Once you have defined your target audience and channels for your marketing activities, the question is how much budget should be allocated to these activities. Keep in mind that the budget will be an investment, not an expense.
Is there such a thing as a minimum budget?
When considering the size of your budget, there is no minimum that you need to set. Although there is a minimum budget for campaigns on some platforms, it is advisable to carry out a test run with a lower budget at the start of the campaign - at least if you have had little experience in online marketing and are unsure about the success of your campaign.
What factors influence my budget?
If you have already started a test run that has achieved a good ROI, you should increase your budget. Even so, there are other factors that influence your budget. For example, the value of your product. If the price range of your end product is high, the customer journey process is usually longer and more measures and thus more investments are needed to achieve conversions. A smartphone manufacturer will spend a very high budget on its new model, while a supermarket that wants to spread its weekly offers will spend a comparatively low budget.
How do I know that the investment is paying off?
If your campaign aims at sales, a functioning conversion tracking is important to make the success measurable. Especially if you run several campaigns with different variables, they should be comparable in order to be able to reallocate budgets if necessary. As a rule, a conversion pixel is generated via the respective platform, which is then placed on the page that opens after a sale. The pixel is now also called up and the conversion is counted. If you would like to learn more about conversion tracking at AdUp, click here!