Start with your objective and work backwards from a target metric. If your goal is 500,000 impressions and your expected CPM is $5, your budget is 500,000 / 1,000 x $5 = $2,500.
Step 1 - Choose your objective
Reach/Awareness: use CPM. Traffic: use CPC. Conversions: use CPL or target CPA.
Step 2 - Benchmark your metric
Use platform averages as a starting point, then adjust for your industry, creative quality, and audience size. See our benchmark guide.
Step 3 - Calculate
Budget = Target Impressions / 1,000 x CPM. Budget = Target Clicks x CPC. Budget = Target Leads x CPL.
Step 4 - Sanity-check with break-even ROAS
If running e-commerce, verify your budget makes sense against your margin floor before committing spend. Use our Break-even ROAS calculator.