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Journal · Strategy 7 min read 30 Sep 2026
Strategy

How much should you actually
spend on paid ads?

'It depends' is true and useless. Here's the working backwards maths we use in every audit — target CPA, realistic volume, and the honest minimums per channel.

Daniel Rourke, founder and lead strategist
Daniel Rourke · Founder & Lead Strategist
30 Sep 2026 · 7 min read
Notebook with budget calculations next to laptop The back-of-envelope maths, done properly

The most common budget question we get isn't 'how much' — it's 'how little can I spend before this is pointless?' Fair question. Here's the maths we run in every first call.

Work backwards from a conversion

Start with what a lead or sale is worth, not with what you can afford. If a customer is worth A$400 profit and your close rate is 25%, a lead is worth A$100. Now spend enough to buy roughly 10–20 leads a month — below that, you can't learn or optimise, you're just sampling. That's A$1,000–2,000/mo minimum in most Australian markets.

Channel minimums, honestly stated

  • Google Search: A$1,500–2,500/mo — intent costs more but converts faster.
  • Meta: A$2,000–3,000/mo — needs volume to feed the algorithm and test creative.
  • TikTok: A$1,500/mo — one campaign, tight discipline.
  • LinkedIn: A$4,000+/mo — expensive clicks mean small budgets never stabilise.
  • Remarketing: 15–20% of your cold-traffic budget — never the main spend.

The management fee reality

A A$1,000/mo management fee on a A$1,000/mo spend means half your money buys labour, not media. Below roughly A$2,500/mo in spend, DIY or a lighter-touch engagement usually beats full management — we'll say so on the call if that's you.

There's no minimum that makes ads work — there's a minimum that makes them measurable.

The 90-day rule

Whatever number you land on, commit it for 90 days. Month one builds and learns, month two corrects, month three shows the trend. Pulling spend at week five because 'nothing happened' is the most expensive decision in paid media — you paid for the learning phase and skipped the payoff.

Budget planning sheet with channel splits

Bring your margins and your close rate to the audit call — we'll build the number with you in fifteen minutes.

In one breath
  • Value per lead × 10–20 leads = monthly floor
  • Google A$1.5k · Meta A$2k · LinkedIn A$4k minimums
  • Fees shouldn't exceed ~40% of media spend
  • Commit 90 days or don't start

Want this done for you?

This is literally our day job. Free 15-minute account teardown — no deck, no drip sequence.

Get the audit
Daniel Rourke, founder and lead strategist portrait
Written by

Daniel Rourke

Founded TAS in 2017 after a decade inside big agencies. Still does the unit-economics maths in every audit call himself — usually on a whiteboard.

Follow-up questions

People also ask

Almost never for managed campaigns — the fee-to-media ratio is upside down and you can't buy enough conversions to learn. Better spent on one good creative asset or saved until the budget is real.

No — splitting A$2,000 across three channels gives you three starving campaigns. Pick the one channel closest to purchase intent (usually Search or remarketing) and fund it properly.

When CPA is at or below target for 4+ consecutive weeks and impression share isn't capped by budget at 100%. Scaling a campaign that isn't stable just buys instability faster.
Chart comparing budget scenarios over 90 days Too small to measure = too small to spend

Let's do the maths on your numbers

Fifteen minutes, your margins and close rate — we'll tell you the honest minimum for your market and whether it's worth starting now.