5 Tips to Set Your Google Ads Budget for Your Coworking Space

“How much should I spend on Google Ads for my coworking space?”

It’s one of the first questions coworking operators ask, and one of the trickiest to answer.

Plenty of marketing blogs throw out blanket recommendations, but coworking isn’t generic. As such, your Google Ads budget can’t be either.

At Spacefully, we’ve seen budgets range anywhere from $1,000 to $10,000+ per month, per location. 

That’s a huge spread, but it’s not random. It’s calculated. And the good news is, there’s a framework you can use to figure out what’s right for you.

Here’s what you need to know.

5 Factors in Your Google Ads Budget Formula

We promise that, later on in this article, we’ll give you a clear-cut answer to the question of how much you should invest in Google Ads.

But first, we need to set the stage.

Instead of asking yourself, “How much should I spend on Google Ads for my coworking space?” a smarter question is this:

What budget do I need to hit my goals in my specific market, with my specific business?

Your budget comes down to a five-point formula:

1. Goals
2. Market Geography
3. Product Mix 
4. Pricing and Competition
5. Sales Cycle and Revenue Timing

Let’s break these down and then show how they add up to your real number.

1. Goals

Advertising should never exist in a vacuum. Everything starts with your goals.

Think about questions like these:

• Do you need to fill 10 private offices in 3 months?
• Are you targeting new coworking members or selling day passes?
• Do you want to promote all services at once, or focus on specific offerings right out of the gate?
• Is brand awareness part of your plan, or do you need leads now?

Whatever those goals might be for you, start there. This will help you reverse-engineer your budget.

If you’re unclear on your goals, you’ll either overspend unnecessarily or underspend and miss growth opportunities.Want to dive deeper into this subject? Check out our resource: Money and More: 7 Impactful Google Ads Goals for Coworking Spaces.

Market Geography

Many operators rely on the classic formula of targeting a 15- to 20-minute radius around their location. 

It’s a logical place to start, and it’s absolutely valid. We agree that 20 minutes is about as far as most people will travel for a coworking space. 

But there’s a caveat: 

This generalized radius only tells part of the story. 

In fact, a cut-and-dry radius can mislead you for any number of reasons. At Spacefully, we’ve seen ad radius be altered by things like: 

• Water, forests, or farmland 
• Traffic patterns that influence who’s willing to travel where
• Convenience and alignment with daily routines
• Dense urban areas that often require tighter targeting than sprawling suburbs

That’s why we always dig a little deeper. 

We start with satellite views, study roads, analyze traffic flows, and most importantly, ask our clients for local insights. 

Nobody knows your market quirks better than you.

Smart geography analysis saves budget by avoiding wasted clicks from areas unlikely to produce customers.

Product Mix

Not all coworking services cost the same to advertise. Here’s how it usually plays out:

• Private offices tend to cost more per lead because prospects take longer to decide
• Day passes and meeting rooms convert quickly and are cheaper to acquire, but are one-off revenue streams with no guarantee of repeat buying 
• Virtual offices and memberships often cost less per lead but usually bring in smaller monthly payments

That’s why your budget needs to account for what you’re selling, and how much demand there is for it in your market.

Pricing and Competition

Two coworking spaces in the same city might need drastically different ad budgets, purely because of pricing and competition.

This can be swayed by factors like:

• Higher-than-average pricing usually demands more budget to prove value to prospects
• Competitive or lower pricing can reduce your cost to acquire leads
• Unique offerings can carve out a niche and lower competition and cost
• Your pricing’s attractiveness compared to local competitors determines how aggressive your advertising must be

Pricing isn’t just about revenue; it’s also a lever in running cost-effective ads. 

If your prices are higher, you may need a stronger budget to educate prospects on why you’re worth the premium.

Sales Cycle and Revenue Timing

A big part of setting your Google Ads budget is understanding how the cost of a lead relates to the revenue that customer will bring your business over time.

Some coworking services bring in revenue quickly. 

For example, day passes and meeting rooms are often booked the same day someone clicks your ad. They help you see fast returns and keep cash flowing.

However, there’s no guarantee those bookings will recur with any predictability. 

Other services, like private offices or team suites, can take longer to close. Businesses might need weeks or months to decide on a space. 

Those conversions usually cost more to acquire, but their lifetime value is much higher.

For example:

• Let’s say your average cost per lead is $250
• You close about 20% of your leads
• That means it takes 5 leads to win one new office member
• So your cost to acquire that member is $1,250

That might sound expensive. But here’s why it often makes sense:

• That new office member might sign a 12-month agreement at $2,500 per month
• Over a year, they’re worth $30,000 to your business

So, even if you spent $1,250 to get them, the return is strong.

It’s the same story for services like virtual offices. 

You might spend $250 to acquire a customer who pays $40 each month. That cost might feel high upfront, but if the customer ends up staying for 9 months or longer, the investment pays off many times over.

When you plan your budget, think about more than just the cost of each lead. Consider how much revenue your average customer generates over time. That’s what turns marketing from a cost into an investment.

How to Calculate Your Budget Based on Your 5 Factors

We promised we’d give you a more defined answer about how much you should spend on Google Ads for your coworking space. 

There’s no universal number. But there is a way to figure it out, based on your business.

Here’s how to think about it:

First, get clear on your goal. For example:

“I want to fill two private offices this month.”

Next, figure out how many people you’ll need to reach to make that happen.

Start with your close rate. If you usually sign a deal with 1 out of every 5 people who contact you, that’s a 20% close rate.

That means you’ll need 10 leads to close two new customers.

Then, estimate your cost per lead. Depending on your market, a lead might cost you around $250. 

So, your starting budget would be:

10 leads × $250 per lead = $2,500

But that’s just the beginning. You’ll adjust that number depending on:

• How competitive your market is
• Whether you’re advertising lower-cost day passes or high-ticket offices
• How fast you want leads (check out this article to learn more about the Google Ads timeline)

Here’s why it often makes sense:

Even if you spend $2,500 to sign two new office members, those customers might each pay $2,500 a month. Over a year, that’s $60,000 in revenue from those two customers.

So, the cost to get them is usually well worth it.

That’s why some coworking spaces spend $1,000 a month and others spend $10,000 or more. It all depends on your goals, your market, and how much value each customer brings to your business.

What If You’re Working with a Small Budget?

Not every operator has $10,000 a month to throw at Google Ads. And that’s okay.

Here’s how to stay effective on a lean budget:

• Prioritize services that deliver cash quickly, like day passes or small offices
• Avoid overly broad keyword targeting that wastes budget on irrelevant clicks
• Be cautious with brand-awareness campaigns unless you’re prepared to invest for the long haul
• Track cost per lead and results religiously, so you know where every dollar goes

Running Google Ads without clarity burns through your funds before you see real ROI. Smart budgeting protects your cash and your growth.

Google Ads are the fastest way to generate leads and fill your coworking space. In most cases, the proverbial juice is worth the squeeze. The trick is deciding how much you’re willing and able to spend to achieve your goals.

We’ll be honest…

If this feels like a complex subject, that’s because… well, it is. If you’re still feeling unsure about how to set your Google Ads budget, we can help! Book a free introductory call with Spacefully today. 

We’d be happy to explain how Google Ads can help fill your coworking space, generate more revenue, and create a waiting list so you’re never scrambling to fill vacancies.