What Should You Know When Considering Your Ad Spend?
What Should You Know When Considering Your Ad Spend?

By: Abby White

Most businesses, when considering a new expense, tend to be reasonably cautious about spending money. They don’t want to throw their expenses to the wolves without knowing if it has a profitable outcome. What should you consider when you’re looking to increase your marketing outreach or business growth? What are the benefits for you to …

We asked our experts, Lacie Geary and George Cicci, to talk about how to determine your ad spend, what ads could be good for you based on your budget, and more. Everything in this post is per their insight and what they’ve learned in working with online marketing.

How Much Is Enough?

via Giphy

When it comes to ad spend, more money does help, but you don’t have to flesh out $5k a month right off the bat. It can be gradual, and the return can spike at any time. Your ad spend is typically related to how big you aim your audience outreach to be. Local, within your city or town, probably won’t be more than $10 a day. For a larger region, it’s definitely wiser to spend a little more, so maybe $25 a day could get you by.

The bare minimum, according to our professionals, is $1k a month, or $33.33 a day, for one campaign. It’s all about making sure you ads are getting seen. With the algorithm, you need at least 50 conversions in a seven day span. This is a recommendation at a national scale.

Impakt likes to run two campaigns typically, so it is recommended to spend $66.66 a day, split between two campaigns, on a national scale. These two campaigns will be adjacent to one another with two different objectives that we’ll get into later.

Down to the client level, different industries do not have a particular baseline for ad spend recommendations. There are businesses who only spend a little to market their items online, no matter how big the price tag is on their inventory. Of course, it can come down to the consumer level as well. If two similar companies with similar campaigns, ad spend and ads, one could be doing better than the other. It’s dependent on their list of those who regularly purchase or are interested in their items.

Obviously, pricier items will increase your cost per result, but the money you make off of that will be significantly larger in your return. It balances out, and everyone wins. However, there is another main factor that plays into your cost per result, and that is the saturation of your competition in your audience. It greatly affects how much you will spend and how far your reach will go.

Digital Branding on a Budget


If I am on a limited budget, what sort of ads should I run? Well, it depends on what type of business you are. If you just want to get the word out about your business, then awareness ads are where it’s at. They will gather the audience who is looking for you, or find new members of that audience. If you’re doing eCommerce, you’ll probably want to go with a traffic campaign, optimizing for page views.

According to Lacie and George, a video view-oriented campaign is a great way to get your brand out there to others. It is also extremely helpful if your brand has the personality for it, especially if it’s humor oriented. People respond to strong, relatable emotions. So, if your brand has the personality and capacity to spread that kind of interesting spin in your ads, take that opportunity!

Should I Panic If I Don’t See Results Right Away?



You shouldn’t panic after a month, two months, or even three. The goal is to constantly show progression for your investment. The first thing Impakt does is to get clients to be ROAS+ (return on ad spend positive), and the algorithm rewards that, pushing it towards people who are extremely likely to complete your objective. 

If you’re going after conversions, you should have 50 through the campaign adset a week for the algorithm to learn properly. If your numbers are low to begin with, you have to go into it with a long-term mindset. Even if you have a new product, new website, etc. you are investing into your brand for the long haul. 

Focusing on your mindset when it comes to spending, you have to know this isn’t a “get rich quick scheme”. It’s a necessity if you want brand longevity, continued success, and brand loyalty. A lot of people in unknown markets come from your advertising online, and they all have the potential to be your most dedicated consumers. Therefore, contributing to the growth of your company through online advertisements, no matter the pace, should be a priority.

What Ads Work Best?

Creatively speaking, video ads tend to do really well. Anything that is thumb-stopping and eye-catching tends to grab a viewer’s attention, like an animation or a short video. However, it is all situational. Video works for a lot of people, but less for others. Carousel ads can be your breadwinner, but your image ads could earn less. It depends on your audience and what the algorithm likes. 

Despite different creative ads performing well, poorly, or better than others, it is good to have an even mix of different types of ads. It ads diversity, uniqueness for your audience, and it tests to see which ones work better in contrast to the others. You’ll never know which ad outperforms the others, and it takes this information to move forward with editing your ads and refreshing them after they’ve had a pretty good run-time. Overall, you need to pay attention to all of it so you can adjust accordingly to optimize your success. There is also a tool you can use called Conversion CBO (Campaign Budget Optimization) will automatically prioritize the budget towards what ads are outperforming others. 

Impakt prides itself on focusing on the data and results of our campaigns. Data informs the creative, targeting, budget, and your objectives. This gives us a guideline how what works and what doesn’t with your brands. 

In general, objectively, it depends on the person. Depending on your objective, dynamic retargeting ads perform the best, but that success is based on previous success on getting people to your site and add-to-carts. 

The Wrap Up


Determining ad spend can be a daunting task for you and your business, but, with the right information and tips, you can be on top of everyone’s feed before you know it. Just know that there’s no need to panic, focus on growth, and constantly aim to better your ads and your business. 

Marketing is an investment that shouldn’t be frowned upon or sped up. It takes time for the ads to get out of the learning phase and to succeed and grow. Be patient. 

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