How to Decide Your Google Ads Daily Budget (Without Wasting Money)

Marketingchimp
Jul 9
3 min read

Updated: Jul 10

Setting your daily budget in Google Ads can feel a bit like throwing darts in the dark. Too low and your ads barely show. Too high and you’re burning through cash with no clue what it’s doing. So how do you actually decide the right daily budget for your business?

Whether you're a small local brand or a scaling eCommerce business, this guide walks you through a smart, data-driven way to set your daily ad spend — without guesswork.

Why Your Daily Budget Matters More Than You Think

Your daily budget directly affects:

How often your ads show
The volume of clicks you can afford
How fast you hit your monthly cap
Your visibility during peak hours
Your ability to compete against bigger advertisers

It’s the lever that controls your exposure — and if you set it too low, Google might throttle your impressions before lunch.

Start With This Formula (And Adjust Based on Goals)

A good starting point is:

Target Monthly Budget ÷ 30.4 = Daily Budget

Why 30.4? That’s Google’s average month length. So if your goal is £900/month:

£900 ÷ 30.4 = ~£30/day

But that’s only part of the story. You also need to consider cost per click (CPC) and how many clicks you realistically need to drive results.

Factor In Your CPC and Conversion Rate

Let’s say:

Average CPC = £2
Daily budget = £30
That gives you ~15 clicks/day

Now ask:

What’s your website conversion rate? (e.g. 10%)
How many conversions do you need daily to be profitable?

If 1 in 10 visitors becomes a lead or sale, you’ll get around 1–2 conversions per day on a £30 budget.

If you’re in a high-CPC niche (like legal or finance), £30/day might only buy you 3–5 clicks — not ideal.

So if your:

Conversion rate is low → You need more clicks → Increase your daily budget
CPC is high → Even more reason to raise budget or optimise harder

Match Your Budget to Your Campaign Goal

Different goals require different levels of spend. Here’s a rough guide:

Campaign Type	Recommended Starting Budget
Brand awareness	£10–£30/day
Lead generation	£20–£100/day (depending on CPC)
eCommerce	£30–£200/day
Retargeting	£5–£15/day
Local services	£15–£60/day

If you’re a PPC agency in York running local campaigns for plumbers or dentists, £25–£50/day is often enough to stay visible in a competitive area.

Test Low, Scale Smart

Google Ads isn’t a set-it-and-forget-it platform. Start low, gather data, then scale.

Start with:

£10–£30/day
Target 1-2 main ad groups
Track CPC, CTR, conversions

After 1–2 weeks:

Check what’s working
Identify high-converting terms
Allocate more budget to winning areas
Reduce bids or pause underperformers

Important: Don’t judge performance after just 2 days. Let the algorithm learn, especially on smart bidding strategies.

Use Google’s Forecasting Tools (But With Caution)

Inside Google Ads → Tools & Settings → Keyword Planner → Forecast

You’ll see:

Estimated clicks
Impressions
CPC ranges based on daily budgets

Take these with a pinch of salt. They’re based on past data, not your setup. But they can help gauge whether £10/day or £100/day is realistic in your industry.

Don’t Forget About Budget Caps

Google says your daily budget can overspend by up to 2x per day, but it’ll average out over the month. This means:

£30/day = Max £60 spend on high-traffic days
Google evens it out by spending less on quiet days

Always set a monthly budget cap if you’re worried about overspend.

Avoid These Daily Budget Mistakes

Spreading too thin – Too many campaigns with £5/day each = none perform
Setting high budget without tracking – Wasted ad spend with zero conversions
Ignoring weekends or time of day – Use ad scheduling to align with demand
Forgetting to exclude low-converting locations – Cut the fat

Final Thoughts: Budget Should Follow Performance

Your Google Ads daily budget isn’t static. It should evolve with your data.

If your ROAS is good → increase daily budget
If CPL is high → refine targeting or pause low-performers
If demand shifts (e.g. seasonally) → adjust accordingly

And if you’re just starting out, start small, but don’t start cheap. £10/day may not be enough in a competitive industry — and might lead you to wrongly think “Google Ads doesn’t work.”