8 Google Ads Budget Questions

Curious about how much to spend on Google Ads or what an agency should charge? Below are the most common budget and pricing questions small businesses ask — with honest, transparent answers from Webaam. All of our Google Ads management services are month-to-month with no long-term contracts or hidden fees.

How Much Should I Spend on Google Ads per Month for a Small Business?

Short answer: Most small businesses start between $500 and $3,000 per month, depending on their goals, industry, and competition. Webaam helps determine the right starting point and scales it as performance improves. All services are month-to-month with no long-term contracts.

Let’s talk about how we look at this: A small business can spend different amounts — it could be $500 a month on the low end, $1,500, or even $3,000+. The right amount depends on a few key things: cost per click, geographic area, and how long you want your ads running. If your clicks cost $1, that budget will stretch a lot further than if they cost $15. Likewise, a small service area will make your budget last longer than targeting an entire metro region.

An agency like Webaam will work with you to understand your goals first, then recommend a smart starting budget. As results come in — more calls, more leads, more traffic — you’ll feel comfortable increasing that budget. So while $500–$1,500 might be your starting point, some accounts eventually grow to $10,000+ because performance supports it. The goal is always to help you spend confidently, not just spend more.

Google Ads Agency Fees: Flat vs. Percentage of Ad Spend

Short answer: Flat fees provide predictable billing, while percentage-based pricing ties the agency’s compensation to your performance. At Webaam, we start at $200/month for smaller accounts and move to 10% of ad spend once budgets exceed $2,000. All accounts are month-to-month with no long-term contracts.

Here’s how we look at it: When comparing flat fees versus percentage of ad spend, it’s all about incentives. A flat fee stays the same whether your account performs well or not. A percentage model motivates your agency to make your campaigns better — because as your results grow and you feel comfortable spending more, the agency benefits too.

At Webaam, our model is simple: a $200 flat starting rate for any account, regardless of size. Once your ad spend passes $2,000 per month, the management cost switches to 10% of ad spend. We like this structure because it gives you a low barrier to entry and rewards success over time. Our hope is that your account performs well enough that you’ll feel confident raising your spend from $2,000 to $3,000, $4,000, or $5,000 — all without being locked into any contract.

Does Hiring a Google Ads Agency Save Money on Ad Spend?

Short answer: No, hiring a Google Ads agency doesn’t directly save you money on ad spend. Your budget is completely up to you — an agency’s job is to make sure you get the most value from it.

Here’s why: Ad spend is whatever you choose to set it at. Whether you spend $500 or $5,000, that’s your call. What a good agency does is maximize the return on that spend. We analyze your account and look at all the moving parts — conversion tracking, cost per click, ad position, geography, and audience targeting — to make sure every dollar works as efficiently as possible.

At Webaam, we help clients measure what matters. Maybe you’re bidding too high for top positions and paying more than necessary, or maybe there are services or areas where your ads convert much better. We’ll identify those opportunities and optimize them. The goal isn’t to spend less — it’s to get more out of what you’re already spending, and to give you the confidence to scale once you see results. And since everything we do is month-to-month, you always have control over that budget.

What Is the Minimum Monthly Ad Spend to Work with Webaam?

Short answer: There’s no strict minimum. We recommend starting with at least $500/month in ad spend, plus our $200/month management fee. Everything is month-to-month with no long-term contracts.

Here’s how we approach it: We don’t require a set minimum because every business and market is different. However, based on average cost-per-click data, $500/month is usually the lowest reasonable amount to generate consistent activity. Our management fee starts at $200, so your total starting cost would typically be around $700/month.

That said, if you want to start smaller, that’s fine — we can still manage a test budget (for example, $300 in ad spend + $200 management). The key is that the management fee stays consistent, but you control how much you want to allocate toward ads. And because we operate month-to-month, you can adjust or increase that budget whenever you’re ready.

How Will My Google Ads Budget Be Allocated Across Campaigns?

Short answer: Webaam allocates your budget based on your goals, service types, and target areas. We adjust spending monthly based on what performs best.

Here’s how we think about it: When we manage your Google Ads budget, we look at what matters most to your business. Maybe you want to focus on certain cities, or maybe you have specific services or products that drive more profit. We can split campaigns by geographic area or by service category — or even combine both, like promoting a premium service in a specific region that converts best.

Over time, as results come in, we optimize further. If certain areas or services outperform others, we’ll shift more of the budget there. It’s an ongoing, data-driven process that ensures every dollar is spent where it brings the highest return. And we always keep you in the loop so our strategy aligns with your business goals.

Are There Any Hidden Costs When Hiring a Google Ads Firm?

Short answer: No — there should never be hidden costs. At Webaam, everything is transparent: $200/month or 10% of ad spend once above $2,000. All accounts are month-to-month with no long-term contracts.

Here’s our philosophy: If an agency hides fees, that’s a red flag. You should always know exactly what you’re paying for. At Webaam, we make pricing simple: our management starts at $200 per month and shifts to 10% of ad spend once budgets exceed $2,000. There are no onboarding charges, no hidden extras, and no commitments beyond the current month. Transparency is key to building trust — you’ll always know where every dollar goes.

How Much Does It Cost to Set Up a New Google Ads Account?

Short answer: Webaam doesn’t charge any setup fee. You simply pay our $200/month management fee or 10% of ad spend, whichever is higher. Setup, campaign creation, and tracking are included. Service is month-to-month.

Here’s how it works: When you start with Webaam, we handle everything from creating your Google Ads account to writing ads, setting up conversion tracking, and researching keywords. We don’t believe in charging an upfront setup cost — instead, that work is covered within your first month’s management fee. It keeps things simple and lets us focus immediately on performance instead of paperwork.

Can I Scale My Google Ads Budget with the Right Agency?

Short answer: Yes — Webaam helps you scale your Google Ads budget responsibly based on results. Once ad spend passes $2,000, management shifts to 10% of ad spend. You can increase or decrease your budget anytime since everything is month-to-month.

Here’s what that means: We actually love when clients scale because it means the account is performing. As your results improve — more phone calls, lead forms, or sales — you’ll naturally want to spend more. And because our pricing is tied to ad spend, our success grows right alongside yours. We’ll help you identify when it’s the right time to raise your budget and ensure each increase delivers value.

Every account at Webaam is flexible. You can increase, reduce, or pause at any time. We encourage gradual scaling so you feel confident with each step. No contracts, no penalties — just data-driven growth.