If a client asks you to cut their Google Search Ads budget from $3,000 to $1,000, a few things happen: some immediately, some over time.
1. Impressions & Clicks Drop Fast
Lower daily spend results in fewer auctions entered and reduced visibility. Leads usually dip right away unless you tighten targeting.
2. Cost per Lead May Creep Up
Same targeting + lower budget = fewer chances for the algorithm to find cheaper conversions. You may also land in lower ad positions, which can increase CPL.
3. Learning Slows Down
If you’re using automated bidding (Max Conversions, Target CPA), the system now has less data to optimize with, which can hurt performance.
4. Competitors Get More Share
Your reduced spend could mean losing top positions to competitors who kept or increased their budgets.
5. Lead Quality Can Shift
A smaller budget may push Google toward cheaper, less qualified clicks — unless you refine keywords and negatives.
6. Smart Targeting Softens the Blow
Focusing on high-intent keywords, cutting wasted spend, and improving ad quality can still make $1K/month campaigns profitable, just at lower volume.
Rule of Thumb: A drop from $3K to $1K often means 60–70% fewer leads, unless you actively protect lead quality with targeting and bidding adjustments.
Your client is asking you to cut the budget?
Learn how to manage expectations of Local Service clients, while protecting campaign performance, in our Free Webinar on Thursday, Aug 21 at 11 AM CDT.
We’ll cover:
✅ How to explain realistic outcomes to clients
✅ What matters and should be reported to clients
✅ Managing Clients and their Biz results
