.png)
How Much Should You Really Spend on Digital Ads?
Setting a digital advertising budget can be stressful. How much do you spend? What do you target? Fortunately, there are lots of tools that are carefully constructed to make your user experience as simple as possible, and JNT is here to help!
The first step in the digital advertising process is to clearly define your goal. If you’re looking to increase brand awareness, you should focus on promoting your brand to drive traffic to your website. On the other hand, if your goal is to drive conversions, you’ll likely focus more on the call to action and structure of your landing page. Once your objective is clear, you can set a digital advertising budget to fit your company’s needs.
Setting your digital ad spend budget is a vital part of your marketing strategy. While considering your individual needs, JNT will work with you to create a custom campaign with specific goals and optimize your ad spend to accomplish them. Digital advertising platforms make it easy to track performance and adjust in real-time, helping you get the most out of your budget.
Here’s a quick look at how different industries allocate their marketing budget toward digital advertising.
On average, small businesses spend about 53% of their marketing budget on digital advertising and 47% on traditional advertising. The infographic below shows what percentage different industries dedicate to their digital advertising spend compared to their overall marketing budget.
.png)
Data from a recent Upflip report
What results can you expect based on how much you spend?
$500 per month
Spending $500 per month on digital advertising can be seen as an opportunity for a startup. You can expect to start getting significant clicks and conversions, but not necessarily an ideal number. The primary goal at this level is to build momentum for your company and gather data; however, different businesses have different needs, and this level of spending could work for some in the long term as well.
$1000 per month
With an increased budget of $1000 a month, you can expect a significant increase in reach, exposing more people to your ads. Because of this, your website should see increased traffic and conversions as long as you have a quality landing page. One of JNT’s clients in the finance industry achieved a click-through rate of 1.81% and a cost per click of just $0.22 at this level of ad spend. It’s important to remember that these results will differ for every business, depending on industry, goals, and other factors.
$2000+ per month
Allocating an ad spend of $2,000 (or more) each month will allow your business greater flexibility to try new strategies, give you a wider reach, and increase your brand’s performance potential. With this level of investment, you can run more targeted campaigns and reach a wider audience. You’ll also have the flexibility to experiment with various ad channels like search, display, or social media. Most small businesses are likely to see stronger, more consistent results with this level of ad spend.
Whether you start with $500 or $2000, the key is to define your goals and find the amount of ad spend that is right for your business. Ready to make the most of your advertising budget? Contact us today to turn your clicks into conversions!
-Empower 2025 Interns
