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Google Ads budget planning for first-time advertisers

The short answer
Budget from your own industry’s cost per click rather than a round number, treat the first two to four weeks as a data-gathering phase, and keep Search, Shopping and Performance Max budgets separate so you can tell which is working. Without conversion tracking you are optimising toward clicks, not leads.

M. Rodrigues

Head of Search

6 min

Budget from your own industry’s cost per click rather than a round number, treat the first two to four weeks as a data-gathering phase, and keep Search, Shopping and Performance Max budgets separate so you can tell which is working. Without conversion tracking you are optimising toward clicks, not leads.

Start with your industry's cost per click

Cost per click varies enormously by industry — a few rupees for some local services, much higher for competitive B2B or legal keywords. Research your specific category before setting a number, rather than picking a round figure that sounds reasonable.

Budget for learning, not just clicks

Your first two to four weeks of spend should be treated as a data-gathering phase. Google's algorithm needs conversion data before it can optimise delivery, and you'll likely adjust keywords and targeting once you see what's actually converting.

Separate Search, Shopping and Performance Max budgets

Each campaign type behaves differently. Mixing budgets across all three from day one makes it hard to tell which is actually driving results. Start with Search if you're targeting specific buyer intent, and add other campaign types once you have a baseline.

Don't skip conversion tracking

Without proper conversion tracking, you're optimising toward clicks, not leads — a guaranteed way to spend more per actual customer than necessary.

A reasonable starting range

For most Delhi NCR small and mid-sized businesses, a modest starting monthly budget is enough to gather meaningful data within the first month, before scaling based on what's working.

Frequently asked

How do we apply this in our own business?

Start by documenting your current baseline before changing anything. Most of the value in this approach comes from being able to prove what changed and why.

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Apply this to your own situation

We will work out which part of this is actually relevant to your constraint — and which part is not.