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PPC & Google Ads

“How much will Google Ads cost me?” is the first question almost every business asks us. The honest answer is that there are two separate costs: what you pay Google for clicks, and what you pay someone to manage the account. This guide explains both, with the typical price ranges we see across the UK market in 2026, so you can budget with confidence.

The two costs of Google Ads

  1. Ad spend: the money you pay Google each time someone clicks your ad. You control this with a daily budget.
  2. Management fee: what you pay an agency or freelancer to set up, run and improve your campaigns.

Keep them separate in your head. A cheap management fee on a badly run account usually costs far more in wasted ad spend than it saves.

How much should you spend on ads?

Google Ads works on an auction, so there is no fixed price per click. What you pay depends on your industry, location and how competitive the keywords are. Legal, finance and trades such as emergency plumbing are typically among the most expensive; many B2C and local service searches cost much less.

A simple way to set a starting budget:

  1. Estimate your cost per click using Google’s Keyword Planner for your main keywords.
  2. Estimate your conversion rate. A well-built landing page commonly converts somewhere around 3–10% of visitors into enquiries.
  3. Work out your cost per lead: cost per click ÷ conversion rate. For example, £3.00 per click at a 5% conversion rate is about £60 per lead.
  4. Compare that with what a customer is worth to you. If a new client is worth £1,500, a £60 lead is a very good deal.

For most small and medium UK businesses we’d suggest at least £1,000–£1,500 per month in ad spend to gather enough data to optimise properly. Very local or niche campaigns can work on less.

How agencies charge for Google Ads management

These are the pricing models you’ll come across, with typical UK ranges:

  • Fixed monthly fee: the most common model for small businesses. Freelancers often charge around £250–£750 a month; agencies typically £500–£2,000+, depending on the number of campaigns and how much reporting you need.
  • Percentage of ad spend: usually 10–20% of your monthly spend, often with a minimum fee. Common for larger budgets.
  • Hybrid: a base fee plus a percentage above a certain spend level.
  • Set-up fee: a one-off charge (often £0–£1,000) for research, account structure, tracking and ad copy.
  • Performance-based: a fee per lead or sale. It sounds attractive but is rare, because it depends on things outside the agency’s control, such as your pricing and how quickly you follow up leads.

What should be included in the management fee?

Whatever you pay, you should get:

  • Keyword and competitor research
  • Campaign structure, ad copy and ad extensions
  • Conversion tracking set up and tested, so every form, call and WhatsApp enquiry is counted
  • Regular search-term reviews and negative keywords to cut wasted spend
  • Bid and budget optimisation
  • Landing page recommendations
  • A clear monthly report focused on leads and cost per lead, not just clicks
  • Full ownership of your Google Ads account, so you keep your data if you ever leave

Red flags to watch for

  • The agency owns the ad account, not you.
  • Long contracts (12 months or more) with no break clause.
  • Reports that only show impressions and clicks, never leads or sales.
  • No conversion tracking in place after the first month.
  • “Guaranteed first position” promises. Nobody can guarantee that.

Example budget for a small UK business

Item Monthly cost
Ad spend (paid to Google) £1,500
Management fee £500
Total £2,000
At £3 per click and a 5% conversion rate ≈ 25 leads at ≈ £80 each (including management)

The figures above are an illustration only. Your real numbers depend on your industry, location, website and offer.

Frequently asked questions

Can I run Google Ads with a small budget?

Yes. You can start with a few hundred pounds a month if you target a tight local area and a handful of high-intent keywords. You’ll learn more slowly, so keep the campaign focused.

How long before Google Ads works?

Ads can bring enquiries from day one, but expect four to eight weeks of optimisation before costs settle at a good level.

Is it cheaper to do it myself?

You save the management fee, but most self-managed accounts waste a significant share of their budget on irrelevant searches. See our guide on hiring a PPC agency vs running Google Ads in-house.

Want an exact figure for your business? Ask us for a free audit of your account and a quote tailored to your goals, or read more about our Google Ads management.

Want to know where your ad budget is going?

Get a free Google Ads audit. We’ll show you wasted spend, missed opportunities and a realistic cost per lead for your business. No obligation.

Get my free Google Ads audit  or WhatsApp us on +44 7833 822167

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