“How much should I spend on Google Ads?” is one of the most common questions we get from St. Louis business owners. The honest answer is that there is no single price. But there is a simple way to figure out what makes sense for your business, and it starts with understanding what you are actually paying for.
The two costs: ad spend and management
Ad spend is the money you pay Google directly every time someone clicks your ad. You set a daily budget and Google will not spend much more than that on average.
Management is what you pay a person or agency to build, run and improve the campaigns. You can manage ads yourself, but most business owners find that wasted clicks cost more than good management does.
What affects your cost per click
- Your industry. Clicks for legal, home services and other high value jobs usually cost more than clicks for low ticket services.
- Competition. The more St. Louis businesses bidding on the same searches, the more each click costs.
- Your ad and landing page quality. Google rewards relevant ads and pages with better positions for less money.
- Your targeting. Where, when and to whom your ads show changes what you pay.
Stop thinking about cost per click. Think about cost per lead.
A $5 click that never calls is expensive. A $25 click that turns into a $3,000 job is cheap. What really matters is how much you pay for each real lead, and how many of those leads become customers.
Here is a simple way to set a budget:
- Figure out what a new customer is worth to you, on average
- Estimate how many leads you usually need to close one customer
- That tells you the most you can afford to pay per lead and still make money
Many local campaigns start somewhere around $10 to $30 a day in ad spend, then scale up once the numbers prove out. The right number for you depends on your market and how much work you can handle.
Where most Google Ads budgets get wasted
- No negative keywords. Without them you pay for searches like “free,” “jobs” or “DIY” that will never become customers.
- Targeting too wide. Showing ads 60 miles away when you only serve St. Louis County burns money.
- Sending clicks to your homepage. A focused landing page with one offer converts far better.
- No call tracking. If you cannot see which clicks turned into calls, you cannot improve.
- Slow follow up. Paying for a lead and then calling back hours later hands it to your competitor.
Is Google Ads right for your business?
Google works best for services people actively search for, like repairs, home services and urgent needs. If your customers need to see what you offer before they want it, Facebook and Instagram may be a better first move. We explain the difference in Google Ads vs Facebook Ads.
Get a straight answer for your business
Our Google Ads management is a flat monthly fee, with call tracking and a landing page included. On a free 15 minute call we will look at your market and tell you what budget makes sense. Get a free quote or call or text (618) 593-7175.
