Your organization's total ad spend is exactly what it sounds like — the sum total of how much money you've spent across all advertising channels. These channels include, but are not limited to Snapchat, Facebook, TikTok, Meta, and Google Ads. If your organization is not engaged in any paid advertising, this metric is not especially relevant.
Tracking your eCommerce brand's total ad spend is important for several reasons.
Caption: Varos makes it easy to track your ad spend across multiple channels.
Calculating total ad spend is simple. All you need to do is add up spending for each of your marketing channels over a given period of time. Let's say, for instance, pay for ads on both Google and Facebook.
All you need to do is look at the dashboard for each platform, and you should be able to find and tally up the numbers.
Depending on who you ask, your marketing budget should represent between 2 and 10 percent of your total revenue. As for how much of that should go towards advertising? There's really no universal golden number.
There are many variables which directly impact how much you should spend on ads:
For an organization that exclusively focuses on Facebook ads, total spending will be different than for a business that targets both Google's paid advertising alongside TikTok ads. You need to carefully consider your own circumstances before you start spending.
It's also important to understand that with paid advertising, how much you spend matters much less than how you spend. You cannot simply throw money at your ad campaigns and not bother monitoring and optimizing.
You need to approach this strategically.
Caption: In addition to tracking ad spending, Varos can help contextualize your data with a range of other metrics and benchmarks.
To optimize your total ad spend: