Key Takeaways: Online Advertising Budgets
One of the most common questions businesses ask is how much they should spend on online advertising. The answer depends on multiple factors, but here’s a framework to guide your decisions.
Strategic Highlights
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Platform Minimums: Most platforms have minimum daily spends. Google Ads works with as little as $5-10/day, while LinkedIn requires higher minimums around $10-25/day for meaningful reach.
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Industry Benchmarks: B2B companies typically spend 2-5% of revenue on marketing, with 50% going to digital. E-commerce often invests 10-20% of revenue in advertising.
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Testing Phase: Start with a test budget of $500-1,500 per month to gather data. This period helps identify what works before scaling investment.
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Cost Per Acquisition Focus: Don’t think in terms of total spend - think about acceptable cost per customer acquired. Work backwards from customer lifetime value.
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Platform-Specific Guidance: Facebook/Instagram: $5-50/day for small businesses. Google Search: $10-50/day. TikTok: $20-50/day minimum for meaningful results.
The best budget is one that allows consistent presence and enough data to optimize. Start smaller, learn fast, then scale what works.
