Work out a starting budget
| Step | Example |
|---|---|
| Estimated cost per click | $8 |
| Expected conversion rate on a good landing page | 10% |
| Cost per lead | $80 |
| Leads needed to learn in month one | 25 |
| Monthly ad budget | $2,000 |
These are example numbers. Use Google's Keyword Planner to estimate click prices in your area, then put in your own conversion rate once you have one.
Why too little budget backfires
A tiny budget spreads thin. Ads stop by mid-morning, the data stays thin, and smart bidding cannot learn. Google's bidding learns over 1 to 2 conversion cycles, and more data shortens that. A budget that brings five leads a month gives bidding very little to learn from.
It is better to target fewer keywords and a smaller area well than many keywords poorly.
How Google spends your budget
You set an average daily budget. Google can spend up to twice that on a busy day and less on slow days. Over a month it will not charge more than 30.4 times your daily budget. Plan monthly, not daily.
Start narrow
- One or two of your most profitable services
- High-intent keywords on exact and phrase match
- A tight radius around where you work
- Hours when someone answers the phone
Good example. An electrician starts with $1,500 a month on panel upgrades and EV charger installs within 15 miles. Each service gets enough clicks to judge.
Bad example. The same electrician spreads $500 across twelve services and the whole state, and no ad group gets enough data.
Read what determines a PPC budget. Our PPC management sizes your first budget around the leads you need.