There's no magic number — but there is a method. Here's how to set a budget that's tied to your goals, not guesswork.
Forget rules of thumb like '7–10% of revenue.' Work backwards from a target: how many customers do you need, at what close rate from leads, at what cost per lead? Multiply it out and you have a spend floor that's actually anchored to outcomes.
Algorithms need conversion data to optimize. Starve a campaign and it never exits the learning phase. A useful minimum is roughly 30 conversions per campaign per month — set budget so each campaign can realistically hit that, even if it means running fewer campaigns.
Carve out 10–20% for experiments — new audiences, creative, and keywords — and keep the rest on what's proven. This protects performance while still feeding the pipeline of next winners.
Overspending early in the month distorts results and can blow the budget before your best hours. This is exactly what Mars, our paid-media agent, monitors continuously — flagging pacing issues and reallocation opportunities for your specialist to approve.
Related: Paid Media War Room · Mars
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