Google Ads operates on an auction system; you bid against other businesses for ad placement based on keywords and targeting. While there’s no *strict* minimum spend, effective campaigns in 2026 require a budget sufficient to gather meaningful data and compete for relevant search terms.
- Smart Bidding Strategies: Current systems include advanced machine learning, like Performance Max and Target CPA, which require a minimum conversion volume to optimise effectively.
- Quality Score Impact: Google prioritises ads with high Quality Scores (relevance, landing page experience, expected CTR). Low budgets limit testing and optimisation needed to improve this.
- Geographic Targeting: Precise location targeting within Australia – down to postcodes – is now features prominently, but requires sufficient budget to reach a viable audience size.
- Automated Extensions: Google automatically tests ad extensions (sitelinks, callouts, etc.) to improve performance, but this relies on data generated by ad spend.
As of early 2026, a truly *functional* Google Ads campaign for an Australian small-to-medium business generally starts around $1,500 – $2,000 per month. This allows for sufficient keyword coverage, A/B testing of ad copy, and the data needed for Smart Bidding to work effectively. Lower budgets (under $500/month) often result in limited visibility and minimal return. Compliance with Australian Consumer Law regarding ad transparency is also crucial, and requires ongoing monitoring.
Rather than navigating such complex technicalities yourself, you can simply reach out to our team. At ROI growth agency, we can take care of all this for you. Visit https://lp.roi.com.au/contact-us/ to get started.
