Skip to content
THE STARTING POINT
Build a budget from your own unit economics, estimated click costs, lead quality, and capacity. Use scenarios rather than a supposed universal San Jose budget. The calculator below shows how assumptions change the possible outcome; it does not forecast performance.
Define the customer worth acquiring
Start with the contribution from a typical customer after direct delivery costs, then decide how much you can afford to spend acquiring one. Revenue alone can make an expensive campaign look healthy. Keep repeat business conservative unless you have evidence for it.
Include management, creative, and landing-page costs when evaluating the overall program. The calculator isolates media spend so the arithmetic is clear; it is not a full profitability model.
Work backward through the funnel
Estimate clicks from spend divided by cost per click. Estimate inquiries from clicks multiplied by the inquiry rate, then customers from inquiries multiplied by the close rate. Each assumption can be wrong, so use more than one scenario.
For illustration only, $1,000 at $5 per click produces 200 clicks. A 5% inquiry rate gives 10 inquiries; a 20% close rate gives two customers. Those values are invented planning inputs, not San Jose benchmarks or promised results.
Constrain geography and service scope
A San Jose service business should advertise where it can actually deliver. Separate distinct services when their economics and customer needs differ. Broad reach is not useful if the inquiries are outside your service boundaries.
Use your account history and current planning tools to refine assumptions. Google explains that the auction considers more than the bid, so a budget increase alone cannot solve a weak offer or irrelevant destination.
Reserve capacity to learn
Set a review point and a maximum commitment you can sustain. Do not spend money required for essential operations on an assumption that ads must produce immediate sales. Start with a focused offer and reliable follow-up.
Track qualified inquiries separately from every form submission. If leads arrive but are unsuitable, investigate the promise, targeting, and qualification before increasing spend. If they are suitable but not contacted, fix that process first.
Revise with actual evidence
Replace the sample inputs with observed figures as data accumulates. Small samples can produce unstable rates; record the number of clicks and inquiries behind each percentage.
Use the calculator to understand sensitivity, then compare the model with actual customer outcomes. A scenario is useful when it exposes what must be true for a campaign to make sense—not when it gives a precise-looking number without evidence.
Stress-test the budget
Using the calculator's illustrative defaults, double the click cost while keeping the other inputs unchanged. Clicks and modeled customers fall by half, and media acquisition cost doubles. Then restore click cost and halve the inquiry rate; the same acquisition-cost effect appears.
This shows why the landing experience matters alongside the auction. The model cannot tell you which assumption is realistic, and it omits capacity limits and sales-cycle timing. Use it to identify which unknowns deserve research before committing money.
DECISION FRAMEWORK
Make the comparison clear.
| Consideration | Focus | Action |
|---|---|---|
| Media spend / CPC | Estimated clicks | Depends on actual auction costs |
| Clicks × inquiry rate | Estimated inquiries | Requires a working destination |
| Inquiries × close rate | Estimated customers | Depends on quality and sales |
| Spend / customers | Media acquisition cost | Excludes fees and delivery costs |
INTERACTIVE / SCENARIO PLANNER
Change the assumptions.
Illustrative inputs only. No forecast or local benchmark. Media costs exclude management, creative, and delivery costs.
PUT IT TO WORK
Your working checklist.
Check each item as you prepare. Download the worksheet to add notes, owners, and deadlines. Entries on this page are temporary.
0 of 6 completed
COMMON QUESTIONS
A few details worth clarifying.
What is the minimum budget?
There is no universal business-specific minimum that guarantees a useful result. Scope the test around demand, costs, and your ability to learn.
Are these local averages?
No. Every default calculator value is illustrative and editable.
Further reading
Google Ads: About Ad Rank ↗External references support platform or policy details. The planning frameworks and hypothetical examples are Adnetix editorial guidance, not market benchmarks.
FROM PLANNING TO EXECUTION
Bring us the problem.
We’ll help define the work.
Explore paid advertising services or learn how we serve San Jose.
Talk about your project ↗