How Much Should You Spend on Google Ads? A Canadian Small Business Guide

One of the most common questions we hear from small business owners across Canada is: how much should I actually be spending on Google Ads? It is a fair question, and the answer depends on your industry, your goals, and how competitive your market is. In this guide, we will break down how to think about your Google Ads budget so you can make informed decisions and get the most from every dollar.

There Is No One-Size-Fits-All Budget

The truth is, there is no magic number. A local plumber in Victoria, BC might see great results spending $1,000 per month, while a national e-commerce brand might need $10,000 or more. What matters is not the total spend, but the return you are getting on that investment. The key metric to focus on is your cost per acquisition (CPA): how much does it cost you to acquire one paying customer through Google Ads?

Industry Benchmarks for Google Ads in Canada

While every business is different, here are some general benchmarks for average cost per click across industries in Canada. Legal services tend to be the most expensive, with CPCs ranging from $5 to $15 or more for competitive keywords. Real estate typically sees CPCs between $1.50 and $5.00. E-commerce varies widely but often falls in the $0.50 to $3.00 range. Healthcare and dental services usually run between $2.00 and $8.00 per click.

These are rough averages. Your actual costs will depend on your specific keywords, geographic targeting, ad quality, and competition.

Start Small, Then Scale What Works

Our recommendation for most small businesses just starting with Google Ads is to begin with a budget of $1,000 to $2,000 per month. This gives you enough data to identify which keywords, ads, and landing pages are performing well. After the first 30 to 60 days, you will have conversion data that tells you exactly what is working. From there, you can confidently scale your budget toward the campaigns generating real results and pause the ones that are not.

Do Not Forget About Management Costs

Your ad spend is only part of the equation. You also need to factor in the cost of managing your campaigns, whether that is your own time or the fees you pay a PPC agency. A well-managed campaign will almost always outperform a set-it-and-forget-it approach, because Google Ads requires ongoing optimization: adjusting bids, refining keywords, testing ad copy, and improving landing pages.

The Bottom Line

The right Google Ads budget is the one that generates a positive return on investment for your business. Start with what you can comfortably afford, gather data, and then make decisions based on real performance metrics. If you are unsure where to start or want a professional review of your current campaigns, PPC Sorted offers free consultations to help you find the right strategy for your budget.