Paid ads can skyrocket your brand’s growth, but the real question is—how much should you spend, and where should you invest your budget?
The right ad spend and platform choice can bring in consistent leads, sales, and brand awareness, but wasting money on the wrong strategy can drain your budget without results. In this guide, we’ll break down how much businesses should spend on ads, what platforms to use, and how to get the best ROI from paid advertising.
Why Paid Ads Are Essential for Business Growth
Organic reach alone isn’t enough anymore. Social media algorithms prioritise paid content, and competition for visibility is higher than ever. Paid ads allow you to:
🟢 Reach the right audience – Target users based on demographics, interests, and behaviour.
🟢 Drive conversions faster – Paid ads deliver immediate traffic and leads, unlike organic marketing.
🟢 Scale your business – The more you invest in effective ads, the more you can grow.
🟢 Measure and optimise – Every ad campaign gives you data to refine and improve performance.
If you’re not investing in paid ads, you’re leaving money and potential customers on the table.
How Much Should Your Business Spend on Paid Ads?
Your ad budget should align with your business goals, industry, and expected return on investment (ROI). Here’s how to determine the right amount:
1. Calculate Your Ad Budget Based on Revenue
Most businesses allocate 5-15% of their revenue to marketing. If your business makes £500,000 per year, you should be investing at least £25,000 - £75,000 annually in marketing, with a large portion dedicated to paid ads.
2. Start Small, Then Scale
If you're new to paid ads, start with £1,000-£3,000 per month and scale up based on performance. If your cost-per-lead (CPL) is £10 and your ads generate 500 leads per month, increasing your budget can directly increase your revenue.
3. Consider Your Customer Acquisition Cost (CAC)
If it costs you £50 in ads to acquire a customer, but they spend £500 on your services, that’s a 10X ROI—worth scaling up. The key is testing and optimising your ad spend to maximise return.
What Paid Ad Platforms Should You Use?
Choosing the right ad platform depends on your business type, target audience, and goals. Here’s a breakdown of the best platforms for different industries and objectives:
1. Meta Ads (Facebook & Instagram) – Best for B2C, Lead Generation & E-Commerce
🟢 Why Use It? Meta Ads offer detailed audience targeting and high engagement. Ideal for brands looking to generate leads, sell products, or drive website traffic.
🟢 Best Ad Formats:
✅ Carousel Ads – Showcase multiple products or services.
✅ Reels & Story Ads – Capture attention with short-form video.
✅ Lead Generation Ads – Collect customer details without them leaving Facebook.
2. Google Ads – Best for High-Intent Search Traffic & Local Businesses
🟢 Why Use It? Google Ads target users actively searching for your services, making it great for conversions.
🟢 Best Ad Formats:
✅ Search Ads – Appear at the top of Google when users search for relevant keywords.
✅ Display Ads – Show visual banners across websites.
✅ Shopping Ads – Promote products directly in Google search results.
3. LinkedIn Ads – Best for B2B & Professional Services
🟢 Why Use It? LinkedIn Ads work well for businesses targeting CEOs, decision-makers, and professionals.
🟢 Best Ad Formats:
✅ Sponsored Content – Promote thought leadership articles and case studies.
✅ Message Ads – Send personalised messages to prospects.
✅ Lead Gen Forms – Capture leads without taking users off LinkedIn.
4. TikTok Ads – Best for Brand Awareness & Younger Audiences
🟢 Why Use It? TikTok’s algorithm pushes content to new audiences, making it a great platform for brand discovery.
🟢 Best Ad Formats:
✅ In-Feed Video Ads – Appear in users’ For You feed.
✅ Branded Hashtag Challenges – Encourage user participation.
✅ Spark Ads – Boost organic TikTok posts for paid reach.
How to Maximise ROI on Your Paid Ads
Investing in ads is only half the battle—you need the right strategy to turn ad spend into revenue.
1. A/B Test Your Ads
🟢 Test multiple versions of headlines, images, and CTAs to find the best-performing combination.
🟢 Adjust budgets based on results—increase spend on winning ads and cut underperforming ones.
2. Use Landing Pages Optimised for Conversions
🟢 Your ads should drive traffic to high-converting landing pages, not just your homepage.
🟢 A clear call to action (CTA) should guide visitors to take the next step—book, buy, or sign up.
3. Retarget Website Visitors & Warm Leads
🟢 Retargeting ads bring back visitors who didn’t convert the first time.
🟢 Example: Someone visits your website but doesn’t book—show them a retargeting ad offering a discount or incentive.
4. Track & Optimise Performance
🟢 Set up Google Analytics & Meta Pixels to track leads and conversions.
🟢 Adjust bidding strategies, targeting, and ad creatives based on real-time data.
Final Thoughts: Are You Investing Enough in Paid Ads?
Paid ads aren’t just an expense—they’re an investment that, when done right, generates leads, sales, and brand growth. Businesses that underinvest or ignore paid ads risk being overshadowed by competitors who dominate search results and social feeds.
At Rubi.Agency, we help businesses scale their paid ad campaigns efficiently with expert targeting, high-converting creatives, and real-time optimisation.
Want to get more customers from paid ads? Let’s chat.
