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How much should I spend on my campaign?
How much should I spend on my campaign?

Best practices for setting a campaign budget

Humming avatar
Written by Humming
Updated over a week ago

The platform is designed to reduce barriers to advertising, and our low requirements around how spending is one way we do this.

Our platform minimum is set at $15/day, for a minimum of 7 days, for a total of $105. Why? Because we've found from experience that any amount or duration less than this returns unsatisfying results. Campaigns need time to gain traction, (particularly programmatic advertising that utilizes AI and machine learning) and need enough budget to be able to win bids and pay the data costs necessary to find certain audiences.
However, just because you can spend as little as $105, doesn't mean that level of spending will give you the results you want.

The true question should be, "How much should you spend to achieve the results you want?" Lots of factors go into determining your budget. If you have a national campaign, you will need a larger budget to reach people at scale. If you have a unique or high demand audience, you may need to pay higher data costs to find your customers. Advertising within certain verticals will cost more because they are more competitive, and advertisers within those verticals are willing to pay more to find customers. The types of ads you run will definitely impact your cost, and certain types of ads (like display) are less expensive than others (search or video).

If you are already advertising, and you're considering testing our capabilities, we recommend using a budget of at least 25-30% of what you are currently spending. This is typically large enough to generate results. As long as you keep the proportion in mind when comparing, this allows you to understand differences in performance.

If you are new to advertising, then we encourage you to think in terms of return on ad spend (ROAS).

ROAS = Total Ad Revenue / Total Ad Spend * 100

Average ROAS across all verticals in advertising is 2:1 or 200%. That is, if you spend $1000 on advertising in a month, you would expect to get $2000 in sales-generated revenue.

You can also think about how much a conversion (in the form of a sale, someone signing up, asking for more info, etc.) is worth to you. If you can determine this number (let's say $100) and you know how many people you want to convert in a given period (let's say 10) then you know your Desired Ad Revenue ($1000). Working backwards, if you know the typical return on ad spend in your vertical or industry (we'll use 200%), then you have a baseline for your expected budget.

$100 x 10 = Desired Ad Revenue

Desired Ad Revenue/ROAS * 100 = Total Ad Spend

$1000/200 * 100 = $500

We're happy to have conversations about budget to help you plan what is appropriate. We prefer to start with smaller budget, establish success and efficiency, and then scale that budget appropriately.

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