Determining the right media budget for your D2C brand can be daunting. It is understandably a concerning task. Although we know the saying ‘You must spend money to make money’ is a common phrase, it’s important to ensure you are spending your dollars in the right places, combined with the right strategy.
Not everybody likes to play with numbers, but here at Arm Candy, that is one of our favorite things to do! Working through our ‘media math’ is a task we do with many new campaigns.
The following bullets provide a base of information needed to back into media numbers that make sense for you.
- What are your sales now?
- What are your product margins?
- What’s your break even CPA?
- What’s the demand for this product at this very moment?
- What are your sales goals? Why did you select these numbers?
The above questions probe thought and help to solidify where you need to be in order to make sure you’re in a good spot to determine a successful budget. But, it is just that—a starting point. Oftentimes determining media budgets extends beyond checking a few boxes.
What makes a budget right for you? How can AC help?
Smaller D2C brands, whose budgets are tight, can face hesitancy getting started with media. So, being familiar with both the financials, as well as projections and goals of your business, helps us help you. This is a HUGE piece of the puzzle that influences budgetary decisions and allows us to successfully manage your dollars.
If there’s anything Arm Candy believes in, it’s transparency. If we believe we can come out the gate hitting a break-even CPA, your campaign will be in great shape. And if we don’t think we will, we have these conversations before we turn on your media so you are not surprised. This makes those margin analysis discussions even more important).
And, because we operate on a minimum monthly fee, we have no incentive to spend more of your money. There’s no pressure to spend.
Let’s talk numbers
Like determining your budget, maintaining it requires starting in a comfort zone and working your way up from there. You might see great results at the beginning of your campaign, and want to pour more money into the budget. The results get addicting, and the dollars seem to eventually spend themselves. But, take our word for it, increasing your campaign spend methodically over time will yield better long-term results. In something like performance media, there really is no spend minimum needed to see results. So at the beginning of a campaign, you can allocate low daily spends, and just turning media on is a step in the right direction.
We want to ensure results and instill trust. As a result, we will always aim to start small and shoot big, never fluctuating your budget or allowing campaign performance to suffer. As we maintain consistency, our ad ops team will receive better data and will be able to make better, faster decisions in the best interest of you and your well-thought-out budget!
Ready to get started?
Are you stuck trying to decide the right media budget for your first campaign? Do you need a performance media partner to amp sales, and in turn, generate awareness for your brand? Reach out to us to get started!