Choosing a budget

Learn how to decide a budget for your ad campaigns

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Written by Frank
Updated over a week ago

Choosing a budget for your ad campaigns is no easy task, and it is crucial to ensure you sustain a good return.

In this guide, we will learn how to choose a budget for your ad campaigns.


Choosing a budget for each channel

Different sales channels require different budgeting. Let's review the channels used by AdScale.


AdScale creates a Facebook adset for each audience you select for your campaign.

Therefore, we recommend investing at least 2$ a day per audience.

For example, if you target three new traffic audiences and two remarketing audiences, your budget should be at least 10$ a day.

However, Facebook recommends spending at least 15-20$ a day per audience for optimal performance.

Your budget should be determined based on several other factors:

  1. Campaign goal and optimization event: Your budget may change depending on your chosen campaign goal.

    For example, "Reach" campaigns require less budget than "Conversions" campaigns, as impressions are much more common than purchases.

  2. Audience type and size: The broader the audience you are targeting, the higher the budget will likely need to be.

Note: Some audiences may appear twice, once as "New traffic" and once as "Remarketing"

Remarketing ads target the audience itself, while New traffic ads target a lookalike of the audience.

Each of them requires a separate budget.

Google Search

Investing at least 5$ a day for each search campaign is recommended.

This will vary based on the keywords you have selected for your search ads.

Keywords that are broad and frequently searched for are very competitive and are more expensive to target.

Very specific keywords aren't targeted by many advertisers and aren't as costly.

Make sure to choose your budget while considering the type of keywords you have selected.

Performance Max

We recommend using at least 5$ a day per Performance Max ad.

If you target multiple countries with Performance Max, AdScale creates each ad in a separate campaign.

Each campaign requires a separate budget.

Let's view an example:

Facebook - 5 audiences, with at least 2$ a day.

5 x 2 = 10$

Google Search - 1 ad, with at least 5$ a day.

1 x 5 = 5$

Performance Max - 1 ad, with at least 5$ a day.

1 x 5 = 5$

This means we need to invest at least 20$ a day.

Budget types

You can choose between a daily, monthly, or periodic budget.

🟢 Daily budgets are recommended as they can be changed more easily.

🟢 Monthly budgets refer to calendar months. This should be taken into consideration while choosing a budget.

For example, a campaign created on October 25th with a budget of 500$ will spend the entire budget in the remaining six days.

The same goes for budget decreases.

For instance, if a campaign with a budget of 2000$ spent 1000$ throughout the month, and its budget is decreased to 1000$, the campaign will be paused, as it has no more budget to spend.

🟢 Periodic budgets are usually used for campaigns that run for a short amount of time.

They are great for sales campaigns, such as Black Friday or Christmas sales.

If periodic budgets are altered during the selected period, the change in budget will affect the remaining days.

For example, if you create a five-day campaign with a periodic budget of 500$, 100$ will be spent each day.

However, if after three days you reduce the budget to 300$, the campaign will be paused, as it has no more budget to spend.

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