- Search demand caps Google spend. You can’t buy searches that don’t happen.
- Break-even ad spend is gross profit from expected jobs minus other marketing fees.
- Budget well under break-even while you learn your real numbers.
- Keep emergency and project keywords in separate campaigns.
Search demand sets the first ceiling
Google Ads shows your ad when someone searches. If only so many homeowners in your service area search for a whole-house repipe or a kitchen remodel each month, there’s only so much budget to spend on it.
Google’s Keyword Planner gives rough search and cost estimates for your area. Treat them as a starting range. Once the campaign runs, your own impression share will tell you whether you’re already reaching most of the searches or have room to grow.
Your jobs set the second ceiling
Break-even ad spend is the most you could spend and still cover your other marketing costs from the gross profit of the jobs it brings. It’s a ceiling, not a target.
- Gross profit = expected signed jobs × average project value × gross margin
- Break-even ad spend = gross profit − other monthly marketing fees
- Per job = break-even ad spend ÷ expected signed jobs
Worked example (example numbers, not a benchmark)
You expect 4 signed jobs a month from Google at an average of $20,000 and a 35% gross margin. That’s $28,000 in gross profit. Take out $3,000 in other marketing fees and the break-even ad spend is $25,000 a month, or $6,250 per signed job.
Nobody should spend at break-even, because that leaves nothing for overhead or profit. The point is to know where the wall is. If local search demand only supports $4,000 a month, that’s your real ceiling, and you’re well inside the line.
Where contractor Google budgets leak
Broad keywords pull in searches for jobs you don’t do, DIY questions, and job seekers. Emergency terms bring service calls into a campaign meant for installs. Both burn budget that never reaches the searches you want.
- Separate campaigns for emergency service and planned projects
- Negative keywords for DIY, jobs, and work you don’t do
- Location settings that match your real service area
- Conversion tracking on booked estimates, not just form fills
Test, then scale
Start below what search demand and break-even allow. Run long enough for estimates to book and some to close. Raise spend on the campaigns with the lowest cost per booked estimate, and only while impression share says there’s room.
