Ad spend Budgetting

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New Member
1 0 0

is there a rule of thumb when it comes to ad spend budgets relative to projected sales?

please explain the reason and if possible leave some metric links for further study. Thanks again! 

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Tourist
12 0 2

Hi Benny,

There is no rule of thumb. Just make sure you are not spending more than what you earn.

If you are testing marketing channels, keep your budgets as low as possible.

Hope that helps!

- Katy

 

Account Coordinator @ ppctheory.com.
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Pathfinder
186 0 31

Hey Benny,

This is how you can approach it :

Daily Budget = (Cost per acquisition from other channels)* (expected number of conversions per day)

For example your CPA (organically) is $5. If you are starting new on Facebook Ads, then you can assume the same CPA for facebook.
And you want to do 4 sales per day through facebook.

In that case you can have your daily budget as $20($5*4). After you have made enough sales through facebook, you will have a clear idea regarding it's CPA and accordingly you can vary your budget in the next iteration.

Hope this helps

Karan
Orangetwig :- Drive traffic to your store by social media

Karan Jassar
Founder, https://Socioh.com
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