Google Ads · Meta Ads · Budget
How much to spend on Google Ads and Meta Ads per month: a guide for local businesses
There's no magic number. There's a simple calculation any business owner can do in ten minutes, and a few minimums below which ads don't have room to work.
In this article
Quick answer
For a local business, a good starting point is €300 to €500 a month of ad spend on a single platform, or €500 to €1,200 for Google Ads and Meta Ads together. Management is paid separately. The right figure for you comes from one calculation: what a customer is worth, how much you are willing to pay to win one, and how many new customers you want each month.
It is the first question almost every client asks us, and "it depends" helps nobody. It does depend, but on things you can measure: the value of each customer, the cost of a click in your area and how many more people you can actually serve.
In this guide we explain which costs go into the calculation, how to reach your number in three steps and from what point ads start to have enough data to learn.
Part 1
The two costs people often mix up
When someone says "I spend €500 on ads", they may mean two different things. It helps to separate them from the start.
01Ad spend
This is the money that goes directly to Google and Meta, charged to your card. There is no required minimum: in Google Ads you set an average daily budget and, on busier days, the campaign can spend up to double, but by the end of the month it never goes above 30.4 times that amount. Meta works in a similar way, with a daily or lifetime budget.
02Management
This is the work of whoever builds the campaigns, chooses the audiences, writes the ads, measures results and adjusts every week. You can do it yourself, hire a freelancer or an agency. At Kune, management costs €400, €700 or €1,100 a month depending on the plan, plus a one off setup from €150. Ad spend is always separate and goes from your card straight to the platforms.
Part 2
How to work out your budget in 3 steps
Grab a piece of paper and use your own numbers. Our examples are only there to show the calculation.
1What a new customer is worth
Not the value of the first purchase, but what that customer spends with you over a year. A couple who has dinner for €50 and comes back three times is worth €150. A new patient at a dental clinic can be worth €600 across the first visit and treatments.
2How much you are willing to pay to win one
Choose a percentage of that value you are happy to invest in advertising. For many local businesses, 10% to 20% is reasonable. At 10% of €150, the restaurant can pay up to €15 per new customer.
3How many new customers you want each month
Multiply that number by the figure from step 2. That is your starting monthly budget. Also check you have room to serve them: there's no point paying for 40 bookings if the dining room can only take 20 more.
| Business | Customer value | Willing to invest | Per new customer | Customers per month | Budget per month |
|---|---|---|---|---|---|
| Restaurant | €150 | 10% | €15 | 40 | €600 |
| Dental clinic | €600 | 15% | €90 | 8 | €720 |
| Hair salon | €300 | 10% | €30 | 15 | €450 |
These are examples. Replace them with your own figures.
Then check the figure against reality. In Google's Keyword Planner you can see an estimate of what a click costs for the searches that matter to you in your area. If a click costs €1.50 and 1 in 10 visits asks for a booking, each enquiry costs €15. If that is below what you worked out in step 2, the numbers add up.
Part 3
The minimums below which results are hard to get
The platforms let you start with a few euros a day. But being able to advertise is not the same as giving the algorithm enough data to find customers.
Sources: Meta Business Help Center and Google Ads Help.
On Meta, an ad set exits the learning phase after about 50 results in a week. With €5 a day and a sales objective that rarely happens, and results stay unstable. With a small budget, it is better to put everything into one ad set and optimise for a more frequent action, such as WhatsApp messages.
On Google Ads, a tight budget makes the campaign disappear halfway through the day. It is better to cover a few searches, a small area around the business and the hours when customers decide than to try to be everywhere with little money.
- Under €300 a month: pick one platform and one goal.
- Between €500 and €1,200 a month: combining Google Ads and Meta Ads starts to make sense.
- Above €1,200 a month: there is room to test audiences, messages and creatives in parallel.
Part 4
Google Ads or Meta Ads: where to start?
The short answer: start where your customers are already searching.
Google Ads first when people search for what you sell: dentist, plumber, restaurant near me, maths tutor. Searchers already have the need and are just choosing who to call. Add a complete Google Business Profile and you show up on the map too.
Meta Ads first when you need to create desire: a new brunch, a clothing shop, an event, a pilates studio opening in the neighbourhood. On Instagram and Facebook people weren't looking, but they can become interested if the ad is good and you are nearby.
For most local businesses, the most effective mix is Google for people searching right now and Meta to stay top of mind for people who live or work nearby.
Part 5
How long until you see results
The first two to four weeks are for the platforms to learn. It is normal for the cost per enquiry to start higher and come down later.
- Weeks 1 to 4: data collection. Avoid changing everything every couple of days, because big edits restart learning.
- Months 2 and 3: with real data, cut what doesn't work and strengthen what brings enquiries.
- From month 3: you can judge safely and decide whether to raise, keep or lower the budget.
And measure enquiries, bookings and sales, not clicks. A campaign with cheap clicks that bring no messages is spending money, not investing it.
Summary: your budget in one line
Monthly budget = new customers you want × what you are willing to pay for each one.
- Work out what a customer is worth. What they spend with you over a year, not just on the first purchase.
- Choose how much you will invest. 10% to 20% of that value is a good starting point for local businesses.
- Check it with real data. Look at the cost per click in your area and review the numbers after 60 to 90 days.
Frequently asked questions
How much does Google Ads cost per month?
Google has no minimum: you only pay for clicks. In practice, for a local business in Lisbon, starting with €300 to €500 a month on one platform is usually enough to get data and regular enquiries. Add management on top if you are not doing it yourself.
What is the minimum budget to advertise on Instagram and Facebook?
Meta lets you start with a few euros a day. The catch is that, for ads to stabilise, each ad set needs around 50 results a week. With very small budgets, optimise for messages or WhatsApp clicks, which happen more often than sales.
Does the ad budget include agency management?
No. Ad spend is paid directly to Google and Meta, on your card. Management is what you pay whoever builds and optimises the campaigns. At Kune, management ranges from €400 to €1,100 a month and ad spend is always separate.
Is it worth spending only €100 a month on ads?
It can work to test an offer or promote an event, but it is rarely enough for an enquiry campaign with stable results. With that amount, focus everything on one platform, a small area and a single goal.
When should I increase my budget?
When the cost per new customer is below the limit you set and you have room to serve more people. Increase gradually, around 20% at a time, because large and frequent changes can put your ads back into learning.
Sources: Google Ads Help, average daily budget · Meta Business Help Center, learning phase · Google Keyword Planner
