Campaign strategy and budgeting

This guide explains how to structure your campaign funnel and allocate budget based on your daily ad spend.

The goal is simple: avoid spreading budget too thin while giving the platforms enough data to learn.

Budget tiers and recommended setup

Budget below $50/day

Recommended:

• Focus on one channel only (preferably Meta)

• Run few campaigns with limited ads

Guidelines:

• Do not spread budget across many campaigns

• Focus on one core product or offer

• Rule of thumb: $10 per ad, per day (Meta)

Budget $50–100/day

Recommended:

• Still focus on one primary channel (Meta)

• Faster learning due to higher spend

Options:

• Test multiple products using a Product Catalog campaign

• Keep campaign count limited

Guidelines:

• Rule of thumb: $10 per ad, per day (Meta)

Budget above $100/day

Recommended:

• Run Meta + Google Performance Max from the start

• Allocate budget initially 80% Meta / 20% Google

After a few weeks:

• Reallocate budget based on performance

• Ask your CSM to help design a funnel tailored to your business if you are on the Pro, Performance or Enterprise plan.

Day 0–14: setup and learning phase

Strategy

Campaigns enter the learning phase. No optimization actions are required yet.

Top funnel (prospecting)

Start with a top-funnel campaign promoting:

• Your best-selling product, or

• A small collection of strong products

Options:

• Prospecting campaign

• Single Item campaign

• Product Catalog campaign (recommended if testing multiple products)

Guidelines:

• Allocate ~80% of Meta budget to top funnel

• Rule of thumb: $10 per ad, per day (Meta)

If budget is above $100/day, include Google Performance Max from day one.

Bottom funnel (retargeting)

If you already have pixel data:

• Order a retargeting campaign

• Focus on 5–10 best-selling products

• Allocate ~20% of Meta budget

If you do not have pixel data:

• Wait 1–2 weeks before adding retargeting

• Allocate 80–100% of budget to top funnel

Action plan

• No changes needed during the first 14 days

• Ensure your Wallet has enough funds

• Allow campaigns to run without interruption

Day 15–30: evaluation and adjustment

Strategy

Review performance and identify early winners.

Scaling guidelines:

• Increase budgets gradually (max ~15% per increase)

• Avoid increasing more than 20–25% per day

• Monitor ROAS closely

If performance is weak:

• Launch a new campaign

• Test a different product from your top sellers

Learning takes time, especially for new stores with limited data.

Retargeting campaign

If not already live, this is the right time to add it.

Notes:

• Retargeting may not always spend full budget

• If ROAS is strong, increase budget until it spends consistently

Day 30+: optimization phase

Strategy

• Scale winning campaigns

• Reduce or pause underperformers

• Use ROAS as the primary signal

• Use CTR and CPC when conversions are limited

Rule of thumb:

• Expect a sale once ad spend reaches ~3× product price

• For low-priced items, allow up to 5–10× product price

Continue testing new:

• Products

• Creatives

• Audiences

Always keep the Wallet funded.

Analyzing campaign performance

CTR (click-through rate)

Measures how many people click after seeing the ad.

General benchmarks:

• Below 0.9%: low

• 1.0–1.5%: average (context-dependent)

• Above 1.5%: strong

CPS (cost per sale)

Should ideally be below your product price.

During the learning phase, temporary inefficiency is normal.

Conversion rate

Typical benchmarks:

• Store average: ~1.4%

• Top 20% of stores: 3.2%+

• Top 10% of stores: 4.7%+

If your conversion rate is below average, consider store improvements. Your CSM can help or connect you with a partner.

AOV (average order value)

Higher AOV improves margins and reduces required ROAS.

Common ways to increase AOV:

• Bundles

• Upsells

• Cross-sells

• Free shipping thresholds