How Much Should Small Businesses Spend on Google Ads in 2025?

If you’re a small business owner in the UK, whether you're a builder, tradesperson, local service provider or a small agency, you’ve probably considered running Google Ads to bring in more local leads. But how much should you actually be spending? In this blog, we’ll break it all down so you can make informed decisions and avoid blowing your budget.

This guide is designed specifically for UK-based service businesses focused on lead generation (rather than eCommerce), and follows current best practices and data for 2025.

How Do Google Ads Costs Work?

Google Ads works on a pay-per-click (PPC) model, which means you only pay when someone actually clicks your ad. The amount you pay per click (CPC) depends on how competitive your chosen keywords are, your location, and how well-optimised your ads are.

The average CPC in the UK for service-based businesses typically ranges from £1 to £4, but can go higher in more competitive sectors or locations (e.g., London). If you're in a local trade like plumbing, landscaping, or roofing, you’re likely looking at £2–£3 per click as a realistic average.

What’s a Good Google Ads Budget for a Small Business?

Most small service-based businesses in the UK spend between £300 and £1,500 per month on Google Ads. The right budget for you depends on your:

• Goals (how many enquiries you want)

• Industry

• Location

• Target cost per lead (CPL)

Let’s say you're a roofer in Hertfordshire and want to get 15 solid enquiries a month. If you estimate a CPL of £30, you’ll need a monthly budget of about £450 to hit that goal.

Industry Examples for Lead Generation

Here’s a rough guide for CPL based on typical UK local service businesses in 2025:

• Roofers, Electricians, Plumbers: £20–£40 per lead

• Landscapers, Garden Designers: £25–£50 per lead

• Auto Repairs, MOT Centres: £15–£35 per lead

• Cleaning Services (Domestic & Commercial): £10–£30 per lead

• Consultancy Services (Marketing, Finance, etc.): £30–£60 per lead

If you’re running your own ads and not seeing results, it might be time to consider a PPC Audit to identify what’s draining your budget.

How to Set Your Google Ads Budget (Without Guessing)

Here’s a straightforward method to calculate a monthly budget that actually works:

1. Know your lead value – How much is one new customer worth to your business?

2. Set a realistic CPL – Based on your trade, location, and service (see ranges above).

3. Work out how many leads you need – To keep your team busy or meet your revenue target.

4. Multiply leads x CPL – That’s your monthly ad budget.

   
   

For example, a builder who needs 10 quality leads per month, at £35 per lead, would want to spend about £350/month on ads.

5 Ways to Maximise Your Google Ads Spend

1. Target Local, High-Intent Keywords: Instead of “plumber,” try “emergency plumber in St Albans” or “boiler repair near me.”

2. Use Negative Keywords: Exclude terms like “free,” “DIY,” or unrelated locations to stop wasting clicks.

3. Optimise Your Landing Pages: Make sure the page people land on answers their question and has a clear CTA. Not sure where to start? My Google Ads Management Services includes landing page recommendations.

4. Track Conversions: If you're not tracking calls, form submissions or WhatsApp messages, you're flying blind. I can set up all your tracking properly in your Google Ads Audit.

5. Review & Optimise Weekly: Tweak bids, pause underperforming ads, and test new headlines regularly. Don't set and forget.

   
   

Final Thoughts

There’s no one-size-fits-all answer to “how much should I spend on Google Ads?”—but with a little planning and clarity around your goals, you can build a budget that delivers real, measurable results.

If you’re still unsure how much to spend or how to get the best return from your budget, let’s chat. As a Google Ads specialist based in Hertfordshire, I help small businesses across the region generate leads that actually convert—with no fluff, no jargon, and no long-term contracts.

Book your free consultation today and let’s make your ad budget work harder.

FAQs

How long will it take before I see results from Google Ads?

You can start seeing clicks and impressions almost immediately after your ads go live. However, it typically takes 2–4 weeks to gather enough performance data to start optimising properly. For lead generation, you may need 4–8 weeks to see consistent, quality leads especially if you're testing new campaigns.

What happens if my Google Ads budget is too small?

Is it better to spend more on clicks or improve my website first?

How do I know if I’m paying too much per lead?

Can I pause or adjust my Google Ads budget at any time?