Google Ads is worth it when the profit from the jobs it brings is higher than what you spend to get them. That sounds obvious, but most small businesses that give up on Google Ads never measured either number. This guide shows you how to work it out before you spend.
The sum that decides it
You need four numbers:
- Average profit per job
- How many enquiries you turn into jobs
- Cost per click for your main searches
- How many clicks become enquiries
Here is an example with made-up numbers. A click costs £4. One click in ten becomes an enquiry, so an enquiry costs £40. You win one enquiry in three, so a job costs £120 in ads. If the job leaves £400 profit, the ads pay. If it leaves £90, they do not.
Run the same sum with your own figures. Google's Keyword Planner gives click cost estimates for free.
When Google Ads usually works
- People search for your service when they need it: emergency plumber, pest control, boiler repair.
- The job is worth enough to carry a lead cost.
- You answer the phone or reply to forms quickly.
- You serve a clear area and can limit ads to it.
When it usually does not
- The job value is low and there is no repeat business.
- Nobody searches for what you do, because they do not know it exists.
- Clicks go to a homepage with no phone number near the top and no form.
- Nobody tracks which calls came from ads.
Why small accounts lose money
Small budgets are less forgiving, so the usual mistakes cost more.
- Broad match keywords with no negative keywords. A plumber ends up paying for "plumbing courses" and "plumber salary".
- Ads shown across the whole country instead of the postcodes you cover.
- No conversion tracking, so Google's bidding has nothing to learn from.
- Ads running at 3am when no one answers.
Fix those four and a small account behaves very differently.
How much do you need to start?
There is no minimum spend on Google Ads. In practice you need enough clicks each month to learn something. At AdsFlair we recommend at least £500 a month in ad spend, and most of our clients spend between £500 and £3,000.
How long before you know?
You can get clicks on day one. Give it four to six weeks of clean tracking before judging cost per lead, and long enough for those leads to close before judging cost per job.
Common questions
Is Google Ads better than SEO for a small business? Ads bring enquiries while you pay; SEO takes months and keeps working. Many small businesses start with ads and build SEO alongside.
Can I run Google Ads myself? Yes. Start with one service, one area, exact and phrase match keywords, and call tracking.
Related guides
- Google Ads vs Meta Ads: Which Is Better for a Local Service Business?
- Google Ads Not Converting: 9 Causes and How to Fix Each One
- How Much Does It Cost to Advertise on Google in the UK?
Next step
AdsFlair runs Google Ads for UK trades and local service businesses. Ask for a free Google Ads audit and we will show you where your budget is going and what to fix first. There is no cost and no obligation. See our page on Google Ads management for how we work.