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 Type | Population | Monthly Budget | Expected Leads |
|---|---|---|---|
| Small Market | Under 50,000 | $1,500-$2,500 | 4-8 leads |
| Mid-Sized Market | 50,000-200,000 | $3,000-$5,000 | 10-15 leads |
| Large Market | 200,000-500,000 | $5,000-$8,000 | 15-25 leads |
| Major Metro | 500,000+ | $8,000-$15,000+ | 25-50+ leads |
By Company Size
| Company Type | Annual Revenue | Monthly Budget | % of Revenue |
|---|---|---|---|
| Solo/Small Crew | $300K-$500K | $1,500-$3,000 | 3-7% |
| Established (2-3 crews) | $500K-$1.5M | $3,000-$7,000 | 3-6% |
| Growing (4-6 crews) | $1.5M-$3M | $7,000-$12,000 | 3-5% |
| 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 Category | Average CPC | Range |
|---|---|---|
| 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)
- Go to ads.google.com
- Click Tools → Keyword Planner
- Search your keywords + your city
- 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 Type | Expected CPL | Notes |
|---|---|---|
| Emergency repair leads | $200-$350 | Higher intent, convert fast |
| Roof replacement leads | $250-$450 | Longer sales cycle |
| Informational/low-intent | $100-$200 | May 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:
- Accept fewer leads (27 leads instead of 40)
- Improve your close rate (35% instead of 30%)
- Increase your average job value
- 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
| Season | Search Volume | Competition | Recommended Strategy |
|---|---|---|---|
| Spring (March-May) | High | Very High | Peak budget (140-160% of average) |
| Summer (June-Aug) | Very High | Extreme | Peak budget (150-180% of average) |
| Fall (Sept-Nov) | Medium-High | High | Standard budget (100-120%) |
| Winter (Dec-Feb) | Low-Medium | Medium | Reduced 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:
| Campaign | Priority | Daily Budget | Monthly |
|---|---|---|---|
| Emergency Repairs | High | $100/day | $3,040 |
| Roof Replacement | Medium | $60/day | $1,824 |
| Branded | Low | $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 Budget | Expected Revenue (Month 4+) | Expected ROI |
|---|---|---|
| $2,000 | $10,000-$16,000 | 5-8× |
| $5,000 | $30,000-$45,000 | 6-9× |
| $8,000 | $50,000-$80,000 | 6-10× |
| $12,000 | $75,000-$120,000 | 6-10× |
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
| Channel | Monthly Investment | Expected Leads | Cost Per Lead | Close Rate |
|---|---|---|---|---|
| Google Ads | $5,000 | 15-20 | $250-$330 | 30-40% |
| Door Hangers | $2,000 | 8-12 | $165-$250 | 15-20% |
| Direct Mail | $3,000 | 6-10 | $300-$500 | 15-25% |
| Truck Wrap (amortized) | $500/mo | 2-4 | $125-$250 | 20-30% |
| Referral Program | $0 | 5-10 | $0 | 60-70% |
| SEO (ongoing) | $1,500/mo | 5-15 | $100-$300 | 30-40% |
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 Budget | Purpose |
|---|---|---|
| Google Ads | 40-50% | Immediate lead flow |
| SEO | 20-25% | Long-term organic traffic |
| Review Generation | 5-10% | Build trust signals |
| Referral Incentives | 10-15% | Leverage existing customers |
| Branding/Other | 10-15% | 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.