A useful Google Ads budget for retail and FMCG should be built from product economics, not a percentage of revenue. The key inputs are average order value, gross margin, conversion rate, repeat-purchase behaviour and the cost of reaching relevant demand.
Start with the maths
Estimate clicks from budget and expected CPC, then apply your actual conversion rate. Compare the resulting acquisition cost with gross margin and customer value. If the economics do not work, increasing budget will only scale the problem.
Separate products and intent
- Protect profitable, high-intent categories.
- Separate branded and non-branded demand.
- Use feed quality and product data as part of optimisation.
- Account for stock, promotions and seasonality.
- Measure new-customer cost separately where possible.
Scale contribution, not clicks
Review revenue, margin, acquisition cost and repeat purchase by campaign. Link the budget back to the wider Retail & FMCG marketing cost guide.
