Calculate your Ideal Ad Investment
Every business is unique, and so is their ad investment. Using your personalised goals and individual Shopify analytics, let's take the guesswork out of calculating your ideal ad investment in 30 minutes (or less). After using our FREE calculator, you'll be able to focus on creating flawless ads that drive sales and lay the foundation for paid ad success.
Step 1: Decide on your Sales Goal
The first step in using our ad budget calculator is to identify your sales goal. This can be based on your overall sales budget and marketing strategy. Setting a specific sales target will provide the foundation for calculating your ideal ad investment. With a clear goal in mind, you can align your advertising efforts to achieve tangible results.
Step 2: Input your Average Order Value
Next, open up your Shopify store's analytics dashboard. Within the last 12 months' data (or the maximum date range available), locate your average order value. This metric represents the average amount spent by customers on each transaction. Entering this value into the calculator will customise the results to your unique business circumstances.
Step 3: Load up your Online Store Conversion Rate
The next crucial piece of data to input into our ad calculator is your online store's conversion rate. This rate reflects the percentage of website visitors who make a purchase through your site. By providing this information, the calculator can determine the number of sales required to reach your sales goal, the number of clicks needed to generate those sales, the anticipated Cost Per Acquisition (CPA), your ideal ad investment, and the expected Return on Ad Spend (ROAS).
Step 4: Learn the Lingo
We understand that the world of paid ads can be daunting, especially with the jargon that gets tossed around. To ensure you make the most of the insights our calculator provides, we'll break down the complicated terminology, including CTR, CPM, CPC, CPA and ROAS. Understanding these terms empowers you to navigate your paid ad platforms with confidence.
By leveraging your personalised sales goal, average order value, and online store conversion rate, we’ll take the guesswork out of calculating ideal ad investment.
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