Why $500 A Month Won’t Cut It Anymore for Digital Ad Spend
We tell our clients all the time, “If you’re not willing to spend at least $500 a month on digital ads, you’re wasting your time.” PERIOD.
But here’s the cold, hard truth… $500 isn’t a growth budget. It’s a testing budget. Spending $500 a month on digital ads is the bare minimum to even start gathering data.
If you’re serious about growing your business through digital ads, $500 is the floor, not the finish line.
You’re setting yourself up for disappointment if you’re expecting to run Meta ads or Google ads on a budget of $500/month and flood your inbox with leads.
Let’s Talk Ad Budget: The 10% Rule
If you want real growth, you should be investing at least 10% of your revenue into total marketing efforts. And that’s a baseline. Of that marketing budget, 40-60% should specifically be used for digital ad spend — Meta ads, Google ads, TikTok ads, and other paid traffic platforms.
Example:
Annual revenue = $500,000 👉🏼 Yearly marketing budget = $50,000
~$20,000–$30,000/year (~$1,600–$2,500/month) JUST for running digital ads — the rest goes to other digital marketing efforts like website optimization, creative production, SEO, email marketing, etc.
Trying to shortcut this reality will only slow you down.
What does $500/month Get You?
Yes, spending $500 a month is our recommended minimum ad spend, but it’s important to know what $500 actually gets you.
This chart is based on a maximum monthly ad budget of $2,500. Actual results will vary depending on your industry, competition, offer, creative quality, and campaign strategy. These stages are general benchmarks to help set realistic expectations.
$500/month might work if:
You want to test an offer in a very specific niche.
You have little to no competition locally
You want to run a small retargeting campaign to a warm audience.
BUT if you’re trying to:
Build brand awareness.
Generate consistent & high-quality leads.
Retarget & nurture
Outrun competitors throwing $5k-$50k/month into ads.
… then $500 isn’t going to cut it. Plain and simple.
What to Expect from Your Digital Ads
We often have clients come to us before we’ve even hit day 30 of running ads, asking why they haven’t seen major growth yet. So, let’s talk about what a realistic digital marketing journey looks like:
Phase 1 (0-90 days)
Test. Test. Test. — creatives, audiences, you name it.
Phase 2 (90-180 days)
Optimizing ads based on real results — adjusting offers, refining messaging, etc.
Phase 3 (180+ days)
Increasing spend on proven ads — building predictable lead flow, lowering cost per acquisition (CPA), and maximizing ROI.
The truth is, if you’re pulling the plug after 30 days because you haven’t gone viral, you’re wasting your ad spend AND your opportunity.
Why You Might Not Be Seeing Results
You’re not spending enough to even break through your competitors.
You’re running one static ad and crossing your fingers that it works.
Your offer isn’t compelling — it happens to the best of us.
Your website is a hot mess express.
You’re expecting instant results without testing and data.
Digital platforms like Meta ads, Google ads, and TikTok ads aren’t magic. They need enough budget and time to test what actually works. Without that, your ads are just guessing.
Spend Smart, Not Cheap!
News flash: Digital advertising isn’t just boosting a Facebook post anymore. It’s a system that works when you fuel it properly.
Digital marketing isn’t just another expense on your accounting sheet, it’s an investment in your business.
And when you’re ready to do it right and work with a digital marketing team that’s been cutting through the digital marketing B.S. for over 10 years, give us a holler! Our team of marketing experts is ready to grow your business and increase your bottom line, not just chase impressions, likes, and empty promises.