Budgeting for Paid Ads: How Much Should You Spend?
Introduction
“How much should I spend on ads?” It’s one of the most common questions we hear— and one of the most misunderstood.
This post will help you set a realistic, data-driven ad budget based on your goals, audience size, and funnel.
No fluff. No guesswork. Just math and smart strategy.
Step 1: Define Your Goal
Your budget depends on what you're trying to achieve:
• Brand awareness
• Leads
• Sales
Be specific. “Grow my business” isn’t a goal. “Get 100 email signups this month” is.
Step 2: Understand Typical Costs
Here are some average ranges (simulated):
Goal
Cost Range (per
result)
Impressions
$1–3 per 1,000 views
Link Click
$0.50–$2.00
Email Lead
$1.00–$5.00
Webinar Sign Up
$3.00–$10.00
Purchase
$10.00–$50.00+
Start small. Scale once you see consistent ROI.
Step 3: Work Backwards From Your Target
Want 200 email leads?
Estimate your cost per lead (say $3).
$3 x 200 = $600 estimated monthly budget.
Want to sell 10 spots in a $1,000 program?
If your cost per sale is $50, that’s $500 total. But you’ll also want to spend on lead generation BEFORE the sale—plan accordingly.
Step 4: Set Your Daily Spend
Start with:
• $10–$20/day for testing 1–2 ad sets
• Run for 3–5 days minimum before judging results
• Increase budget by no more than 20% daily when scaling
Step 5: Track and Adjust Weekly
Don’t just “set and forget.”
Review:
• CPM
• CTR
• Cost per result
• Conversions
Cut underperformers. Reinforce winners. Shift budget to what’s working.
Bonus: What Impacts Budget Performance
• Your niche (some are more expensive)
• Your funnel (is the page converting?)
• Your creative quality
• Audience targeting precision
• Ad fatigue (refresh every 10–14 days)
Conclusion
There’s no one-size-fits-all ad budget. But when you know your numbers, you can invest confidently—and profit predictably.
Start small. Track tightly. Scale smart.
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