Start with your numbers, not a rule of thumb
Most 'how much should I spend' advice ignores the one variable that actually matters: what a customer is worth to you. Before setting a budget, work backward from your average job value and close rate.
If your average job is worth $1,200 and you close 1 in 4 qualified leads, each lead is worth roughly $300 to you. That number should directly inform how much you're willing to pay per click and per lead.
Estimate cost per click for your industry
Home service keywords with strong buying intent — think 'emergency AC repair near me' or 'roof replacement cost' — tend to carry higher cost per click because competition is fierce and the customer value is high.
A reasonable starting budget gives the algorithm enough clicks per day to gather conversion data. As a rule of thumb, budgeting for at least 15–20 clicks per day during the first few weeks helps Google's system learn faster.
Don't confuse spend with waste
A common mistake is treating a modest budget as 'testing the waters' without giving campaigns a fair, focused run. Spreading a small budget across too many keywords, locations, or ad groups dilutes your data and slows down optimization.
It's usually better to start narrow — your highest-intent services and closest service areas — and expand once you have proof of what converts.
When to increase budget
Once you have a campaign converting at a profitable cost per lead, scaling budget is usually the fastest way to grow — as long as your team can handle the additional volume of leads and jobs.
