Budget · 4 min
How much should my store spend on ads? Work it out from your numbers
Short answer
Start from orders, not budget: the orders you want per month × the most you can pay per order = your monthly budget. The most you can pay per order = average order value × margin. Keep a small share for tests, and only raise spend when cost per order holds steady for a few days.
The formula
Most people start with "how much should I spend?". The better question: how many orders do I want, and how much can I pay for each one?
Where does "max cost per order" come from?
AOV × margin: average order value × margin.
Average order KWD 20, margin after product, shipping and payment costs 40%.
Max cost per order: 20 × 40% = KWD 8. That's break-even. Want profit? Aim below it.
| Currency | Avg order | Margin | Max cost per order | 100 orders a month |
|---|---|---|---|---|
| KWD | 20 | 40% | 8 | 800 |
| SAR | 250 | 40% | 100 | 10,000 |
| AED | 250 | 40% | 100 | 10,000 |
We cover margin and break-even in detail in What is ROAS?
Don't put it all in one place
Give most of the budget to what has proven it sells, and a small share to tests: a new ad, a new audience or another product. That way you know what's next before the winner gets tired.
Why a small budget split many ways doesn't work
Ad platforms learn from results. Meta, for example, says an ad set needs around 50 results a week to exit the "learning phase". Split a small budget across many ad sets and none of them gets there; they all stay stuck learning.
The fix: fewer ad sets, each with enough budget.
Source: Meta Business Help Center, "About the learning phase".
When to raise the budget
We only raise spend when cost per result has held for 3 to 5 days, and we raise it in steps of about 20%. Big jumps send the campaign back into learning.
And with us, any change in spend happens only with the store owner's approval.
Free toolAd budget calculatorTry the toolQuick questions
Should I split my budget across every platform?
Not at the start. Begin with one or two platforms where you know your customers are, give each enough budget to learn, then expand.
When should I raise the budget?
When cost per order has held steady for 3 to 5 days and sits under the limit you worked out. Raise in small steps, around 20% at a time.
My budget is small. Start now or wait?
Do the maths first. If the budget can't bring enough orders for the platform to learn from, focus on one platform and your strongest product.