How Much Should a Local Trade Spend on Google Ads?

Start with contribution, not the invoice total

Write down the typical selling price of the service you want to advertise. Subtract the direct costs of delivering it: materials, subcontractors, job-specific labour and travel. The amount left must help pay overhead, your advertising and profit. A large invoice can still leave little room to buy a customer.

Decide how much of that contribution you are prepared to spend acquiring a first job. For repeat services, consider later work only when your own customer history supports it. Do not make an unprofitable first visit look attractive by assuming every new customer will return.

Turn your target into a cost per qualified lead

Here is a planning example, not an Advertux result or an industry benchmark. Suppose an average job leaves CA$600 after direct delivery costs. You choose an acquisition allowance of CA$180 per booked job. If one in three qualified enquiries becomes a booking, the corresponding allowance is CA$60 per qualified enquiry.

The formula is simple: allowable cost per qualified lead = allowable acquisition cost per job × qualified-lead-to-job rate. Use qualified enquiries in that calculation. Wrong-area calls, job applicants and people requesting services you do not offer should not inflate the denominator.

• Contribution per job: CA$600.
• Chosen acquisition allowance: CA$180 per booked job.
• Qualified lead booking rate: one third.
• Allowable acquisition cost per qualified lead: CA$60.

Estimate the traffic needed to learn something

Ask for a local forecast covering the exact services and service area you intend to advertise. Treat it as an estimate, then build a conservative scenario. If clicks cost CA$10 and 10% of visits become qualified enquiries, the implied cost is CA$100 per qualified enquiry. That would exceed the CA$60 allowance in our example.

At CA$30 per day and CA$10 per click, you would buy roughly three clicks a day if the budget spends fully at that price. A handful of visits cannot tell you much about booking performance. You can narrow the service focus, improve the offer, extend an affordable test or postpone paid search. Increasing the budget does not repair weak economics.

Understand what a daily budget actually controls

Google describes an average daily budget, not an identical charge every day. For most campaigns using that budget type, the daily spending limit is twice the average daily budget and the monthly limit is 30.4 times that amount. Budget changes and other budget types require checking the applicable rules in the account.

For example, an unchanged CA$50 average daily budget generally corresponds to a CA$1,520 monthly limit, with up to CA$100 on an individual day for most campaigns. Keep agency fees, taxes and separately purchased software outside the media-spend calculation.

Reference: Google Ads: budgets overview

Set a review rule before launch

Choose the maximum affordable test spend and a review date before activating the campaign. Check tracking and search relevance early; evaluate qualified enquiries and booked work as outcomes mature. If clicks arrive but the phone is not answered, fix the intake process before interpreting the campaign as a demand problem.

Advertux's Canadian launch offer separates the CA$1,000 service fee from advertising spend paid through your own Google Ads account. The fit check assesses services, location and starting budget; it does not promise a fixed number of leads. Bring your job margins, capacity and recent enquiry outcomes so the recommendation can be specific.