarketing, and testing different landing pages. Ideal if you’re ready to grow.
Just be realistic – a £200 budget in a competitive space like legal, finance or trades might not go far. But used well, even a modest budget can deliver results.
Be aware of hidden costs
The money you pay Google isn’t the whole picture. Don’t forget:
- You need a decent landing page
- You need someone who knows how to structure the campaign
- You need to track calls, form fills, and clicks properly
A poorly built campaign with a £500 budget will lose to a well-structured £300 campaign every time.
What about smart campaigns and AI?
Google’s Performance Max and AI-driven ads are heavily promoted. And yes, they can work. But they’re not magic.
These campaigns need volume. If you’re spending less than £300 a month, the algorithm might not get enough data to work properly. That can lead to wasted spend and poor targeting. AI helps, but only when the setup is sound.
So… what should you actually spend?
Here’s a better question: what can you afford to lose while you learn?
The first month of ads is rarely perfect. You’re testing messaging, audiences, and keywords. Think of it as research you’re paying for. If you go in expecting instant results, you’ll be disappointed. But if you treat it like a smart experiment, you’ll learn what works.
The best approach? Start small, measure everything, and scale up once the numbers add up.
And if this all sounds like too much guesswork? Speak to us and find out how we can get you started with paid ads!
