How Much Should I Spend On Google Ads (PPC) in 2025?

How Much Should I Spend On Google Ads (PPC) in 2025?

“How much should I spend on Google Ads?” It’s one of the most common and important questions business owners ask and it’s a smart one. Budgeting effectively for Google Ads is key to making the most of your advertising investment. 

Whether you're a new business trying to break into the market or an established brand looking to scale, you want to know two things: Can I afford this? and Will I see a return? The good news is that Google Ads is highly scalable and works with a wide range of budgets. But the honest answer is: it depends.

In 2025, the average Cost Per Click (CPC) across industries in the UK and Ireland is approximately €4.80, but that figure is only a starting point. Your actual CPC can vary significantly based on your industry, competition, target audience, and how well your campaigns are structured. 

For example, a solar installation company might pay €4.70–€8.20 per click due to high competition and the high value of each lead, while a local clothing retailer could pay under €2.35. That’s why understanding what influences your advertising costs and tailoring your budget based on lead value, competition, and goals is far more effective than relying on a one-size-fits-all number.

What Influences Google Ads Pricing?

Several core factors influence how much you’ll spend on Google Ads, and understanding them will help you control your costs and maximise your return.

Industry

The biggest pricing variable is your industry. Highly competitive industries like legal services, insurance, or financial consulting often have higher CPCs because many advertisers are bidding for the same limited keywords. A personal injury lawyer in Dublin, for example, may be competing with a dozen other firms for high-intent keywords, driving CPCs up to €11.70 or more. 

On the other hand, a local electrician may face far less competition and enjoy significantly lower CPCs especially when targeting specific service areas with long-tail keywords like “24-hour electrician in Galway.”

Customer Lifecycle

How long it takes a customer to convert after seeing your ad also affects how much you’ll need to spend. Home services businesses often deal with medium-length buying cycles longer than ecommerce but shorter than B2B. For example, someone searching for a roofing contractor may take a few days to get quotes and check reviews before committing. 

In contrast, someone buying a phone charger online may convert in minutes. Longer buying cycles mean you need to stay visible throughout the decision-making process requiring retargeting ads, brand awareness campaigns, and increased touchpoints.

Quality Score & Relevance

Google rewards relevance, your Quality Score based on click-through rate (CTR), keyword relevance, and landing page experience directly affects how much you pay. High-Quality Scores (8–10) can reduce your CPC by up to 50%, allowing you to compete more effectively with a lower budget. 

In contrast, low-Quality Scores can inflate your costs and hurt your ad placement. Investing in clear, compelling ad copy, strong calls to action (CTAs), and high-converting landing pages isn’t just good UX, it's good economics.

Typical Google Ads Benchmarks in 2025

Here’s a breakdown of average CPC ranges by industry based on current data and expert projections:

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Image credits: wordstream.com 

These ranges are averages; real costs depend on Google Keyword Planner choice, bidding strategy, competition, and the quality of your campaigns. For home services, targeting specific suburbs, towns, or even postcodes can greatly reduce costs and improve results.

Budget Example: Home Services Campaign

To make Google Ads budgeting more practical for home service providers, let’s look at a typical example. Imagine a plumbing business where each new customer generates an average job value of €290, and the website converts at a 5% rate (1 in 20 visitors becomes a lead). The business wants to maintain a 3:1 Return on Ad Spend (ROAS), and the average Cost Per Click (CPC) in their market is €2.90.

• To generate 100 leads, the business would need 2,000 clicks (100 ÷ 0.05).
  
  
• At €2.90 per click, that equals €5,800 in ad spend.
  
  
• To hit a 3:1 ROAS, the business would aim for €17,400 in revenue from those 100 jobs.

This example shows why knowing your CPC, conversion rate, and customer value is essential. Even a slight increase in CPC or drop in lead conversion can significantly impact profitability. Smart budgeting isn’t about spending more—it’s about aligning your ad spend with real business outcomes.

How Much Do Small Businesses Spend?

Most small to mid-sized businesses spend between €1,200 and €5,850 per month on Google Ads, depending on campaign objectives, local competition, and sales goals. 

For home services businesses in Ireland, the sweet spot often lies between €1,200 and €2,400/month to begin with. This allows for lead generation campaigns, basic retargeting, and A/B testing of ad creative without overwhelming risk. The key is to start with a controlled test budget, measure performance over 30–60 days, and scale what works.

How Google Ads Works? CPC & Auction Basics

Google Ads operates on a real-time auction system, but unlike traditional auctions, the highest bidder doesn’t always win. Instead, Google considers both your bid and your Quality Score. The formula looks like this:

CPC = (Ad Rank of advertiser below you ÷ Your Quality Score) + €0.01

This means that even if your bid is lower than a competitor’s, you can still outrank them if your ad is more relevant. For advertisers with limited budgets like many home service providers this is great news. By improving ad quality and landing page experience, you can achieve better results at lower costs.

Advanced Budgeting Tips

To stretch your budget and maximise performance, follow these best practices:

• Set realistic daily budgets and allow for daily fluctuations. Google may spend slightly more or less on a given day but will stay within your monthly limit.
  
  
• Use geo-targeting to focus ads on profitable service areas. For example, if you serve only Galway and Limerick, exclude other regions to avoid wasting spend.
  
  
• Optimise for mobile devices, especially in home services where mobile search dominates.
  
  
• Target long-tail keywords like “emergency plumber near me” instead of generic terms like “plumber,” which are more expensive and less specific.
  
  
• Use automated bidding strategies like Target CPA or Maximise Conversions once enough conversion data has been collected.
  
  
• Track everything with Google Tag Manager, Google Analytics, and conversion goals inside your Ads account.
  
  

What Else Can Affect Google Ads Costs?

Several non-obvious factors can increase or decrease your total ad spend:

• Ad scheduling: Run ads during your actual business hours or when leads are most likely to convert.
  
  
• Location targeting: Invest more in locations that historically convert better.
  
  
• Device targeting: You may find that mobile clicks convert better for plumbing or emergency services, while desktop works better for legal consultations or quotes.
  
  
• Landing page speed and UX: A fast, user-friendly page can drastically boost conversions and lower your CPA.
  
  
• Management fees: If you hire an agency or freelancer to manage your campaigns, factor in their service costs—but also the ROI they help you unlock.
  
  

Ready to Grow Your Home Services Business in Ireland?

If you're running a home services business in Ireland whether you're a plumber, roofer, landscaper, electrician, or pest control expert you already know how competitive local search has become. Potential customers are searching Google for urgent solutions and reliable professionals every day. 

At Social Gravity, we specialise in crafting high-converting Google Ads strategies tailored specifically for Irish service-based businesses. We focus on your service area, set realistic budgets, and use proven techniques to reduce CPCs and increase lead volume. Whether you're spending €500 or €5,000 per month, we’ll help you make every euro count. 

Book your free consultation today and start turning searches into bookings.