How Much Should I Spend on Google Ads? A UK Budget Guide

How much you should spend on Google Ads depends on what a customer is worth to you, but most UK service businesses should budget £750–£1,500 a month in ad spend to start. The right number depends on what a customer is worth to you, your cost per lead, and how many leads you can handle. Here’s how to work it out from your own goals rather than guessing.

What’s the minimum budget for Google Ads in the UK?

There’s no hard minimum, but below roughly £750/month many accounts struggle to collect enough clicks and conversions to learn from. With too little data, Google’s bidding can’t optimise and results stay slow and unpredictable. For competitive sectors (legal, finance, cosmetic), realistic minimums are higher.

How to set your Google Ads budget from your goals

Work backwards from what you want, not from a number that “feels safe”:

  • Start with a customer’s value. If a new client is worth £1,000 and you’ll happily pay £100 to win one, that’s your target cost per acquisition.
  • Estimate your cost per lead. Across industries, the 2026 average cost per lead in search ads is around £50 (roughly $67), though it ranges from under £25 to well over £100 in sectors like legal.
  • Multiply by the leads you want. Ten leads a month at a £50 cost per lead is roughly £500 in spend — before you account for the leads that don’t convert.

Then sanity-check it against capacity: there’s no point generating 40 enquiries a month if you can only service 10.

What conversion rate and cost per lead should I expect?

The average Google Ads conversion rate across industries in 2026 is about 8%, but it varies widely — some service sectors convert at 12–16%, while finance and insurance sit nearer 3%. Your landing page, offer and call handling often move these numbers more than the ads themselves.

Spend vs management fee — keep them separate

Your ad spend goes to Google. Your management fee pays whoever runs the account. Don’t let a quote blur the two. A flat management fee (for example, plans from £295/month) keeps your spend working for you rather than inflating someone’s percentage. See the full breakdown on the pricing page.

A realistic first 90 days

Expect the first few weeks to be about learning, not scaling. Tracking goes in, wasted spend comes out, and the data starts to show which searches actually become enquiries. That’s exactly why I back the first 90 days with an improvement promise — if it’s not working, I keep going at no extra cost until it does.

Frequently asked questions

Can I start with £500 a month?

You can, especially in lower-competition local niches, but expect slower learning. If budget is tight, focus it tightly — fewer keywords, one location, one clear offer.

Does a bigger budget mean better results?

Not on its own. A well-structured £1,000 budget routinely beats a sloppy £3,000 one. Structure, tracking and landing pages matter more than raw spend.

Should ad spend include VAT?

Google adds VAT to UK ad spend, so factor that into your monthly figure.

How long before I see results?

Early enquiries can come within days, but give it 6–12 weeks for the account to stabilise and the cost per lead to settle.

Not sure what budget makes sense for your business? Get a free audit and I’ll give you a realistic figure based on your goals.

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