How Much Should a Startup Spend on Google Ads?

You've got a product that works. Customers are coming in — slowly. Someone tells you Google Ads will fix that. So you open the platform, stare at the interface, and ask the question every startup founder asks: how much should I actually spend?

The honest answer: it depends. But that's not helpful, so let's get specific.

Start with your unit economics, not a budget number

Before you pick a number, you need to know three things: what a customer is worth to you (LTV), what you can afford to pay to acquire one (target CPA), and what clicks cost in your industry. Without these, any budget is a guess.

If your average customer is worth €5,000 over their lifetime, spending €500 to acquire them is a good deal. If your product sells for €29/month and churns at 10%, spending €500 per customer is a disaster. The math comes first. Always.

The practical starting point: €1,500–€3,000/month

For most B2B startups, we recommend starting between €1,500 and €3,000 per month. Here's why that range works:

• Below €1,500, you don't get enough clicks to learn anything useful. Google's algorithm needs data to optimize, and you need data to make decisions.
• At €2,000–€3,000, you'll generate enough volume across 1-2 campaigns to see patterns within 3-4 weeks.
• Above €5,000 makes sense only after you've validated your messaging, landing pages, and conversion funnel.

Where to put the budget: high-intent keywords only

The biggest mistake startups make is spreading budget across too many campaigns. You don't need brand awareness campaigns on day one. You need to capture people who are already looking for what you sell.

Focus on bottom-of-funnel search campaigns. Target keywords that signal buying intent — things like "best [your category] for [your audience]" or "[competitor] alternative." These clicks cost more, but in our experience they convert at significantly higher rates than generic awareness terms.

Cost-per-click benchmarks by industry

Your industry determines how far your budget goes. Based on WordStream and Codedesign benchmarks for European markets, here are typical ranges:

• SaaS / Software: €2–€8 per click
• E-commerce: €0.50–€3 per click
• Professional services: €3–€12 per click
• Finance / Insurance: €5–€15 per click
• Healthcare: €2–€8 per click

At €3 per click and a 3% conversion rate, €3,000/month gets you about 1,000 clicks and 30 leads. That's enough data to optimize against. At €10 per click, the same budget gives you 300 clicks and 9 leads — tighter, but still workable if your deal size is large enough.

When to scale up

Scale when you have proof, not hope. Specifically, increase budget when:

1. Your cost-per-acquisition is below your target CPA consistently for 3+ weeks
2. Your conversion rate has stabilized (not still swinging wildly)
3. You've tested at least 3-4 ad variations and know what messaging works
4. Your landing page converts above 2–3% (industry average is around 2.5–3% for paid search traffic according to Unbounce — below that, fix the page before spending more)

When you do scale, go up 20-30% at a time. Doubling budget overnight usually tanks performance because it changes how Google's bidding algorithm behaves.

The DIY vs agency question

If you're spending under €2,000/month, managing ads yourself is reasonable — Google's interface has gotten better, and there are good resources out there. But be honest about the time cost. Most founders underestimate how many hours campaign management actually takes.

Above €3,000/month, the math usually favors an agency. We wrote a detailed comparison of agency vs in-house marketing if you want the full breakdown. In our experience, a good agency reduces cost-per-acquisition meaningfully through better keyword selection, bidding strategies, and landing page optimization — and those savings typically exceed the agency fee.

The bottom line

Start with €1,500–€3,000/month. Focus on high-intent search campaigns. Commit to 90 days. Track your cost-per-acquisition obsessively. Scale when the numbers prove it works — not before.

The startups that win at Google Ads aren't the ones with the biggest budgets. They're the ones who test methodically, cut what doesn't work fast, and double down on what does.