[ Getting customers ]
How much should a small business spend on Google Ads?
By REM Strategic Services · Updated
[ Quick answer ]
For a local service business, plan on at least $300 a month in ad budget, paid directly to Google. Cost per click varies a lot by trade and area, so the right number depends on your market. If someone manages the ads for you, that's a separate fee. Many agencies charge $500 to $1,500 a month or 10 to 20% of your spend; REM charges a flat $449 a month.
Google Ads has two costs
The first cost is your ad budget. That money goes to Google. You pay for clicks on your ads, and you set a daily budget so you never spend more than you planned.
The second cost is management, if you hire someone. That's the work of setting up the account, choosing keywords, writing ads, tracking calls, and adjusting every week. You can do it yourself, but it takes time to learn.
| Cost | Who gets it | What it pays for |
|---|---|---|
| Ad budget | Clicks on your ads | |
| Management (optional) | You, or whoever runs the ads | Setup, keywords, ads, tracking, and ongoing changes |
Where to start with your budget
For most local service businesses, we suggest planning on $300 or more a month in ad budget. Less than that and it's hard to get enough clicks to learn what works.
Cost per click depends on your trade and your area. Some trades are crowded and expensive. Others are not. The same budget buys more clicks in some markets than in others, so there's no single right number for everyone.
Start with an amount you're comfortable spending for a few months without results being guaranteed. Then adjust based on what the data shows.
How to make a small budget go further
A small budget can work if it's focused. The goal is to show up for people who are ready to call, in the area you actually serve.
- Start with a tight area. Target the towns you serve, not the whole state.
- Use high-intent keywords. Searches like "emergency plumber near me" are closer to a call than "how to fix a leak."
- Add negative keywords. Block searches you don't want to pay for, like jobs or DIY.
- Track calls and form fills as conversions. Clicks alone don't tell you what's working.
- Send clicks to a phone-first page with tap-to-call.
- Give it enough weeks of data before you judge it. A few days isn't enough.
What management costs
Management fees vary. Many agencies charge $500 to $1,500 a month, or 10 to 20% of your ad spend. A percent-of-spend fee means the agency earns more when you spend more.
We charge a flat $449 a month for setup and management. It's never a percent of your budget, and there's no setup fee. You own the ad account, and your spend goes straight to Google.
It's month to month. Stop with 14 days' written notice.
No one honest can promise a number of calls from Google Ads. What you can expect is clear tracking, so you can see what your budget is doing.
When Google Ads isn't the first step
Ads send people to your website or your phone. If your site is slow, hard to use on a phone, or doesn't make it easy to call, you'll pay for clicks that don't turn into calls.
If that sounds like your site, fix it first. A website refresh is $599. Your Google Business Profile is also worth setting up before you pay for clicks.
[ Prices ]
What REM charges for ads, and what goes to Google
- Google Ads setup and management$449 a monthFlat fee. No setup fee. You own the account.
- Your ad budget (paid to Google)$300+ a monthPaid directly to Google. You set the daily budget.
- Grow: one ads channel + local SEO + lead follow-up$799 a month$997 bought apart. Month to month.
- Lead follow-up (text and email to every new lead within minutes)$149 a month
[ Common questions ]
Questions owners ask
- What is the minimum budget for Google Ads?
- Google lets you set any daily budget. For a local service business, we suggest planning on $300 or more a month so you get enough clicks to learn what works.
- Is REM's $449 a month included in my ad budget?
- No. The $449 a month is our flat fee for setup and management. Your ad budget is separate and paid directly to Google.
- Do you charge a percent of ad spend?
- No. Our fee is a flat $449 a month, no matter how much you spend with Google.
- Who owns the Google Ads account?
- You do. If you stop working with us, the account, the history, and the tracking stay with you.
- How long before I know if Google Ads is working?
- Give it several weeks of data, with calls and forms tracked as conversions. A few days isn't enough to judge.
- Can I cancel?
- Yes. It's month to month. Stop with 14 days' written notice.
[ Want it done for you ]
Start with a website that brings in calls.
Starter website for $999 — half now, half when it goes live. You own it. Starting from zero? Launch adds the Florida LLC.
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