Short video marketing

How much should a D2C brand spend on ads?

Short answer

There is no single right number. It depends on margins, growth goals and customer lifetime value. Start from what you can afford to pay to acquire a customer.

A practical approach is to work backwards: estimate how much gross margin a customer brings over their lifetime, decide what share of that you can spend to acquire them, and set your budget from there.

Early-stage brands often spend a large share of revenue on marketing to grow, while established brands aim for steadier ratios. Either way, test before you scale.

A known price per view makes this maths easier for at least part of the budget. See what CAC is and how to forecast ad spend.