If you're starting out with paid campaigns (Google Ads, Facebook Ads, TikTok Ads), you're probably wondering: how much should I invest?
There isn't really a single figure, but there is a simple method to calculate the ideal budget and achieve good results without wasting money.
1. Define your campaign objective
Before assigning a number, ask yourself:
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Do I want to sell more products?
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Am I looking to generate leads or registrations?
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Do I need to increase traffic to my website?
Each objective influences the budget. For example, selling usually requires more investment than getting clicks, but the return can be higher.
2. Calculate the cost per expected result
Research the average costs of your target:
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Cost per click (CPC) for web traffic.
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Cost per lead (CPL) for lead generation campaigns.
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Cost per acquisition (CPA) for direct sales.
Example: If your average CPA is $200 and you want 50 sales, you will need at least a $10,000 budget.
3. Plan the duration and testing phase
Don't measure a campaign in just 24 hours.
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Testing phase: minimum 7 to 14 days to obtain real data.
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Ideal duration: one month to optimize and scale.
4. Adjust based on results and ROAS
ROAS ( Return on Ad Spend) tells you how profitable your campaign is.
If you invest $5,000 and generate $15,000, your ROAS is positive. Once you see it working, gradually increase your budget .
Final tip: invest an amount you can maintain for at least 30 days, evaluate with data, and adjust only when you have a clear picture.
Do you have any questions or want to learn more about how to evaluate the budget/performance of your campaigns? Contact us.
By:
Mariana Miguel