How Much Should I Spend on Ads to Get Results?

When it comes to running ads, the most common question is, "How much should I spend to see real results?" This question is crucial, whether you're just starting out or looking to scale your efforts. The answer depends on your experience level, goals, and the specific platform you're using, such as Facebook or Google Ads. Let's break it down to give you a clear path forward.

1. If You’re Just Starting Out with Facebook or Google Ads

If you're new to the world of digital advertising, starting small is key. We recommend beginning with ad campaigns at $5 per day. This allows you to test different strategies and see what works best for your business. The advantage of using an AI ad tool like ours is that it helps you optimize your campaigns by automatically creating A/B tests, adjusting ad spend based on performance, and saving you money by pausing underperforming ads.

For beginners, it's ideal to run at least three different ad campaigns, each with a budget of $5 per day. This gives you a total daily spend of $15, which should be maintained for at least 14 days, though 30 days is preferable. This period allows you to gather enough data to make informed decisions about scaling your campaigns.

Example: You could run one Google Search Ad at $5 per day, alongside two Facebook Ads—one for retargeting and another for reaching new audiences. Test various elements like images, videos, ad copy, and targeting options. After the learning phase, typically around seven days, you'll have a better idea of what works and can optimize accordingly.

2. If You’re Looking to Scale Your Ad Spend

For businesses ready to scale, one of the key metrics to monitor is your Cost Per Acquisition (CPA). This metric tells you how much it costs to acquire a new customer. If your CPA is profitable, you can increase your budget to reach more customers.

A good rule of thumb is to keep your Advertising Cost of Sales (ACoS) at or below 30%. For example, if you're selling a product for $100, your ACoS should ideally be $30 or less. By continuously testing and optimizing, you can work towards lowering this cost further.

For newer companies, it's recommended to spend 12-20% of gross revenue on ads. If your goal is $100,000 in revenue for the year, aim to spend at least $12,000 on ads. Established companies should target 6-12% of their gross revenue.

3. How Do I Increase My Ad Spend After I Create the Ad?

Once your ad is up and running, you can easily increase your ad spend by editing your budget. Navigate to the Results section of your ad, click on the pencil icon next to your budget, and adjust as needed. It’s advisable to wait at least seven days before making any major changes to give the learning phase time to complete.

4. Where Does the Ad Spend Come From?

The ad spend is automatically charged to the payment method linked to your Google Ads, Facebook Ads, or other ad platforms. Ensure that your payment method is up-to-date and active to avoid any disruptions in your ad campaigns.