There is no universal advertising budget. The same amount may be sufficient for a local service in one city and barely noticeable in competitive national e-commerce.
What determines the budget?
Traffic cost
CPC depends on the sector, geography, competition, audience and advertising format.
Website conversion
The better a website converts traffic into enquiries or purchases, the more results a business gets from the same number of visits.
Product economics
Margin, average order value, repeat purchases and acceptable acquisition cost determine how much a company can invest in acquiring a customer.
Budget for testing
A test should collect enough data so decisions are not based on a handful of random clicks. It is therefore better to calculate the budget from expected traffic costs and the conversion volume needed for meaningful data.
Why you cannot simply copy a competitor
Companies differ in their website, brand, pricing, sales team, margins and analytics quality. Equal advertising spend does not mean equal results.
When to increase the budget
Scaling makes sense when tracking works correctly, enquiry quality is acceptable and the economics remain sustainable as volume grows.
The main principle
Budget is not the goal. It is a resource for acquiring data and customers. Its size should be linked to business economics and the channel's actual performance.