Introduction

One of the most frequently asked questions we receive is: “How much should I invest in digital advertising?” The answer is not unique, but there is a strategic way to calculate it.

In this article, we teach you how to define the ideal budget for your digital marketing campaigns, without wasting money and maximizing the return.

Why is there no magic number?

Every business is different. Selling consulting services is not the same as having an e-commerce clothing store. What’s important is not how much you spend, but how much you get in return.

Instead of looking at what others are doing, focus on your own margins, goals, and scalability.

Key factors to define your budget

1. Profit margin per customer

How much do you really make for each sale or new customer?

This determines how much you can pay to acquire it (CPA).

2. Monthly goal

How many customers or sales do you need for the campaign to be profitable?

Example: if your goal is to bill $1,000,000 CLP and each customer is worth $100,000, you need 10 sales.

3. Estimated cost per acquisition

Based on previous experiences or benchmarks:

If your CPA is $20,000, then 10 customers would cost $200,000.

4. Scalable budget

If you see positive returns, you can invest more. Always adjust based on results, not assumptions.

Recommended minimum budget?

Although there are no universal minimums, we recommend starting with a budget sufficient to obtain useful data and statistically-based decisions.

Practical examples according to goal

• Brand awareness campaign: from $150,000 CLP

• Lead generation or sales: from $250,000 CLP

• Complete funnel + remarketing: from $400,000 CLP

Remember: it’s not just how much you invest, but how you distribute it among campaigns, audiences, and funnels.

How to measure if your investment is working?

• CPA (Cost per Acquisition): how much does it cost you to get a lead or sale?

• ROAS (Return on Ad Spend): how much return do you generate for each peso invested

• Conversion rate: if many visits do not convert, the problem is not the traffic, it’s the website

Common mistakes when defining budget

• Investing without strategy or clear objectives

• Not considering the real value of the customer (LTV)

• Cutting investment too early (not giving time to optimize)

• Investing heavily in cold traffic without considering remarketing or nurturing

Conclusion

Defining your advertising budget is a strategic decision that should be based on data and real objectives.

At Agency Chicle, we help our clients invest in a smart, scalable, and profitable way, with campaigns that convert.

Want to know how much you should invest? We help you calculate it without commitment.

Book your Free Consultation by clicking: Here