Google Ads and other PPC channels can be a game-changer for small businesses. Done right, it puts you in front of customers who are actively searching for your service. Done wrong, it can drain your budget faster than you can say “click-through rate.”
So the big question: how much should you actually spend on Google advertising?
The Honest Answer: Probably £1,000 Minimum
You’ll often see advice online claiming you can “test” Google Ads with £300–£500/month. While it’s technically possible to run ads on that amount, the truth is you usually won’t gather enough clicks or conversions to make meaningful decisions.
With anything under £1,000/month, your results will be random: one month looks good, the next looks awful, and you can’t tell whether it’s your targeting, your ads, or just chance.
That’s why we recommend small businesses budget at least £1,000/month for Google Ads. This isn’t about spending more for the sake of it, we need to give Google’s system (and you) enough data to actually learn what’s working.
The Caveat: Lower Budgets Can Work
We do have clients running on just a few hundred pounds per month… but they have one thing most businesses don’t: a compelling, low-friction call to action.
Instead of asking for a generic “Contact us” or “Request a demo”, they offer something of immediate value for free. For example:
- A free checklist or calculator
- A no-strings trial or sample
- A quick, personalised audit
This “soft CTA” means prospects don’t need to be sales-ready to click. Once someone takes that step, the business has a nurturing process in place – consisting of email follow-ups, remarketing ads and/or personal sales team outreach – to move them through to purchase over time.
If you can create a genuinely valuable free offer and commit to nurturing leads afterwards, you might keep your ad budget lower and still see results.
Without that, lower spend usually leads to frustration.
Why £1,000+ Matters
Here’s what that budget really buys you:
- Enough Clicks to Spot Patterns: Most industries see cost-per-clicks between £2–£4 (much higher in law or finance, sometimes £10+). With £1,000, that’s 250–500 clicks in a month, which is often enough to see which keywords and ads actually convert.
- Room to Test and Refine: Running just one ad with one keyword won’t cut it. You need the space to try multiple variations, pause the losers, and double down on winners.
- Reliable Conversion Data: Google needs conversion data to optimise your campaigns. Fewer than 10 conversions a month? Google can’t optimise. With £1,000+, you’ve got a fighting chance to feed it enough signals.
The Importance of Testing Time
Even with the right budget, results don’t happen overnight. Google Ads campaigns need 3–6 months of consistent testing before you can confidently scale.
- Month 1: Set up your campaigns, gather data, identify which keywords and ads drive clicks.
- Month 2: Optimise, pause wasted spend, refine ad copy, adjust bids.
- Months 3–6: Build momentum as Google’s algorithm learns from your conversion data.
If you only “dabble” for a single month, you’ll never see the real picture. Think of Ads as an investment in learning first, then scaling once you know where the returns are.
What If £1,000/Month Isn’t Realistic?
Not every small business has £1,000 to commit to Ads and that’s okay.
If you’re not there yet, it doesn’t mean digital marketing is off the table. Other channels may suit you better right now:
- SEO & Content Marketing: Write service pages, answer common customer questions on your blog, and optimise your Google Business Profile. SEO takes time, but it compounds.
- Email Marketing: If you already have a customer list, nurturing them with useful updates can drive sales without paying per click.
- Local Partnerships & Social Media: Collaborations and organic posts cost nothing but time, which is often a better move until you’re ready to scale.
How to Decide Your Budget
Ask yourself three questions:
-
- What’s the value of a customer to me? If a single sale is worth £500 and the lifetime value of that customer is 10x that, spending £1,000 to win a few customers is a great trade.
- Can I commit for at least three months? Ads need time to stabilise. Short bursts don’t work.
- Do I have tracking in place? If you can’t measure enquiries or sales properly, no budget will save you.
Invest Smart, Not Small
If you can invest £1,000/month or more, for at least 3–6 months, Google Ads can be a powerful engine for leads and sales. Any less, and you’ll need either a compelling free offer plus a nurturing funnel, or you’re better off putting energy into SEO and content first.
Not sure if Google Ads makes sense for your business? Book a free marketing review. We’ll crunch the numbers and give you an honest recommendation… even if that means telling you to hold off and focus on SEO first.
Joanna Tracey