Digital Marketing Google Ads How Much Should I Spend on Google Ads?

How Much Should I Spend on Google Ads?

Asking a marketing agency how much to spend on Google Ads feels like asking a pub how much you should put in the pokies. It’s a loaded question in most tradie’s eyes.

The truth is, we don’t earn more if you increase your ad send. Google takes 100% of your ad spend. The amount you should spend should be enough to rank for keywords that generate leads in your location and industry. There’s no magic figure you should hit, instead, focus on running a profitable ad campaign.

How Much Should I Spend on Google Ads

If you’re going to be paying for every ad click, it’s natural to wonder how much you should be spending on a total Google Ads campaign.

As a small business owner, whether you work on the tools Monday to Friday or you’re in the office setting the schedule for your team, you want to keep costs low. There’s no point buying a $1,000 pair of pants when a $100 pair will get the job done.

With this cost-cutting attitude in mind, most tradies want to spend as little as possible on their Pay-Per-Click marketing. But that creates a HUGE problem…

Because you’re paying for ad clicks, a small ad budget can be exhausted quickly within a few clicks.

If the handful of people who clicked on your ad don’t become customers, you’re throwing money down the drain. You won’t be able to get more work with 1 or 2 people visiting your website each day. It’s scary to think about spending more on Google Ads, but think of the long game.

The more your ads are seen and clicked, the more chances you have to bring in new customers and make your money back – before making the profit that you signed up for.

In short, you should spend as much as possible on Google Ada – as long as it’s profitable.

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“A marketing agency telling me to spend more on my marketing sounds about par for the course. How do I know you’re not trying to fill your own pockets?”

We get it, us telling you to spend more on marketing seems suspicious. But here’s the truth…

We don’t get paid more if you raise your ad budget. Every tradesperson working with us pays us to manage their account and make sure their ads are optimised around the right keywords, to attract the right leads, because that’s how you generate revenue and turn a profit.

Whether you’re spending $1 a day or $100 a day on ads, we don’t see the difference. That ad spend goes to Google.

In this article we’ll tell you why you should look to increase your Google Ad spend in 2021, explain why this isn’t as crazy as it sounds, and leave you with a few tips to help your future Google Ads campaign get off the ground.

“Why can’t I start with a small budget and increase it if the results are good?”

Right now you could buy a small ad in the local paper for a few bucks and test your results.

If the ad gets you a few extra enquiries, you might upgrade to a full-page ad that costs more. In this example you’ve tested the low-cost ad, and only upgraded when the low-cost approach worked.

Unfortunately, paid ads don’t work this way.

If you spend $2 or $5 a day on Google Ads, you might get 1 or 2 clicks a day. This is because service-based keywords can be expensive. If an ad’s cost-per-click (CPC) is $5, a daily budget of $5 will get you ONE click before your budget is exhausted and your ads are turned off for the day.

Will that 1 website visitor want to request a quote or call you out for a service? Maybe, but with such low numbers of people coming from your ads to your website, odds are they’ll leave without turning into customers.

And since you’re only spending a couple of bucks a day, you won’t get enough website traffic to drive the increase in enquiries and leads you’re after.

Curious about leads? Click here to learn how many leads tradies earn using paid ads

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Start with a test budget. This can be on the cheaper side as you’re gathering info. This is your toe in the water without busting open your budget

A test budget is useful because it helps you see what works and what doesn’t on a small scale without taking out a second mortgage.

Since you’re competing with other trade businesses for the same keywords and the same market, it helps to have data on: the keywords that drive the most traffic, the ads that get the most clicks, and the bidding strategies that boost your rankings.

Starting off with a ‘trial period’ of a month can give you time to gather your own data. For example:

· Which keywords convert best?
· Which locations drove the most enquiries?
· Which landing pages saw the most quote requests?
· Which time of day are people most interested in finding you?

The goal of your test budget is to answer these questions.

Then, once you know which keywords, ads, and landing pages will drive the best results, you can start spending more on your ad campaign feeling confident you’ve got a plan – and not just slapping a $5 budget on a random ad and hoping for results.

This is where most tradies fall off the wagon.

They see slow results in the first month and fire their agency. At the same time they get stuck with a “Google Ads doesn’t work” mindset and get defensive when someone suggests growing their business with paid ads.

But a bad experience isn’t the same as a bad marketing strategy.

Let your first month be the research phase of your ads campaign and use what you learn to make the following months highly profitable.

“What monthly budget do you recommend for a Google Ads campaign?”

This depends on your industry, location and competition, but generally speaking we recommend a budget of $1,000 a month as a minimum.

That’s only $30 a day (roughly) which feels less intimidating than dropping $1k on your marketing. Your $1,000 monthly spend will give you enough to play with to target a mix of broad keywords, long tail keywords, and location keywords – with the firepower to bid on the queries that customers use when they’re about to hire a service or make a purchase.

But keep in mind, it’s not what you spend that matters – but how much money you make in return.

If you’re a home renovator and your average client pays $20,000 for your service, paying $30 a day to generate 1 or 2 qualified leads a day doesn’t sound like a bad deal at all. As long as your ads campaign is generating enough leads to cover the cost of your daily spend, it’s not a question of how much you should spend – but how many leads you want to generate.

Curious to learn more about the ideal Google Ads budget?

Click here to learn more about running minimum budget campaigns for tradespeople and how to stretch your money further

FREE REPORT
Tradies: Don’t Invest a Dollar in Digital Marketing Until You Read This!