Setting your ad budget is one of the toughest decisions. This guide shows you how to calculate it correctly based on your goals.
One of the most common questions we hear from clients on MindHub: "How much should I spend on ads?" There's no single number that fits everyone — it depends on many factors. Let's walk through it step by step.
1. Start with the goal, not the budget
Before opening Meta Ads Manager, ask yourself: what exactly do I want? Direct sales? App downloads? Brand awareness? Store visits? Each goal has a different cost. For instance, if you want Conversions, CPA (cost per acquisition) can range from 50-300 EGP depending on the industry.
2. Know the benchmarks in your industry
In Egypt, average CPM (cost per thousand impressions) on Meta is around 30-80 EGP. CPC (cost per click) is 2-15 EGP. In the Gulf, numbers are higher: CPM of 15-40 SAR. Ask your MindHub agency about benchmarks for your specific industry.
3. The 70-20-10 rule
Split your budget: 70% on proven performers, 20% on testing new creatives (A/B testing), and 10% on bold experiments (e.g., a new platform or ad format).
4. Calculate budget from revenue target
If you want 100K EGP in monthly sales and your average ROAS is 5x, you need to spend 20K EGP on ads. The formula: Budget = Target Revenue / Expected ROAS.
5. Start small and scale up
If you're just starting, begin with a small daily budget (100-300 EGP) for two weeks. Analyze results: is CPA acceptable? Is CTR good? If yes, increase budget gradually by 20-30% each week.
6. Don't forget fixed costs
Ad budget isn't just ad spend. There's also: agency/freelancer fees, content production costs (designs, videos), and analytics/automation tools. Agency management typically costs 15-25% of ad spend.
7. Review and adjust monthly
Budgets aren't static. Every month, review your campaigns: increase budget for top performers, pause what's not working. On MindHub, your agency provides monthly reports with these exact numbers.
The bottom line
Your ad budget should be a data-driven decision based on clear goals and real numbers. Don't overspend from day one — start small, learn, and scale.