Ad Budget Adviser

What should your ad
budget actually be?

Six layers of modelling — demand, returns, break-even guardrail, platform benchmarks, friction multipliers and a phased ramp — instead of one flat number from an agency deck.

How the six layers work →

Your inputs

Platforms
Recommended monthly ad budget · Conservative
₹4,61,000₹32,05,000

This is the number we commit to. Expected and Stretch below assume benchmarks hold or beat.

Conservative
₹18,33,000
2.08x ROAS

CPC 20% above benchmark, CVR 15% below benchmark.

Expected
₹15,94,000
2.78x ROAS

Benchmarks hold.

Stretch
₹14,35,000
3.61x ROAS

Strong creative, listing score above 85, favourable auction.

Break-even guardrail exceeded

At this margin and target, the required spend exceeds what the unit economics support. Either raise price, improve margin, or lower the revenue target.

Per-platform breakdown

Amazon
CPC ₹6–20 · CVR 8–12% · 10 clicks/sale
₹88,000₹4,40,000
2.78x target ROAS
Meta
CPM ₹80–200 · CVR 1.5–2.5% · CTR 1.0–1.8%
₹3,13,000₹23,47,000
2.78x target ROAS

Phased ramp

Month 1 results are not the verdict. Spend and efficiency both step up.

1Phase 1 · Months 1–2
Learning
₹8,77,000/mo
1.11x expected ROAS

Data collection phase. Ads are buying information, not profit. Meta and Amazon algorithms need conversion volume before efficiency improves.

2Phase 2 · Months 3–4
Optimisation
₹12,75,000/mo
1.94x expected ROAS

Winners identified, losers cut. Efficiency climbing.

3Phase 3 · Month 5 onward
Scale
₹15,94,000/mo
2.78x expected ROAS

Steady state. Organic rank now supporting paid, blended efficiency improving.

Break-even guardrail

Break-even ROAS2.22x
Target ROAS (20% profit reserved)2.78x
Max affordable monthly ad spend₹7,20,000
Calculated budget₹15,94,000

Units & returns

Ad-driven share of revenue66%
Gross units ads must drive1,479
Returns provision (22%)+417
Total units to sell1,897

Cost drivers

Every multiplier applied to the benchmark spend.

Brand stage (New launch): +35%Listing quality (Average): +25%Season (Normal season): 0%Category competition (Fashion & Apparel): +10%

Improvement levers

What would actually reduce this number.

  • Your listing quality (Average) is increasing required ad spend by 25%. Raising it from Average to Good would reduce the budget by approximately ₹3,19,000/month.
  • New and growing brands pay a conversion-history premium of 35%. As review volume and conversion history build, roughly ₹4,13,000/month of this premium disappears.
  • Returns are absorbing 22% of gross units. Reducing COD share (currently 50%) through prepaid incentives directly lowers the units ads must drive.
  • Required spend exceeds what your unit economics support. Raise price, improve gross margin, or lower the revenue target before scaling paid.

Estimates are directional, built on India category benchmarks and adjusted for your brand stage, listing quality, category competition, and season. Actual performance depends on creative quality, price competitiveness, stock availability, and auction dynamics. Budgets are reviewed and revised monthly against live performance data.