Resources · Google Ads

How much does Google Ads cost for a small business in Australia?

By Francis Valente, Navaro Systems · Updated 17 October 2026

Short answer: Google Ads has no minimum spend. You set a daily budget and pay when someone clicks your ad, at a price set by an auction against the other advertisers on that search. What you should spend depends on what a click costs in your industry and area, and how many enquiries you need: enquiries needed, divided by the share of clicks that enquire, times the cost of a click. Management is a separate cost, usually a percentage of ad spend or a flat monthly fee.

Key points

  • You choose the budget. Google can spend up to twice your daily budget on a busy day, but over a month it won't charge more than about 30.4 times the daily figure.
  • Cost per click varies widely by keyword, suburb and competition. Google's free Keyword Planner gives a low and high estimate for your keywords and area.
  • The number that matters is cost per enquiry, not cost per click.
  • Management fees are separate. A percentage of spend rises as you spend more; a flat fee doesn't.

What you're actually paying for

On a Search campaign you pay per click, not per view. Every time someone searches, Google runs an auction among the advertisers bidding on that search. Your position and price depend on your bid and on Google's view of how relevant your ad and landing page are to the search, so a well-matched ad can win a better spot for less.

You never pay more than your maximum bid, and usually pay less: roughly what it takes to beat the advertiser ranked just below you.

How budgets work

  • You set an average daily budget per campaign. Google can spend up to twice that on a day with more searches, and less on quiet days.
  • Across a month, Google won't charge more than about 30.4 times your daily budget, so $33 a day keeps a month near $1,000.
  • You can pause, lower or stop at any time. Google has no contract or minimum term.
  • Ad spend is billed by Google to the payment method on the account, separately from anything you pay someone to manage it.

Work backwards from the enquiries you need

  1. Decide how many enquiries a month would make it worthwhile.
  2. Estimate the share of clicks that will enquire. For a service business with a clear page and a phone number it commonly sits somewhere in the single digits to low teens of per cent. Replace the estimate with your own number as soon as tracking gives you one.
  3. Look up likely cost per click in Keyword Planner (inside Google Ads, free), which shows a low and high range for each keyword in your area.
  4. Budget = enquiries needed, divided by enquiry rate, times cost per click.

Example arithmetic, not a benchmark: 20 enquiries a month at an 8% enquiry rate needs 250 clicks. At $4 a click that's $1,000 a month of ad spend, or $50 per enquiry.

Interactive Google Ads budget calculator on this page: monthly budget divided by cost per click gives clicks, clicks times the share that enquire gives enquiries, and budget divided by enquiries gives cost per enquiry.

What management costs

Most small businesses pay someone to run the account. The common models are a percentage of ad spend (often in the 10 to 20 per cent range, usually with a minimum fee), a flat monthly fee, or a retainer bundled with other marketing.

Under a percentage model the manager earns more when you spend more, whether or not the extra spend works. A flat fee removes that pull. Navaro charges $1,000 a month flat for accounts spending up to $5,000 a month on ads, or $800 a month if Navaro built your website. No GST added, no contract, and the account stays yours.

Is there a minimum worth spending?

Google has no minimum, but there is a practical one. An account needs enough clicks each month to show what's working, or every change is a guess. As a rule of thumb, if your budget buys fewer than about 100 clicks a month, concentrate it: fewer keywords, a tighter area, or only the hours your customers search, rather than spreading it thin.

Signs you're paying too much

  • You can't see the search terms your ads were shown for.
  • Clicks are coming from outside the area you serve.
  • Conversions count page views or button clicks instead of real enquiries.
  • A Search campaign is also spending on the Display Network.
  • You don't have admin access to your own Google Ads account.

Questions people ask

Is Google Ads worth it for a small business?

It is when the people searching are ready to buy and a new customer is worth several times what it costs to win one. Work out your cost per enquiry and how many enquiries become customers before deciding. If one customer pays for a month of ads, it usually stacks up.

How much does a click cost in Australia?

There's no single figure. It depends on the keyword, the suburb, the time of day and how hard competitors bid. Keyword Planner gives a low and high range for your own keywords and area, which is the best estimate until you have your own data.

Can I set a monthly budget instead of a daily one?

Google works in average daily budgets, but it caps a month's charges at about 30.4 times the daily figure. Divide your monthly budget by 30.4 to get the daily number.

What does Navaro charge to run Google Ads?

$1,000 a month flat for accounts spending up to $5,000 a month on ads, or $800 a month if Navaro built your website. No GST added, no percentage of spend, no contract, and the account stays in your name.

Free 60-second website read at navaro.com.au, no sign-up. Or ring Francis Valente on 0426 951 399.