Before choosing an ad budget, work out what your firm can afford to spend to gain a suitable client.
That number gives you a starting point. You can then test whether your ads bring the right inquiries at a cost the business can support.
The example below uses made-up figures to explain the process. These figures are not industry averages or promised results.
Choose the service you want to promote
Start with one service or type of matter. Decide which locations you can serve and what makes someone a suitable client.
Also consider how much new work your team can handle. Ads can create more pressure if nobody has time to answer inquiries.
Write down the kind of inquiry you want. This will help you judge results more clearly than counting every call or form submission.
Work out what you can spend to gain a client
Start with the money the firm expects to collect for the service. Then account for the cost of doing the work.
For example, imagine a service brings in $3,000. Providing that service costs $1,800.
That leaves $1,200 to help cover overhead and profit as well as the cost of gaining the client.
For this example, suppose the firm decides it can spend $300 to gain each client. Your own limit should reflect your actual costs and cash flow.
Be careful with fees that may take a long time to arrive. Future income won’t pay this month’s ad bill.
Work out what an inquiry can cost
Next, look at how many suitable inquiries become clients.
Suppose one out of every four suitable inquiries becomes a client. At a $300 limit per client, you could spend an average of $75 per suitable inquiry.
$300 ÷ 4 = $75
That calculation depends on one in four becoming a client. If fewer people hire the firm, the cost per client rises.
Use your own records when possible. If you don’t have records yet, treat your estimate as something the test needs to check.
Separate ad spending from other expenses
The amount you pay Google is only part of the cost. You may also pay for campaign management or changes to the page people visit after clicking an ad.
Imagine your total monthly budget is $1,500. If $300 covers those other expenses, you have $1,200 left for ads.
Under the example above, your total budget would aim to produce 20 suitable inquiries at $75 each. The ad spending alone would need to average $60 per suitable inquiry.
These are planning figures. The campaign may show that the target needs to change.
Understand the daily budget setting
Google Ads uses an average daily budget. For most campaigns, spending can reach twice that daily average on a particular day. Google also describes a monthly spending limit of 30.4 times the average daily budget (Google, n.d.).
To plan around $1,200 in monthly ad spending, divide it by 30.4. That gives an average daily budget of about $39.47.
Check the rules for your campaign type before launching. Review spending when you change the budget.
Make sure inquiries receive attention
Decide who will answer calls and follow up with forms. Give that person a clear way to record what happens.
Track whether each inquiry is suitable. Then record whether a consultation takes place and whether the person hires the firm.
Keep sensitive information in the appropriate systems. Have responsible counsel review the ads and intake process before launch.
Use the results to decide what to change
If most inquiries are unsuitable, review the audience and message. If suitable people inquire but never reach a consultation, check the follow-up process.
If consultations rarely lead to clients, examine expectations and fit.
Avoid increasing spending simply because the campaign has been running for a while. First understand whether the process works and whether the cost makes sense.
Your next step
Write down the service you want to promote and what you can afford to spend per client. Add your monthly limit and the person responsible for inquiries.
Set a review date that gives people enough time to make a decision.
You now have a budget built around your business. The test will help you see which assumptions hold up.
References
Google. (n.d.). About average daily budgets. Google Ads Help.
