Hi there,
Thanks for reaching out about getting started with Google Ads for your local business. Happy to give you some initial thoughts and guidance based on what you've shared.
Why the CPC Variance? It's the Auction Dynamic
You've noticed a big difference between the estimated CPCs Google gives and what you're actually paying, right? That's totally normal, tbh.
Those estimates are just averages. The actual price you pay for a click is decided in a live auction every single time someone searches for one of your keywords. Loads of things influence this auction in real-time: who else is bidding at that exact moment, their bids, your Quality Score for that specific keyword (how relevant your ad copy, the keyword itself, and your landing page are to that search), the time of day, the person's device, and even their specific location within your 20km radius. All these variables mean the estimate will almost never match the live cost exactly.
The Challenge with a Small Budget
Now, the biggest thing impacting your current average CPC of €4.95 and why you're seeing such high costs per click is almost certainly that €5/day budget.
Think about it: if a click costs nearly €5, you're literally only getting one, maybe two clicks a day. The "Maximize Clicks" bidding strategy is trying to get you clicks, but with such a tiny budget and so little data coming in daily, it has very little room to learn or optimise. It might be bidding aggressively just to spend the daily budget on the first click it can get, which happens to be an expensive one. It's incredibly difficult for the system (or you!) to see patterns, test different times of day, or find cheaper clicks when you're only getting one data point a day.
You need a certain volume of clicks and impressions for the algorithm to even begin understanding who clicks, when, and at what cost, and to start finding more efficient ways to spend your money. My opinion is €5/day is just not enough to get off the ground and collect meaningful data. Its alot like trying to learn how to drive taking just one corner per day.
What To Do Next
To start seeing reliable performance and give your campaign a chance to work, you'll need to increase that budget significantly. How much depends on the costs in your area and how many leads you need, but as a rule of thumb, we often suggest a starting ad spend of €1k-€2k a month for local service businesses, like the HVAC client we're working with who's seeing costs around $60/lead in a competitive spot. This is just to get enough data to start with.
Once you have a sufficient budget allowing for maybe 5-10+ clicks a day consistently, then you can start monitoring the metrics properly. Focus on improving your Quality Score – make sure your ad copy is super relevant to the keywords, and that the landing page people click through to directly addresses their needs based on that search query.
Here's an overview of the first steps I'd recommend taking:
| Action | Why |
|---|---|
| Increase Daily/Monthly Budget | Essential for collecting enough data for optimization and reliable performance tracking. |
| Improve Ad Relevance (Quality Score) | Lower your cost per click and improve ad position by making keywords, ads, and landing pages highly relevant. |
| Give Campaign Time | Allow the platform to learn and optimize with sufficient data over a few weeks or months. |
Consider Giving It More Time (with a Realistic Budget)
Even with a decent budget, online advertising, especially search ads, can take some time to really dial in. You need a few weeks or months to gather enough data to make informed decisions about what keywords, ads, and targeting work best. Don't expect instant profitability, especially for local services where people might be researching for a while before contacting someone. The €5/day isn't giving it any time or chance.
Making Google Ads work effectively, especially for a local business wanting to stand out in a competitive market, requires ongoing attention, testing, and strategic adjustments. It can feel like a steep learning curve to master campaign structure, bidding, keyword refinement, and ad copy testing while also ensuring your website converts the traffic you send.
This is often why businesses consider working with experts who have experience navigating these platforms and have seen what works in similar situations. We've helped numerous businesses get their ads generating leads and revenue. If you'd like to discuss your specific situation in more detail and explore how we might be able to accelerate your results, we're happy to offer a free consultation.
Regards,
Team @ Lukas Holschuh
