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How Much Should Roofing Companies Spend on Google Ads?

How Much Should Roofing Companies Spend on Google Ads? (2025 Budget Guide)

You’ve decided to start running Google Ads for your roofing company. Smart decision. But now comes the question that keeps you up at night:

“How much money should I actually spend?”

Spend too little, and you won’t get enough leads to make it worthwhile. Spend too much, and you could drain your bank account before seeing results. And unlike traditional advertising where you commit to a whole campaign upfront, Google Ads lets you spend as much or as little as you want—which somehow makes the decision even harder.

Here’s what makes budgeting for Google Ads tricky: there’s no one-size-fits-all answer. A roofing company in rural Montana has different costs than one in Dallas. A company targeting emergency repairs has different economics than one focused on high-end replacements. Your close rate, your average job value, and your profit margins all factor into what makes sense for YOUR business.

But here’s what I can give you: a framework for determining exactly how much you should spend based on your market, your goals, and your numbers.

In this guide, you’ll learn:

  • Industry benchmark budgets for different market sizes
  • How to calculate the right budget for YOUR roofing company
  • What ROI to expect at different budget levels
  • How to scale your spending as you grow
  • Common budgeting mistakes to avoid

Let’s figure out your number.


The Short Answer: Industry Benchmarks

If you want the quick version, here’s what roofing companies typically spend on Google Ads in 2025:

By Market Size

Market TypePopulationMonthly BudgetExpected Leads
Small MarketUnder 50,000$1,500-$2,5004-8 leads
Mid-Sized Market50,000-200,000$3,000-$5,00010-15 leads
Large Market200,000-500,000$5,000-$8,00015-25 leads
Major Metro500,000+$8,000-$15,000+25-50+ leads

By Company Size

Company TypeAnnual RevenueMonthly Budget% of Revenue
Solo/Small Crew$300K-$500K$1,500-$3,0003-7%
Established (2-3 crews)$500K-$1.5M$3,000-$7,0003-6%
Growing (4-6 crews)$1.5M-$3M$7,000-$12,0003-5%
Large Operation$3M+$12,000-$25,000+3-5%

These are ranges, not rules. Your actual optimal budget depends on factors we’ll discuss below.


Why “Just Tell Me a Number” Doesn’t Work

Before we go deeper, let me explain why I can’t just say “spend $5,000/month and you’ll be fine.”

Your optimal Google Ads budget depends on:

1. Your Market’s Competitiveness

  • How many other roofers are advertising?
  • What are they bidding?
  • How much search volume exists?

2. Your Customer Economics

  • What’s your average job value?
  • What’s your profit margin?
  • What’s your customer lifetime value (CLV)?

3. Your Close Rate

  • How many leads become jobs?
  • Do you respond fast?
  • Are you good at sales?

4. Your Capacity

  • Can you handle more jobs?
  • Do you need leads year-round or just in peak season?

5. Your Goals

  • Survival mode (need jobs NOW)?
  • Growth mode (scaling up crews)?
  • Maintenance mode (staying busy)?

Let’s build your budget based on these factors.


The Cost Per Click Reality: What You’ll Actually Pay

Before we can determine your budget, you need to understand what clicks cost in your market.

2025 Average CPC by Keyword Type (Roofing)

Keyword CategoryAverage CPCRange
Emergency/Urgent Keywords$35$25-$50
Roof Replacement$25$18-$35
Roof Repair$22$15-$30
Service-Specific (metal, shingle, etc.)$20$12-$28
Informational (“how much does…”)$12$8-$18
Branded (your company name)$5$3-$8

Why such a wide range?

A roofer in San Francisco bidding on “emergency roof repair” might pay $45 per click because:

  • High competition (50+ roofing companies advertising)
  • High cost of living = higher job values = companies can afford more
  • High search volume

A roofer in Boise, Idaho might pay $25 for the same keyword because:

  • Less competition (15 roofing companies advertising)
  • Lower job values
  • Less search volume

Your Market’s CPC (How to Find Out)

Option 1: Use Google Keyword Planner (Free)

  1. Go to ads.google.com
  2. Click Tools → Keyword Planner
  3. Search your keywords + your city
  4. Look at “Top of page bid (high range)”

Example search: “roof replacement Austin Texas”

  • Shows suggested bid: $28-$42
  • You’ll probably pay somewhere in that range

Option 2: Just Start Running Ads

Sometimes the fastest way to know is to start with a small budget and see what you actually pay.

Start with $50/day ($1,500/month) and check your actual CPC after one week.


The Real Question: Cost Per LEAD (Not Click)

Clicks don’t pay your bills. Leads do.

Your cost per lead (CPL) is what really matters.

How to Calculate Cost Per Lead

Formula:

Cost Per Lead = Ad Spend ÷ Number of Leads

But to get leads, we need to understand the funnel:

1000 impressions (people see your ad)
    ↓
50 clicks (5% click-through rate)
    ↓
5 leads (10% conversion rate on landing page)

In this example:

  • You paid $25 per click
  • Total cost: 50 clicks × $25 = $1,250
  • You got 5 leads
  • Cost per lead: $250

Industry Benchmark: Roofing Cost Per Lead

Lead TypeExpected CPLNotes
Emergency repair leads$200-$350Higher intent, convert fast
Roof replacement leads$250-$450Longer sales cycle
Informational/low-intent$100-$200May not be ready to buy

Why emergency leads can have LOWER CPL even though clicks cost more:

Emergency keywords have higher click costs BUT also higher conversion rates:

  • Emergency CPC: $35
  • Conversion rate: 12%
  • Clicks to get 1 lead: ~8
  • CPL: $35 × 8 = $280

Replacement keywords have lower click costs BUT lower conversion rates:

  • Replacement CPC: $25
  • Conversion rate: 7%
  • Clicks to get 1 lead: ~14
  • CPL: $25 × 14 = $350

Higher CPC doesn’t always mean higher cost per lead.


Calculating Your Ideal Budget (The Formula)

Here’s how to determine what YOU should spend:

Step 1: Know Your Customer Economics

First, answer these questions:

A. What’s your average job value?

  • Roof replacement: $______
  • Major repair: $______
  • Minor repair: $______
  • Weighted average: $______

Example:

  • 60% of jobs are replacements at $14,000
  • 30% are major repairs at $3,500
  • 10% are minor repairs at $800
  • Weighted average: (0.60 × $14,000) + (0.30 × $3,500) + (0.10 × $800) = $9,530

B. What’s your profit margin?

  • After labor, materials, overhead
  • Typical roofing margin: 35-45%
  • Your margin: ______%

Example: 40% margin on $9,530 job = $3,812 profit per job


C. What’s your close rate?

  • Out of 10 leads, how many become jobs?
  • Industry average: 25-35%
  • Your close rate: ______%

Example: You close 30% of leads = 3 out of 10 leads become jobs


Step 2: Calculate Your Allowable Cost Per Lead

Formula:

Allowable CPL = (Average Job Profit × Close Rate) ÷ Desired ROI Multiple

Example:

  • Average job profit: $3,812
  • Close rate: 30%
  • Desired ROI: 5× (you want $5 back for every $1 spent)
Allowable CPL = ($3,812 × 0.30) ÷ 5
Allowable CPL = $1,144 ÷ 5
Allowable CPL = $229

You can afford to spend up to $229 per lead and still hit your 5× ROI target.


Step 3: Determine How Many Leads You Need

Based on your capacity:

  • How many jobs can you handle per month? ______
  • Divide by your close rate to get leads needed

Example:

  • Capacity: 12 jobs/month
  • Close rate: 30%
  • Leads needed: 12 ÷ 0.30 = 40 leads/month

Step 4: Calculate Your Monthly Budget

Formula:

Monthly Budget = Leads Needed × Cost Per Lead

Example:

  • Need 40 leads/month
  • Can afford $229 per lead
  • Budget: 40 × $229 = $9,160/month

But wait—that’s your MAXIMUM profitable budget.

In reality, your actual CPL will probably be $200-$350, so your budget might be:

  • At $250 CPL: 40 leads × $250 = $10,000/month
  • At $300 CPL: 40 leads × $300 = $12,000/month

If your market’s CPL is $300 but you can only afford $229, you either:

  1. Accept fewer leads (27 leads instead of 40)
  2. Improve your close rate (35% instead of 30%)
  3. Increase your average job value
  4. Accept lower ROI

Budget Recommendations by Business Goal

Let’s get practical with different scenarios:

Scenario 1: “I’m New to Google Ads—Testing the Waters”

Your Situation:

  • Never run ads before
  • Not sure if it will work
  • Want to test without breaking the bank

Recommended Budget: $2,000-$3,000/month

What to expect:

  • 6-10 leads/month (depending on market)
  • 2-3 jobs closed (at 30% close rate)
  • Learn if Google Ads works for your business
  • Gather data to optimize

Timeline: Run for 3 months minimum before judging results


Scenario 2: “I Need Jobs NOW—Survival Mode”

Your Situation:

  • Slow season hit hard
  • Need to fill the schedule fast
  • Have crew capacity sitting idle

Recommended Budget: $5,000-$8,000/month (or more if you can afford it)

What to expect:

  • 15-25 leads/month
  • 5-8 jobs closed
  • Fast cash injection
  • Fill schedule within 2-4 weeks

Focus: Emergency and repair keywords (faster sales cycle)


Scenario 3: “I’m Growing—Want Consistent Lead Flow”

Your Situation:

  • Currently busy from referrals
  • Want predictable leads year-round
  • Planning to add another crew

Recommended Budget: $6,000-$10,000/month

What to expect:

  • 20-30 leads/month
  • 7-10 jobs closed
  • Smooth out seasonal fluctuations
  • Consistent pipeline

Focus: Mix of emergency and replacement keywords


Scenario 4: “I’m Scaling Aggressively”

Your Situation:

  • Multiple crews
  • Want to dominate the market
  • Have capital to invest in growth

Recommended Budget: $12,000-$25,000+/month

What to expect:

  • 40-80+ leads/month
  • 15-25+ jobs closed
  • Market leadership position
  • Ability to be selective with jobs

Focus: All keyword types, remarketing, display ads


Seasonal Budget Adjustments

Roofing is seasonal. Your budget should be too.

The Seasonal Reality

SeasonSearch VolumeCompetitionRecommended Strategy
Spring (March-May)HighVery HighPeak budget (140-160% of average)
Summer (June-Aug)Very HighExtremePeak budget (150-180% of average)
Fall (Sept-Nov)Medium-HighHighStandard budget (100-120%)
Winter (Dec-Feb)Low-MediumMediumReduced budget (60-80%)

Example Annual Budget Plan:

Base monthly budget: $6,000

  • January: $3,600 (60%)
  • February: $4,200 (70%)
  • March: $7,200 (120%)
  • April: $8,400 (140%)
  • May: $9,000 (150%)
  • June: $10,800 (180%)
  • July: $10,800 (180%)
  • August: $9,600 (160%)
  • September: $7,200 (120%)
  • October: $6,600 (110%)
  • November: $6,000 (100%)
  • December: $4,800 (80%)

Annual total: $88,200 (averages to $7,350/month)


Storm Season Surge

When severe weather hits your area:

During/After Storms:

  • Increase budget by 200-300% for 2-4 weeks
  • Focus on emergency keywords
  • Competition spikes but so does demand
  • Everyone needs a roofer RIGHT NOW

Example:

  • Normal budget: $5,000/month
  • Storm hits: Increase to $15,000-$20,000 for 2-3 weeks
  • Generate 50-80 emergency leads
  • Book out your crew for months

This is when roofing companies make their year.


How to Start Small and Scale

You don’t need to start with a $10,000/month budget. Here’s a smart scaling approach:

Month 1-2: Testing Phase

Budget: $2,000-$3,000/month Goal: Gather data

Focus on:

  • 2-3 highest-priority campaigns
  • 10-15 most relevant keywords
  • One landing page
  • Basic tracking setup

Measure:

  • Actual CPC in your market
  • Actual CPL
  • Which keywords convert
  • Your actual close rate

Month 3-4: Optimization Phase

Budget: $3,000-$5,000/month (increase by 50-80%) Goal: Improve efficiency

Actions:

  • Pause keywords that don’t convert
  • Increase bids on keywords that do convert
  • Add negative keywords
  • Improve landing page based on data
  • Test new ad copy

Result: CPL should decrease by 15-30%


Month 5-6: Scaling Phase

Budget: $5,000-$8,000/month (increase by 60-100%) Goal: Volume

Actions:

  • Add new keywords
  • Create new campaigns for other services
  • Launch remarketing
  • Expand to nearby service areas

Result: More leads at similar or better CPL


Month 7+: Mature Phase

Budget: $8,000+ (based on capacity and goals) Goal: Dominance

Actions:

  • Test advanced strategies
  • Expand to YouTube/Display
  • Target competitor keywords
  • Seasonal adjustments

Result: Predictable, scalable lead machine


The Daily Budget Settings

Google Ads asks you to set a “daily budget,” but here’s what you need to know:

How Daily Budgets Work

You set: $200/day
Google spends: Up to $400 on high-traffic days
But monthly total: Won’t exceed $200 × 30.4 = $6,080

Google can spend up to 2× your daily budget on any given day, but monthly total won’t exceed daily budget × 30.4.


How to Set Your Daily Budget

Formula:

Daily Budget = Monthly Budget ÷ 30.4

Examples:

  • $3,000/month = $98.68/day (set at $99/day)
  • $5,000/month = $164.47/day (set at $165/day)
  • $8,000/month = $263.16/day (set at $263/day)

Should You Set Different Daily Budgets for Each Campaign?

Yes. Allocate based on priority:

Example with $6,000/month total budget:

CampaignPriorityDaily BudgetMonthly
Emergency RepairsHigh$100/day$3,040
Roof ReplacementMedium$60/day$1,824
BrandedLow$10/day$304
Total$170/day$5,168

Leave some buffer for overage.


What ROI Should You Expect?

Let’s talk realistic return on investment at different budget levels:

The ROI Timeline

Month 1:

  • ROI: 2-3× (while learning)
  • Lots of testing, some wasted spend
  • Building data

Month 2-3:

  • ROI: 3-5× (optimizing)
  • Pausing what doesn’t work
  • Scaling what does

Month 4-6:

  • ROI: 5-8× (hitting stride)
  • Campaigns dialed in
  • Predictable results

Month 7+:

  • ROI: 6-10× (mature campaigns)
  • Efficient and optimized
  • Consistent performance

ROI by Budget Level

Monthly BudgetExpected Revenue (Month 4+)Expected ROI
$2,000$10,000-$16,0005-8×
$5,000$30,000-$45,0006-9×
$8,000$50,000-$80,0006-10×
$12,000$75,000-$120,0006-10×

Why does ROI stay similar as you scale?

Because you’re targeting more keywords (some less efficient) but also getting volume discounts (better Quality Scores, lower CPCs).


Calculating YOUR Expected ROI

Example:

Budget: $5,000/month
CPL: $300
Leads: $5,000 ÷ $300 = 17 leads
Close rate: 30%
Jobs closed: 17 × 0.30 = 5 jobs
Average job value: $12,000
Revenue: 5 × $12,000 = $60,000
ROI: $60,000 ÷ $5,000 = 12×


But what about profit?

Revenue: $60,000
Gross profit (40%): $24,000
Ad spend: $5,000
Net profit: $19,000
Profit ROI: $19,000 ÷ $5,000 = 3.8×

Still excellent.


Common Budgeting Mistakes

Mistake #1: Starting Too Small

The Problem:

  • Budget: $500/month
  • CPC: $25
  • Total clicks: 20
  • Leads: 2 (if lucky)
  • Not enough data to optimize

The Fix: Start with at least $1,500-$2,000/month minimum, or don’t start at all.


Mistake #2: Giving Up Too Soon

The Problem:

  • Spend $3,000 in first month
  • Get 8 leads, close 2 jobs
  • “This doesn’t work!”
  • Quit before optimization phase

The Fix: Commit to 3 months minimum. Month 1 is learning.


Mistake #3: Setting Unrealistic ROI Expectations

The Problem:

  • “I want 20× ROI or it’s not worth it”
  • Only bid $5 per click (never win auctions)
  • Get zero leads
  • “Google Ads doesn’t work”

The Fix: Accept that 5-8× ROI is excellent. If you want higher returns, improve your close rate or job values.


Mistake #4: Not Adjusting for Seasonality

The Problem:

  • Spend $6,000/month year-round
  • Get flooded with leads in July
  • Turn business away
  • Get only 3 leads in January
  • Crew sitting idle

The Fix: Reduce budget in slow season, increase in peak season.


Mistake #5: No Budget for Optimization

The Problem:

  • Spend entire budget on ads
  • No money left for landing page improvements
  • No money for call tracking
  • Can’t optimize, so performance stagnates

The Fix: Set aside 10-15% of your total marketing budget for tools and optimization.


Budget vs. Other Marketing Channels

How does Google Ads compare to other marketing investments?

Marketing Channel Comparison

ChannelMonthly InvestmentExpected LeadsCost Per LeadClose Rate
Google Ads$5,00015-20$250-$33030-40%
Door Hangers$2,0008-12$165-$25015-20%
Direct Mail$3,0006-10$300-$50015-25%
Truck Wrap (amortized)$500/mo2-4$125-$25020-30%
Referral Program$05-10$060-70%
SEO (ongoing)$1,500/mo5-15$100-$30030-40%

Google Ads wins on:

  • Lead volume (scalable)
  • Lead intent (high)
  • Speed (immediate results)
  • Tracking (you know exactly what works)

Google Ads loses on:

  • Requires ongoing budget (turn it off, leads stop)
  • Learning curve

The Budget Allocation Framework

Don’t put all your eggs in one basket.

Recommended total marketing budget allocation:

Channel% of Marketing BudgetPurpose
Google Ads40-50%Immediate lead flow
SEO20-25%Long-term organic traffic
Review Generation5-10%Build trust signals
Referral Incentives10-15%Leverage existing customers
Branding/Other10-15%Brand recognition

Example with $10,000 total marketing budget:

  • Google Ads: $4,500
  • SEO: $2,500
  • Reviews/CRM: $1,000
  • Referral program: $1,500
  • Branding: $500

Your Action Plan

Here’s how to determine YOUR budget this week:

Step 1: Calculate Your Economics (30 minutes)

Pull your data:

  • Average job value: $______
  • Profit margin: ______%
  • Close rate: ______%
  • Jobs needed per month: ______

Step 2: Research Your Market (1 hour)

Use Google Keyword Planner:

  • Search volume for your keywords
  • Estimated CPC in your market
  • Competition level

Step 3: Set Your Starting Budget

Based on your market size and goals:

  • Testing: $2,000-$3,000
  • Growth: $5,000-$8,000
  • Scaling: $10,000+

Step 4: Commit to 90 Days

Whatever you decide, commit to 3 months before judging results.

Month 1: Learning
Month 2: Optimizing
Month 3: Performing


Step 5: Plan Your Scale

If it works:

  • Increase by 30-50% every 2-3 months
  • Until you hit capacity or diminishing returns

The Bottom Line

There’s no magic number that works for every roofing company.

But here’s what I know for sure:

Under $1,500/month: Too small to get meaningful results
$2,000-$3,000/month: Good starting point for testing
$5,000-$8,000/month: Sweet spot for most growing roofing companies
$10,000+/month: Scaling mode for aggressive growth

The real question isn’t “how much should I spend?”

The real question is “how many jobs can I handle and what’s profitable?”

If you can close 30% of leads and your average job is $12,000, you can afford to spend $300-$400 per lead and still make great money.

Do the math for YOUR business. Then start with a conservative budget, gather data, optimize, and scale what works.