Explained: your ad budget
What is a recommended ad budget and why should you care?
When planning marketing activities, one of the most common questions is:
“How much should we invest in advertising each month?”
The answer depends on the type of business, its goals and its financial resources. A well-set budget makes sure your ads have enough reach and deliver results without straining your cash flow.
How is the recommended budget calculated?
Generally, it’s based on monthly revenue and a recommended percentage that should go into advertising:
Online stores: 8–15%
Local services: 5–10%
B2B companies: 2–5%
SaaS and subscriptions: 10–20%
These percentages are then adjusted based on your goal:
Maintenance mode — stabilizing results,
Growth mode — gradually increasing performance,
Aggressive launch — quickly gaining market share.
Example:
If an online store has monthly revenue of €20,000 and chooses the growth goal, the recommended budget could be €2,400–€3,600 per month.
Why is a clearly defined budget important?
You ensure enough reach — your ads are shown to enough potential customers.
Better campaign planning — you know how much you can invest in each channel (Google Ads, Meta Ads, YouTube…).
More effective measurement — you compare campaign performance against a real plan.
You avoid wasteful spending — you won’t spend too little (so your campaigns have no effect) or more than you need to.
What to watch out for
Your budget does affect campaign results, but it isn’t the only factor in success. These matter too:
the quality of your creatives,
the right targeting,
campaign optimization,
your overall business strategy.
The tool recommends a budget based on industry standards, but real numbers may vary depending on competition and seasonality.
Recommended ad budget
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