It is going to take some time to learn how much the paid media is going to cost you in your individual circumstance, use the formulas to give you a good basis to know how much money you need to invest.
The right amount of paid media spend all comes down to metrics. How many leads do you wish to acquire a month? This is the question you need to start with.
- How many leads do you want to achieve a month?
- How much do you wish to pay for a lead? The B2B industry benchmarks for the following platforms are as follows:
- Google Search Ads Average CPA: £89.85
- Google Display Ads Average CPA: £100.86
- Facebook Ads Average CPA: £18.39
- LinkedIn Ads Average CPA: £58.03
- Which platforms do you want to promote ads on?
Knowing this, a simple formula can be used:
Maximum cost per lead x target number of leads = recommend total budget for the month
Next, by looking into your HubSpot portal you will need to assess what your current average lead to customer rate is. This will give you an idea on the bigger picture in terms of ROI; how much of the money you invest in and spend, and how this will pay off.
This is where you will need to define how much revenue you want to generate against what your average order value is.
ROI = Gain from Investment - Cost of Investment
Cost of Investment
The best practice is generally considered to start small and scale up as your paid media campaigns get optimised for success. What does this mean? Do not allocate all of your budget into paid media from the onset. This is a strategic process which should be monitored closely along the way.
It is going to take some time to learn how much the paid media is going to cost you in your individual circumstance, which is why using the calculator above will give you a good basis to know how much money you need to invest to expect the results you want to see.