How Much Should You Really Spend on Ads?

“How much should I spend on ads?” is probably the most common question I get asked.

And I get it! Budgeting for digital marketing can feel like a guess and check game.

So, here’s how I help our clients figure out an ad budget that actually works

 First, What’s Your Goal?

If you tell me “I just want more visibility,” I’m gonna ask: Okay… but visibility to do what?

Your goal defines your budget. Here’s a quick cheat sheet:

• Brand awareness? You can get away with a lower CPM (cost per thousand impressions), especially on Meta or TikTok.
  
  
• Lead generation? You’ll need a little more to get quality form fills or downloads.
  
  
• Sales? Buckle up—you need enough to test, optimize, and scale what works.
  
  

Different goals = different budgets.

What’s the Magic Number?

I wish I could say there was a universal “perfect number,” but here’s what I recommend as a starting point:

 Minimum viable testing budget:

• $1,500–$3,000/month is the sweet spot for small- to mid-sized businesses to gather data, test creatives, and optimize fast enough to make progress.
  
  

 Want to “just test”? Cool, but know this:

• If you’re spending $500/month, expect to learn—not earn. You’ll get insights, but likely not a flood of leads.
  
  
• A tiny budget is best treated like market research, not a conversion engine.
  
  

Budget Isn’t Just Ad Spend

Here’s something that gets missed all the time.

You’re not investing in just ad space.

You’re also investing in:

• Campaign structure
  
  
• Creative testing
  
  
• Funnel optimization
  
  
• Tracking and reporting
  
  

And if you’re working with a great agency (hi 👋), you’re also getting real strategic support—not just button pushing.

So when you think budget, include the whole system, not just the media spend.

What You Actually Need Before Spending a Dime

Before you run ads, ask yourself:

• Do I have a clear offer?
  
  
• Do I know my audience?
  
  
• Do I have a landing page that’s built to convert?
  
  

Missing any of these components will guarantee bad performance. So it’s pivotal to create these before launching any ads.

Final Thoughts: It’s Not About Spending More. It’s About Spending Smarter.

You don’t need to compete with billion-dollar brands.

You just need a budget that helps you:

• Reach the right people
  
  
• Deliver the right message
  
  
• Learn what’s working
  
  
• And adjust fast
  
  

Let’s Chat!

If you’re feeling stuck, overwhelmed, or unsure how to move forward. Let’s Chat.

We’ll look at your goals, your current strategy (or lack of one 👀), and help you create a plan that actually works for your business.