Lesson 6: Customer Value & How Much to Spend on Ads

Tammy Bridges • September 8, 2024

Lesson 6. Customer Value & How Much to Spend on Ads


You can choose to download the episode, listen to it here, or you can listen to it on many podcast networks, see the list and links below.



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One of the most popular questions I get asked about Facebook & Google ads is how much should I spend to get results?

I want to help you to determine what is a good budget but I also want to educate you on how to think this through properly.

Determining how much to spend on advertising is NOT a guess.

There IS math involved.

In order to figure out how much you should spend on advertising there are a few questions that need to be answered.

In this episode I will go through a few business model examples to give you an idea on how much you should be spending in order to bring new customers effectively into your business.

Here are your 4 variables for advertising budget consideration we will be discussing: 

  • ATV: Average Transaction Value (Average Sale) 
  • ACV: Average Customer Value 
  • CLV: Customer Lifetime Value
  • CPC: Cost Per Conversion 

You may be thinking I have this ITTY BITTY business - this does not apply to me.

But OH it does! Not having this knowledge and mindset is how your business stays itty-bitty. 

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