How Much Should I Spend On Google Ads?
How Much Should I Spend on Google Ads?
One of the most common questions we hear from tradies and service business owners is:
“How much should I actually be spending on Google Ads?”
The short answer is: it depends on your industry, your competition, and what a lead is worth to you.
The longer answer (and the useful one) is below.
There Is No “One-Size-Fits-All” Budget
A plumber, a builder, and an electrician are all trades — but they should not be spending the same amount on Google Ads.
Why? Because:
- Job values are different
- Competition levels are different
- The number of leads needed to grow is different
For example:
- A plumber might average $300–$1,000 per job
- A builder might average $30,000–$300,000 per project
That changes everything.
Builders are competing for fewer, higher-value jobs, so competitors are willing to spend more per lead to win them. Plumbers, on the other hand, usually want higher lead volume at a lower cost per job.
Typical Monthly Google Ads Spend (NZ Trades)
As a rough guide:
- Plumbers, Electricians, Mechanics
$1,000 – $2,500 per month - Builders, Renovation Companies, Civil Contractors
$2,500 – $6,000+ per month - Specialist Services (Drainage, Roofing, Surveying, Engineering)
$1,500 – $4,000 per month
These are not “recommended” numbers — they’re realistic starting points based on competition and job value.
The Right Question Isn’t “How Much Should I Spend?”
The better question is:
“How much is a lead worth to my business?”
Once you know that, your ad budget becomes much clearer.
How to Calculate What a Lead Is Worth
Here’s a simple way to work it out.
Step 1: Know your average job value
Example:
- Average plumbing job: $600
- Average renovation project: $60,000
Step 2: Know your close rate
How many leads turn into paying customers?
Example:
- 1 in 3 leads convert (33%)
- 1 in 5 leads convert (20%)
Step 3: Calculate lead value
Lead Value = Average Job Value × Close Rate
Examples:
- Plumber:
$600 × 33% = $198 per lead - Builder:
$60,000 × 20% = $12,000 per lead
This doesn’t mean you want to pay that much — it means that’s what a lead is worth to you.
What This Means for Your Google Ads Budget
If:
- A plumbing lead is worth ~$200
- A building lead is worth ~$12,000
Then:
- Paying $40–$80 per plumbing lead makes sense
- Paying $200–$500+ per building lead can still be extremely profitable
This is why builders often need bigger ad budgets — not because Google is expensive, but because the return justifies the spend.
Competition Matters (A Lot)
Another big factor is who else is advertising.
If:
- You’re a builder in a busy region
- Your competitors are spending aggressively
- They’re following up leads properly
Then a small budget often means:
- Limited visibility
- Fewer impressions
- Inconsistent leads
Google Ads is an auction. If competitors are willing to spend more to win high-value jobs, your budget needs to reflect that reality.
Small Budget vs Smart Budget
A common mistake is setting a budget based on comfort, not numbers.
❌ “I’ll just try $500 and see what happens”
✅ “I know a lead is worth $300, so I’m happy to invest properly”
Even a smaller budget can work, but only when:
- Expectations are realistic
- Campaigns are tightly targeted
- Follow-up is fast and consistent
The Final Takeaway
There’s no magic number for Google Ads spend — but there is a right way to think about it.
If you:
- Understand your job values
- Know your close rate
- Treat leads as an investment, not a cost
Then Google Ads becomes one of the most powerful growth tools for a trade or service business.
If you’re unsure what budget makes sense for your specific industry, that’s exactly what we help with at Hands Free Marketing.
We look at your numbers, your competition, and your goals — then build a strategy that actually stacks up.
If you want clarity instead of guesswork, get in touch.
👉 Book your free 15-minute consult
📞 027 590 9421
📧 jevon@handsfreemarketing.com
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