Paid Ads

How Much Should a Contractor Spend on Google Ads?

Dec 06, 2024 • 5 min read

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Everyone asks "what should I spend?" The honest answer: it depends. Here's how to figure out your number.

The Variables

Cost depends on your location (NYC vs rural), your trade (locksmiths are expensive), competition level, and how many leads you want.

Typical Click Costs

Home services typically pay $5-50 per click. Plumbers average $20-40. HVAC $15-35. Electricians $15-30. Emergency services cost more.

Minimum Viable Budget

$500-1000/month is the minimum to get meaningful data. Less than that and you won't learn what works.

The Math

If clicks cost $25 and 10% of clicks become leads, each lead costs $250. If you close 30% and average job is $800, each customer costs you $833 to acquire. Does that work for your margins?

Start Small, Scale Up

Start with $500-1000/month. Run for 60-90 days. Track everything. If it works, scale. If not, optimize or stop.

ROI Matters More Than Budget

Don't ask "how much should I spend?" Ask "how much am I getting back?" If every $1 returns $5, spend as much as you can.

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