Your data-driven advertising budget planner
Paying for clicks to your website is a risk. Who knows if it'll pay off? It can feel like buying a lottery ticket. But it doesn’t have to. Plan for ad spend success by estimating a few key metrics. Don't gamble with your business. Know what kind of ROI you can expect.
How much do you spend a month on digital ads?
If you don't spend on ads now, just test out a number, 10% of your total marketing budget is a good place to start. Once you've entered all other metrics, come back to budget to see how it affects profit.
How much are you willing to pay for a click?
Depending on the ad network and audience, B2B marketers can expect cost-per-click to range from $1-$7 or more. You can use the Google KeyWord Planner for help estimating your CPC for search ads.
How often does a visitor convert into a lead on your website?
For the average for B2B marketers it's around 2.6%. Check out these 10 Tips to improve your conversion rate (CVR).
On average, how valuable is a single customer?
For many companies this number may vary or increase over time. Test different options, such as a new customer vs. the lifetime value of a customer.
What percentage of your leads turn into Customers?
This is crtical to monitor. Talk to sales and make sure the leads you deliver are top notch. Increasing lead to customer rate can drastically improve the ROI of your ads 10 Tips to align sales and marketing.
Number of Clicks
Number of Leads
Value of a Lead
Return on Ad Spend
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If you'd like to start creating better ads for your customers, try running your ad campaigns through HubSpot.
In order to calculate the return on ad spend (ROAS), marketers need to divide the revenue they gained from a set of ads by the cost of running those same ads: Revenue / Cost x 100.
Ad Spend is the sum of money spent on an advertising campaign or set of ads, as well as costs linked to professionals managing them.