How to Plan an Ad Budget
Ad budget planning means spreading your total amount across the campaign period to estimate the results you can expect. This tool divides your total budget by the number of days and, based on the basis you pick (cost per click CPC or cost per thousand impressions CPM), estimates clicks or impressions. Add your conversion rate and it also shows estimated conversions and cost per conversion.
Step by Step
- Enter your total budget and how many days it spreads over (typically 30).
- Choose the basis: CPC if you target sales/signups, CPM if you target brand awareness.
- Enter your estimated unit cost. Use your past campaign data or an industry average.
- Optionally add your conversion rate to see how many sales/signups to expect.
CPC or CPM?
If your goal is direct action (sales, form fills, calls), planning on a per-click basis (CPC) makes more sense — budget converts directly into clicks. If your goal is broad reach and brand recall, cost per thousand impressions (CPM) fits better. Many campaigns track both: gauge reach with CPM and efficiency with CPC.
Set Realistic Expectations
These figures are a projection; real results vary with competition, audience, creative quality and seasonality. Once the campaign is live, measure actual performance with our Ad Metrics Calculator. To structure and manage your budget on the right channel, get support from our advertising management service.