How Much to Allocate for E-Commerce Ad Services?

When budgeting for e-commerce ad services, it's important to allocate your budget based on your overall marketing goals. A typical rule of thumb is to spend around 5-10% of your revenue on advertising, but this can vary based on your industry and competition.

Cost-Per-Click vs Cost-Per-Impression Models

Cost-Per-Click (CPC): You only pay when someone clicks on your ad.

Cost-Per-Impression (CPM): You pay for every 1,000 impressions (views) of your ad.

Each model has its pros and cons, depending on your campaign objectives.

Allocate 5-10% of your revenue toward advertising, depending on your industry and competition.