how much money should I put into paid advertising?

[vipermk2]

When I first signed up with godaddy as a host. They gave me free coupons for free advertising for $40 on google and $60 facebook.
I didnt get as many hits with google ads as I did with facebook. The amount of people that clicked on my facebook ad link was great.
The problem was, after the coupon expired, I didnt get any returning customers.

I am tempted to go with buying facebook ads in the hope of getting more people on my site and getting in more revenue from my ads. But how much money should I set aside for the advertising?

[CyberWizard]

Whenever I consider paid advertising, I consider one thing:

Will I at least make back the money I spend on advertising?

This is important, obviously, for any business environment. However, you always have to remember that the money is most likely not going to start rushing in. But, if your advertising can get you returning visitors then it is worth it because over time they should make the money back for you.

[vipermk2]

Originally Posted by CyberWizard

Whenever I consider paid advertising, I consider one thing:

Will I at least make back the money I spend on advertising?

Thanks for the reply. That was one of my concerns. But like you mention, money is not going to rush in.

[arnoldsmithh]

if you buy a worldwide ad so it will be expensive but if you wanna display your ad in local cities so it will be cheap.

[NextDayFlyers]

You really gotta know what you are doing with facebook ads or you can burn a lot of money easily. Try reading up on the topic first and testing with small amounts of money first.

[William Tubold]

There is no definitive answer as to how much any business should spend on advertising, try to find out what the advertising-to-sales ratio typically is in your field.

[jamesparker]

Originally Posted by vipermk2

When I first signed up with godaddy as a host. They gave me free coupons for free advertising for $40 on google and $60 facebook.
I didnt get as many hits with google ads as I did with facebook. The amount of people that clicked on my facebook ad link was great.
The problem was, after the coupon expired, I didnt get any returning customers.

I am tempted to go with buying facebook ads in the hope of getting more people on my site and getting in more revenue from my ads. But how much money should I set aside for the advertising?

This is totally depend upon your keywords competition!

[arcel]

it depends on the keyword your targeting and how much your willing to spend.

[Brazzell Marketing]

A standard guideline is that companies should budget 5% to 10% of their gross for marketing. Marketing usually includes paid advertising, but this would also include your budget for making new customer proposals, sales reps, satisfaction surveys, research, etc. Drug companies are reputed to budget up to 30% of their gross in marketing - depending on how you define marketing. Very many small businesses that struggle and fail to grow do not consider their marketing budget as a percentage of gross, and therefore under-invest in their own businesses. It's easy for a small business owner to look at a growing marketing budget with alarm. But considering the budget in the context of the company's growing gross income helps keep things in perspective. My marketing agency has been growing at an average rate of 40% per year for the past six years. I can tell you beyond a shadow of a doubt that this growth rate is due to the fact that I budget 10% of gross for marketing, and I spend that budget every year.

This guideline has been around since before the internet was such a strong marketing tool. Some might say that it's a brick-and-mortar guideline, not an internet business guideline. However, I would argue, that when you follow the advice already given in other posts in this thread, the guideline works for any business.