Guide / Google Ads worth it

Is Google Ads worth it for small business?

Yes for most UK small businesses. No for some. The honest answer depends on your category, your margin, and whether you can run it properly. Below is the framework. — Oliver Ball.

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When Google Ads is worth it

  • Your buyers actively search. Trades, professional services, ecom with category demand, B2B with intent queries. If people are searching “[service] near me” or “[product] UK”, ads work.
  • Your margin can absorb the CPC. If your average sale is £200 and your CPC is £5 with a 5% conversion rate, your CAC is £100. Margin needs to cover this.
  • You can track conversions properly. Without proper conversion tracking, you’re flying blind.
  • You need leads in 30-60 days. Ads are immediate. SEO takes months.
  • Your category has decent CPCs. If solicitor CPCs are £40 in your area but your average lead value is £200, the maths works.

When Google Ads isn’t worth it

  • Your category has no search demand. If nobody is searching for what you sell, ads have nothing to bid on. Meta Ads work better here.
  • Your margin is too thin. CPCs of £5 with 1% conversion = £500 CAC. If your sale is £100, you lose money on every customer.
  • You’re below £500/month ad budget. Smart Bidding needs data. Below £500/month there isn’t enough conversion volume to learn from.
  • Your landing page converts at 0.5%. No amount of ad optimisation fixes a bad landing page. Fix the site first via website design.
  • Your tracking is broken. Without server-side tracking and CAPI, attribution is wrong, decisions are wrong, you waste money.

Categories where Google Ads almost always works

  • Local trades: Plumbers, electricians, roofers, builders. High intent + reasonable CPCs.
  • Professional services: Solicitors, accountants, financial advisors, dentists. High CPCs but high lifetime value.
  • Ecom with category demand: Search + Shopping + Pmax. Shopify integration via Google Channel.
  • High-AOV B2B services: SaaS, consultancies, agencies. Long sales cycles but premium values.
  • Local services with urgency: Emergency plumbers, locksmiths, vets. Buyers searching now.

Categories where Google Ads is harder

  • Lifestyle / aesthetic ecom: Fashion, home decor, gifting. Browsing-driven, not search-driven. Meta usually wins.
  • Awareness-stage products: Innovative products people don’t know to search for.
  • Restricted categories: Gambling, CBD, weight loss, “miracle” products. Google’s policies restrict ads heavily.
  • Very low AOV: If you sell £5 products, CPC margins are brutal.
  • Geographically diluted: Trying to serve “UK-wide” with a single small business is harder than ranking for one city.

A simple test framework

Here’s how to test cheaply whether Google Ads will work for your business:

  • Step 1. Use Keyword Planner to check search volume for your category in your geography. Below 50 searches/month per term, demand is too thin.
  • Step 2. Check estimated CPCs. Below £1 = easy. £1-£5 = normal. £5+ = high. £15+ = very competitive.
  • Step 3. Calculate breakeven CAC. (Average order value × profit margin %) / acceptable payback period.
  • Step 4. Run a £500-£1,000 test with proper tracking. 30 days. Look at CPA, not CTR or impressions.
  • Step 5. If CPA is below your breakeven CAC, scale. If not, kill or restructure.

What kills small business Google Ads accounts

  • Broad match without negatives. Burns budget on irrelevant queries.
  • Performance Max eating brand search. Pmax campaigns cannibalise free brand traffic without exclusions.
  • Broken conversion tracking. Smart Bidding optimises against bad data = bad decisions.
  • Smart Bidding with insufficient conversion volume. Needs 30+ conversions/month minimum to work.
  • Generic landing pages. Ad says “best plumber in Manchester”, landing page says “welcome to our company”.
  • No call tracking. Phone calls from ads not attributed = wrong data, wrong decisions.

More on our approach to Google Ads.

FAQs

What’s the minimum ad budget that works?

£500/month for very low CPC categories. £1,000-£2,000/month for most service businesses. £2,000+ for ecom Shopping.

Should I do Google Ads myself?

Below £1,500/month spend, DIY is reasonable if you have 5-10 hours/week. Above that, professional management usually pays for itself.

How much does management cost?

Full guide here. Roughly £300-£3,000/month UK depending on tier.

Should I run Google Ads or SEO?

Both ideally. SEO vs Google Ads guide.

Are Meta Ads better for small business?

Different intent. Meta = browsers. Google = active searchers. Meta service page.

What’s a good ROAS for small business?

2-4x for most. 5x+ in good categories. Below 2x usually means restructuring needed.

How do I know if my account is wasting money?

Free audit — share read access and we’ll send back what’s leaking budget. Contact us.

Will my account get suspended?

Only if you violate Google’s ad policies. Properly-run accounts almost never get suspended.

“Before I met Oliver we were getting 2/3 leads a day. Their strategy led us to 10 leads a day.”

— Caroll, verified Trustpilot review

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