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4 Things to Consider While Planning the Advertising Budget for the Online Store

4 Things to Consider While Planning the Advertising Budget for the Online Store 2022

4 Things to Consider While Planning the Advertising Budget for the Online Store

Any marketing campaign must be carefully planned. Where to place advertising, how much it will cost, and what the results will be – it is worth paying attention to every detail. The financial part is especially important for all businesses, be it an app or store. Competent planning of costs and distribution of resources affects the return on investment and the effectiveness of the entire campaign. Follow these tips for planning the advertising budget for the online store. 

What to Consider When Planning Advertising?

The budget is the main constraint when drawing up a marketing strategy and choosing media carriers. Its planning helps not to overstep the limits of expenses and rationally distribute resources between advertising channels. Preliminary analysis of your own funds is a great tool to optimize the cost of promotion and quickly achieve your goals.

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The first thing to consider when planning the budget is a specific goal of the campaign:

  • Increasing sales.
  • Attracting new customers.
  • Improvement of brand awareness in the network.
  • Presentation of a new product or service.
  • Maintaining a normal level of sales.

Besides, it is necessary to look at the specifics and financial capabilities of the project, the current demand, the characteristics of the target audience, the duration and projected effectiveness of each planned event and a number of other important factors. 

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Product Lifecycle

Once on the market, a product goes through a certain cycle. Advertising should be linked to this cycle. It consists of several stages, on each of which it is necessary to apply an appropriate strategy of behavior:

  • Start-up.
  • Growth.
  • Maturity.
  • Decline.

The main objectives of advertising in these different stages of the cycle are to familiarize consumers with the product, to expand its market share and squeeze out competing offers, and to ensure that demand for the position or product group does not diminish.

When introducing a new product to the market, more advertising costs are required. At first they may exceed the profit from sales. After achieving the intermediate results, you should choose a further direction, starting from the goal. For example, to reduce costs and defend the captured segment or to increase investments, which will contribute to the growth of sales.

At the stage of maturity, companies often reduce the advertising budget, because the products are already well known to the audience. When a product exhausts itself and enters the decline stage, it makes no sense to invest in its advertising.

When planning your budget, you should also consider possible fluctuations in the life cycle curve. They are characteristic of seasonal goods. They should be advertised as much as possible shortly before and directly during the seasonal jump in demand.

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Volumes and Borders of the Market

Before you plan your advertising budget, you need to objectively assess the current situation in the industry and the market as a whole. Anticipated costs should be commensurate with the likely demand and payback period of the campaign.

Expenses are affected by the volume and size of the market segment that is expected to be covered. Everything depends on the target audience, the specifics of the business, the optimal sales boundaries and the communication channels selected.

If the online store is working with specific regions, it is wise to focus on local advertising. This will be the most useful coverage. 

Competitive Experience

Before starting your own advertising campaign, you should always study the activities of your main competitors. This will help you choose the right tactics.

What you should pay attention to: 4 Things to Consider While Planning the Advertising Budget for the Online Store 2022

  • The ranking of direct competitors.
  • The amount they spend on advertising.
  • The pros and cons of their marketing activities.
  • The results of this or that campaign.

Data can be obtained from specialized analytical services. The higher the sales in the segment of interest, the more is invested in media activities. Sometimes it makes more sense to refuse to promote and launch a new product, rather than waste money. This is why it is important to evaluate the existing experience of others.

The average PPC cost on Google is around $1. So for 1,000 visitors, you’ll pay around $1,000. Many companies will spend up to 40% of their marketing budget here, and Google Ads average $9,000 to $10,000 a month for small businesses.

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4 Things to Consider While Planning the Advertising Budget for the Online Store

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Online sales are growing unstoppably. In 2020 alone, global e-commerce invoiced 27.6% more than the previous year, with Latin America being the region with the highest growth, close to 37%. And this growing trend of eCommerce will continue in the coming years. 

These figures make it clear that more and more consumers are opting for the online channel to make their purchases. Consequently, the number of businesses that want to go digital to sell on the Internet continues to grow, and you are one of them, right? 

But how much does it cost to set up an online store? The big question hammers your brain, and in this article, you will find the answer. Are you interested? Well, continue reading. In addition, you can download a sample budget to calculate your own.


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What factors influence the price of an online store?

If you have already investigated a little about the price of an online store, you may have gone a little crazy. How can the budgets that create e-commerce vary so much from one provider to another? 

And eye! We are not talking about a few euros up or down, but about differences of hundreds and even thousands of euros. For what is this? The truth is that it is easy to understand. The price of an online store is determined by the complexity of the project, the eCommerce software you choose (open source or custom developed) and the functionalities you need your business to incorporate. 

You will not pay the same for a virtual store with a small catalogue of 100 references that operates nationwide as for sizeable international e-commerce with hundreds of items for sale. 

And yes, both are online stores, but the business objectives are very different and, therefore, the complexity, the platform and the functionalities change by increasing or decreasing the budget. 

What factors influence the price of an online store?

Something similar happens when we want to buy a car. Why is the price of an Audi higher than that of a Toyota when both products have the same purpose? Simply because the benefits they offer you are entirely different. Yes, both cars take you from one place to another, but the handling, comfort and safety are very different.

Are you beginning to understand why an online store budget can vary so much from one provider to another? It all depends on what project you want to launch into the world.

And what factors are decisive when setting the cost of opening an online store? We detail them below.


One of the determining factors of the price of an online store is the eCommerce platform you choose to create. Some of the best known are Shopify, PrestaShop, WooCommerce, Wix, Magento and OpenCart.

This type of software has everything you need to start selling online successfully. Therefore, they allow you to save time and money compared to developing a custom-made online sales website, which is usually an expensive and slow solution due to the number of hours of work involved. 

These personalized developments are usually frequent among large online sales companies, given their high cost. Instead, most small and medium-sized e-commerce opt for SaaS and open-source platforms such as those mentioned.


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A significant advantage of these platforms is that they are usually accessible to almost any user profile since, in general, they are pretty simple to configure at a technical level. In addition, you can always hire a programmer to customize or extend its features.

For example, if you go with Shopify, you can get your store up and running starting at $29 per month and upgrade to the premium plan for $299 per month. It is an economical, intuitive and easy-to-use software. 

Another of the most used solutions is WooCommerce for WordPress. It is free to download, although it requires specific technical and programming knowledge for its configuration. If you do not have them, you will have to pay the corresponding fees to a company or freelancer that takes care of installing and programming your website so that it operates effectively, raising the budget of your online store. 

Keep in mind that the minimum cost of one hour of work is €30, reaching up to €150 if they have extensive experience.

If you want to clear up any doubts about which software is right for you, we recommend that you go through this guide with a comparison of the best eCommerce platforms of the moment.

domain and hosting

Your online store needs a domain name (virtual address) and hosting (where your website files are stored). 

The first can cost you a maximum of €20 per year. You can have quality hosting for between €60 and € 100 per year regarding web hosting. However, keep in mind that this price will increase if your business grows, web traffic increases (number of visits to your portal), and your needs are more significant.


We continue with another of the critical aspects of online sales: design. What impression do you get when you enter a physical store and see that everything is messy, with outdated furniture and some clerks who leave much to be desired? Bad, very bad. Come on; you don’t even think about running out of there. 

The same thing happens on the Internet. The first impression is essential to improving your sales forecast. If your website is careful and updated, it is easier for a customer to trust your business and be encouraged to take out a credit card to buy.

Today the e-commerce platforms discussed above offer free and premium templates with a clear, professional and functional look. To give you an idea, the price of a Shopify template ranges between $100 and $ 180, and that of a Prestashop template varies between €60 and € 300

If these themes do not meet your expectations, you can always choose to hire a programmer to adapt this template for you, paying for their working hours.

On the other hand, if you opt for an online store for your development, the design will be customized to suit your project, and its cost is much higher than the predefined templates (it does not usually go below €1,000 ).

4 Things to Consider While Planning the Advertising Budget for the Online Store 2022

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