How Much Should I Spend on Google Ads?

How Much Should I Spend on Google Ads

Welcome to Google Ads Quick Hits. I’m Todd Nevins, and I’m the founder of CLICKPlacement. We are a Google Ads agency partner.

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How much should I spend on Google Ads each month? It is the number one question that I am asked by New Advertisers.

My answer is how much are you willing to spend on Google Ads each month to drive live traffic to your website?

But that really doesn’t answer your question. Today I’m going to go through a formula for you to use and customize for your business that helps you answer this specific question.

In one of my earlier videos, I talked about bid strategy and maximize conversions and that we needed between 15 and 30 conversions in a 30 day period of time for maximize conversions.

Bid strategy to run properly. So this formula is going to help you come up with how much it’s going to cost you to drive 30 conversions to your website.

And it starts here.

What is a conversion on your website? Somebody can send you a contact us inquiry or a live chat free consultation.

How Much Should I Spend on Google Ads

Just kind of depends what a conversion is on your website and also phone calls, both calls from your website and calls from your call extension.

We are going to use an average conversion rate of 4% for this formula.

In business to business, the average conversion rate is typically between 1% and 3%.
Because their average sales are so much higher, they can profitably run Google Ads at a 1% conversion rate.

But business to consumer, they’re across the board. We could have a 3% conversion rate or a 12% conversion rate business to consumer, but today we’re going to use 4% as an average.

So to run 30 conversions or to drive 30 conversions on your website, divide that by 4%.

We need 750 clicks. So 750 clicks is going to equate to 30 conversions at a 4% conversion rate.

We’re also going to use the dollar amount of $3 per click.

Your industry, it could be $5. If you’re in the legal industry, it could be 25 or $50.

So you’ll have to use the keyword planner in Google Ads to help you come up with what the average CPC is going to be for your industry.

But for this calculation, we’re going to use $3. So for 750 clicks times $3, you’re going to have to spend $2,250 a month, and that will drive 30 conversions.

Change this formula around your business and your industry.

Let me know in the comments if this helped. That’s how much you should spend on Google Ads each month.

Thank you for watching Google Ads Quick Hits.


CLICKPlacement is a Google Ads Partner and works with regional niche companies and national organizations to maximize prospect and customer engagement, and sales with proven Google Ads strategies.

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