Google Ads

Stop Wasting Your Money: How to Budget for Google Ads

Learn how much to spend on Google Ads to get more phone calls and bookings without flushing your hard-earned money down the toilet.

AI Summary

Small business owners should avoid 'Smart Campaigns' and the 'Display Network' to prevent wasted spend. A successful Google Ads budget requires a minimum of $30-$50 per day and a focus on high-intent local searches rather than broad, generic terms. Success is measured by the cost per lead versus the profit of a job, not just clicks.

If I had a dollar for every time a business owner in Fortitude Valley or Chermside asked me, "How much do I actually need to put into Google Ads to see a result?", I wouldn’t need to run a marketing agency.

Most people approach Google Ads like a poker machine—they throw fifty bucks in, pull the lever, and hope for a jackpot. When they don't get a flood of phone calls by Friday, they decide "Google Ads doesn't work for my business" and quit.

Here’s the blunt truth: Google Ads works for almost every local business, from plumbers in Morningside to law firms in the CBD. But it only works if you stop guessing and start budgeting based on the profit you want to make.

In this guide, I’m going to show you how to allocate your budget so you actually get more customers, rather than just giving Google a donation. No technical jargon, no "algorithm" talk—just the numbers that matter to your bank account.

The "Minimum Entry" Reality Check

Let’s be honest: if you want to spend $5 a day, don't bother. You’re competing against businesses that are serious about growth. In a city like Brisbane, where competition is healthy, a tiny budget means your ad might show up at 3:00 AM when your customers are asleep, or it won't show up at all because your competitors outbid you before breakfast.

For most local service businesses, you need a minimum of $30 to $50 per day to even gather enough data to see what’s working. If you spend less, you aren't "testing the waters"—you're just wasting time.

Last year, we worked with an electrician based in Aspley. He was spending $1,500 a month on Google Ads but was frustrated. He felt he was getting "clicks" but the phone wasn't ringing enough.

When we looked at his account, his budget was spread too thin. He was trying to show up for every possible search term across the whole of South East Queensland. He was bidding on everything from "how to fix a light switch" (which is a DIY search, not a customer) to "emergency electrician Brisbane."

We changed his strategy. We took that same $1,500 and focused it entirely on his most profitable suburbs and high-intent searches—people who needed a sparky now.

By narrowing his focus, his cost per lead dropped significantly. He didn't need to spend more money; he needed to stop wasting his budget on people who were never going to hire him. Within six weeks, his weekly booking count went from four to eleven. Same spend, better results.

Google is a business. Their goal is to get you to spend as much as possible. They have a setting called "Smart Campaigns" or "Express" which they pitch as "set and forget."

Do not use these.

These automated settings are designed to spend your money quickly, not necessarily effectively. They often show your ads on games, apps, and useless websites where people click by accident. If you want to see real growth, you need to let Google find customers who are actually searching for what you sell, not just anyone with a thumb and a smartphone.

Have you ever seen an ad for a local lawn mower repair shop while you're playing a game on your phone? That’s the Display Network. For 90% of small businesses, this is a total waste of money. You want to be found when someone goes to Google and types in "lawn mower repair near me." You don't want to annoy people while they're trying to play Candy Crush.

If you are on a tight budget, keep 100% of your spend on the "Search Network." This ensures your money is only spent when someone is actively looking for your service.

Instead of picking a number out of thin air, work backwards from your sales goals.

1. What is a new customer worth to you? (e.g., An average plumbing job is $400 profit). 2. How much are you willing to pay to "buy" that customer? (e.g., You’re happy to spend $80 to get that $400 job). 3. How many new jobs can you handle? (e.g., You want 10 new jobs a week).

In this scenario, your weekly budget should be $800 ($80 cost per lead x 10 jobs).

If the math doesn't work—meaning it costs you $200 to get a $100 job—then your website probably isn't doing its job of turning visitors into callers, or you're bidding on the wrong keywords.

I generally categorise Brisbane small businesses into three budgeting tiers:

This is for the solo operator or small shop that needs a steady trickle of new work. At this level, you have to be incredibly disciplined. You can't target the whole of Brisbane. You pick your top 5-10 suburbs and your top 3 services. You want to be the big fish in a small pond. This is where most established local businesses sit. You can cover a wider area (say, all of North Brisbane or the Western Suburbs) and target a broader range of services. At this level, you should be seeing a very clear return on investment. For every $1 you put in, you should be seeing $5 to $10 back in revenue. This is for businesses looking to scale, hire more staff, and put more trucks on the road. At this level, you’re bidding aggressively to make sure you are in the top 3 spots on Google for almost every relevant search in the city.

One of the biggest mistakes I see is business owners turning their ads off after four days because they haven't had a call.

Google’s system needs time to figure out who is clicking your ads and who is actually calling you. This usually takes about 2 to 4 weeks. If you keep changing your budget or pausing your ads every few days, you reset the system and stay in the "expensive and inefficient" phase forever.

I tell my mates: "Give it 30 days. Don't look at the daily fluctuations. Look at the end-of-month result."

You can have a $10,000 monthly budget, but if your website looks like it was built in 2005 and doesn't work on a mobile phone, you are burning money.

Think of Google Ads as the petrol and your website as the car. If the car has no engine, it doesn't matter how much high-octane fuel you pour into it; you aren't going anywhere. Make sure your phone number is easy to find, your site loads fast, and you have real photos of your work. People buy from people they trust.

If you’re ready to stop guessing and start growing, here is your checklist:

1. Audit your current spend: Are you wasting money on the "Display Network" or "Smart Campaigns"? If so, turn them off. 2. Pick your "Money" Keywords: What are the 3 things you do that make the most profit? Focus your budget there first. 3. Set a realistic daily budget: Ensure it's enough to get at least 5-10 clicks per day based on your industry's costs. 4. Track the phone: Use a tracking number so you know exactly which ads are making the phone ring. If you don't track, you can't improve.

Most Brisbane business owners are too busy to spend hours inside the Google Ads dashboard, and I don't blame you. You should be out on the tools or managing your team, not worrying about "negative keywords."

If you want a team that understands the Brisbane market and cares about your bottom line—not just "clicks"—reach out to us. We help local businesses get more phone calls and turn their marketing spend into a predictable lead-generation machine.

Ready to grow your Brisbane business? Contact Local Marketing Group today and let’s talk about a budget that actually works for you.

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