One of the most common questions we hear is simple: how much should we spend? There is no single right number. But there is a sensible way to reach a starting budget, and a sensible way to adjust it once real results arrive.
Work backwards from your goal
Start with what a customer is worth to you. Think about the value of a typical first order and, if relevant, how much a customer spends over time. Then think about how much you could afford to pay to win one and still make the business case work.
This gives you a rough ceiling for acquisition cost. It is not a forecast, but it gives every later conversation a clear anchor.
Budget for learning first
In the first weeks, your job is to learn, not to hit perfect numbers. You need enough spend to gather meaningful data on keywords, audiences and messages. A budget that is too small spreads thin and leaves you guessing.
- Focus on one or two channels rather than trying everything at once.
- Choose a small number of audiences or keyword themes to test.
- Agree a fixed learning period before you judge success.
- Set a clear point at which you will review and decide.
Plan for the costs around the media
Media spend is only part of the picture. Creative production, landing pages, tracking set-up and ongoing management all need resources too. Leaving these out can make a campaign look cheaper on paper than it really is.
Adjust based on evidence
Once you have results, look at what is working and move money towards it. If one channel brings enquiries at a cost you are happy with, test whether it can take more budget. If another struggles after a fair trial, reduce or pause it.
Increase spend in steps rather than big jumps. That way you can see whether results hold up as you scale.
A good budget is a living plan, not a fixed number. If you would like help building a starting budget that fits your goals, the Northpeak team would be happy to talk.
