There are a lot of questions I get asked over and over again as an ad agency owner — and, guess what? I’m absolutely an open book. I’ll answer any of ‘em!

However, some of the answers I have to give are nuanced… and that’s just the name of the game when you’re in this type of work.

This is especially true when it comes to one of the questions that I get again and again (and again) over here — AKA, “what is your ideal ads budget?”

So, settle on in: because I’m going to give you the breakdown behind this question and answer — but I’ll warn ya in advance, it’s not a straight answer.

Alright, you ready?

The truth about ad budgets

You might have already guessed based on the intro of this blog post, but here’s the truth about ad budgets: there is no set right budget number that I can (or would) give you. See, running ads is a highly personalized endeavor for the corresponding business. You have to dig deep into the data, set customized goals, and approach your ad budget from a mindset of both testing and flexibility.

To really define a budget, we do all of this — and then we crunch numbers based on the business to define budgets, and, in conjunction with the clients’ comfort level, go with it. See, over the years, we’ve seen success with $1,500 budgets, and $150,000 budgets — and it’s just further proof that ad budgets matter for the business who’s running them. That’s it. I promise.

How to define the right ads budget for you

Wondering how you can set the right ads budget for your unique needs and campaign? Well,  I’ve got you — always. While I won’t give you a tried-and-true number without knowing the data and goals, I will guide you towards making the right decision for you. Just follow these steps:

• First: what are your goals? 
  • The cornerstone of absolutely every single successful ads budget comes down to defining and understanding your goals for the campaign. What KPIs (key performance indicators) are you wanting to achieve? What is your ultimate best-case scenario for the end of your ads campaign? What would make you feel like your ad campaign was successful? 
• Second: what does your data tell you?
  • The coolest thing about running ads is that it leaves you with a TON of data to dig into at the end of every campaign — so, to choose your budget, make sure you’re paying attention to your past data! What targeting was working, and at what cost-per-lead or purchase? Don’t leave this part out because otherwise, you’re guessing or estimating. 
    • Note: don’t have any ad data yet? That’s ok! It won’t take but a few weeks to get insight. In the meantime, there are benchmarks based on your industry. Do a simple search to find out the average cost per lead or purchase for similar businesses.
• Third: focus on engagement before launching a big campaign.
  • Before you launch a big, expensive campaign, make sure your audience is WARM and ready to purchase — and make your ad dollars work for you, instead of the way around. Nurture your email list, run engagement ads at a lower cost, and focus on showing up with high-quality, valuable content. 
• Fourth: TEST.
  • The fun thing about ad campaigns is that you’re not married to anything — graphics, creative, targeting, even BUDGET. If your chosen budget isn’t working, feel free to test it alongside a different budget or even tweak it. You’re allowed! 😉

So, my pals, there you have it: a few tips to help you define the right budget for YOU. Just remember: this number is unique, and that’s how it’s supposed to be. I promise.

Stay tuned for more deep dives on this verrry topic.