One of the most frequently asked questions when starting with Google Ads is: “How much budget do I need?”

The answer is not simple, as it depends on your goals, your market, and the competition.

However, there are clear guidelines and categories that can help you realistically estimate a budget.

Where do you start with determining it?

Step 1 – determine your objectives:

• Do you want to generate as much brand awareness as possible? (focus on reach and impressions)

• Do you want to achieve leads or sales? (focus on conversions and cost per acquisition)

• Do you want to stimulate repeat purchases? (focus on retention and remarketing)

Step 2 – research your market and cost per click (CPC):

• Use the Google Keyword Planner to see what an average click costs in your industry.

• Calculate how many clicks you need to achieve a realistic number of conversions.

Step 3 – establish a test budget:

• Start with a test phase of, for example, 1 to 2 months.

• This provides you with data to analyze, which you can use to scale up the budget later.

On Average, We Assume the Following:

Smaller businesses:

• Google Ads: € 500 – € 1,500 per month.

  • Focus on search campaigns with high purchase intent.

  • Possibly remarketing via Display to bring back previous visitors.

• Microsoft Ads: € 150 – € 500 per month.

  • Ideal for generating cheaper traffic (CPCs are often 30-50% lower than Google).

  • Especially interesting for B2B or older target groups (high desktop usage).

Medium-sized businesses:

• Google Ads: € 2,000 – € 6,000 per month.

  • Combine search campaigns (basic) with Shopping (if webshop).

  • Use remarketing and Display to increase visibility.

  • Possibly use Video (YouTube) for branding.

• Microsoft Ads: € 500 – € 1,500 per month.

  • Use strategically for search campaigns with good ROI.

  • Often interesting as a supplement to Google, especially for B2B.

Larger businesses:

• Google Ads: € 10,000 – € 50,000+ per month.

  • Start broader: Search, Shopping, Display, Video, and Performance Max.

  • More focus on branding in addition to conversions.

  • Extensive testing with audiences, ads, and bidding strategies.

• Microsoft Ads: € 2,000 – € 10,000+ per month.

  • Definitely use as an additional channel: often lower CPCs and interesting audience segments.

  • Suitable for gaining competitive advantage in niches.