Startup Marketing Budget Tips: CPA, Keywords & Google Local Ads

What Should Startups Actually Budget for Marketing?

When you're just getting started, every penny counts. But just like we said in our blog on why small businesses fail without a proper marketing budget – marketing is not a luxury. It’s essential. If you’re a startup, the question isn’t should you invest in marketing – it’s how you allocate your budget wisely.

One of the smartest moves you can make is understanding the real cost of getting a customer. That's your Cost Per Acquisition (CPA) – and it should be one of your key budget lines.

Why CPA Matters for Startups

CPA is your canary in the coal mine. If it's too high, you're burning through cash. If it's too low, you might not be doing enough to reach your audience.

Let’s say you spend £500 on a campaign and land 10 new clients – your CPA is £50. But that number only makes sense if you know what each customer is worth to your business. If your service nets you £300 per client? Great. If it’s £40? You’ve got a problem.

So before you even run ads, do the maths. Know what you can afford to spend to gain a customer and work backwards from there.

Keyword Research Isn’t Optional

This isn’t just about ranking on Google – it’s about targeting the right audience with the right message. Invest in proper keyword research before you blow the budget on ads that aren’t converting.

Tools like:

• SEMrush
• Google Keyword Planner
• Ubersuggest

…can help you figure out where your audience is searching and what they're searching for.

Don’t fall into the trap of chasing high-volume keywords if they’re not relevant. You’ll end up paying more, for less. Local intent and long-tail keywords are often cheaper and more likely to convert.

Know Your Audience (Like, Really Know Them)

It’s not just what people search for – it’s who is doing the searching.

If you're targeting homeowners in Warwickshire, your ad copy, landing pages, and keywords need to reflect that. Age range, income level, habits, location – every bit of this matters.

The more dialled in your audience understanding, the less you’ll spend on trial-and-error. It makes every click count.

Why Google Local Ads Deserve Your Attention

If your business qualifies for Google Local Services Ads, this is a game changer.

These ads show up right at the top of the search results – even above standard PPC ads – and they’re designed for local service businesses like:

• Plumbers
• Electricians
• Cleaners
• Locksmiths
• And more

You only pay per lead, not per click. That makes it way easier to calculate your CPA.

And here’s the kicker – if your business gets the Google Guaranteed badge, you’re instantly more trustworthy in the eyes of potential customers. It means Google has verified you, and if a customer isn’t satisfied, they can get a refund from Google. That peace of mind is powerful.

So, What Should You Budget?

Here’s a rough idea of what to plan for, if you’re starting from scratch:

• Keyword research & strategy – £250–£500 (once-off or quarterly)
• Google Ads (search, display, local) – £500–£2,000/month depending on market
• Landing page development – £300–£1,000 depending on complexity
• Ongoing optimisation (CRO & A/B testing) – £200–£600/month
• Google Guaranteed certification – Free to apply, but background checks & insurance are required

Every business is different – but the big takeaway? Start with the numbers. Know your CPA, research your keywords, understand your audience, and use the tools Google gives you to your advantage.

Final Word

Startups that thrive don’t just throw money at ads. They plan, test, measure, and scale. Marketing doesn’t have to cost the earth, but it does have to be smart.

If you’re not sure where to begin, that’s where we come in. Let’s build a strategy that works with your budget – not against it.