How to Spend Money on Ads in the Beginning & How to Check ROAS

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One of the biggest questions new brands ask is:

👉 “How much money should I spend on ads in the beginning?”
👉 “How do I check if my ads are giving profit (ROAS)?”

This guide explains exactly that — in simple, clear language.

Let’s start.


PART 1 — How to Spend Money on Ads in the Beginning

When you are just starting, your goal is not profit, your goal is data.

Why?

Because:

  • You don’t know which audience works
  • You don’t know which creative works
  • You don’t know which hook works
  • You don’t know which platform performs best

Your first month of ads = testing month.

So how much should you spend?


1. Start Small: ₹300–₹500 Per Day (Testing Phase)

This is enough to understand:

  • which UGC creative works
  • which audience reacts
  • which placement performs
  • which hooks give reach
  • which age group engages

You don’t need ₹50,000 in the beginning.
Even ₹10,000–₹15,000 for the first month is enough to gather strong data.


2. Start With 2–3 Creatives (Not 10 or 20)

Beginners often make the mistake of launching 20 ads.

No need.

Start simple:

  • 1 UGC demo video
  • 1 UGC testimonial video
  • 1 product photo carousel

Let Meta learn.
Let Google learn.

Small number of creatives → faster learning.


3. Start With One Platform (Not All at Once)

If you are D2C:

✔ Start with Meta Ads (Instagram + Facebook)
They give the fastest learning + lowest cost.

Add Google Search/Shopping later, after understanding customer behavior.


4. Use Only One Objective at the Start: “Sales” or “Leads”

Don’t choose:
❌ profile visits
❌ engagement
❌ reach

These will give you numbers, not buyers.

Start with:
✔ “Sales (Website conversions)”
✔ “Leads (Instant form)”


5. Increase Budget Slowly After You See a Winning Ad

Once you identify a winning creative:

  • higher CTR
  • consistent reach
  • low CPC
  • add-to-carts
  • good response

Increase budget by 20–30% every 3 days.

This prevents the algorithm from resetting.


6. Spend 70% on Cold Audience + 30% on Retargeting

Simple structure:

Cold Audience (New People)

Budget: 70%
Goal: reach, awareness, new visitors
Best creatives: UGC hooks, demos, POV videos

Retargeting Audience (Warm Users)

Budget: 30%
Goal: conversions
Best creatives: testimonials, offers, before–after


7. Don’t Expect Profit Immediately (Very Important)

Your first 7–14 days are learning phase.

ROAS will be unstable.

This is normal.

Once the algorithm learns:
✔ audience pattern
✔ best creative
✔ best time of day
✔ high-interest segment

You will start seeing stable results.


⭐ PART 2 — How to Check ROAS (Return on Ad Spend)

ROAS = How much money you made from ads / How much you spent on ads

Formula:

ROAS = Revenue ÷ Ad Spend

Example:

  • You spend ₹1,000
  • You earn ₹3,000

ROAS = 3X
(Every ₹1 gives you ₹3 back)


Where to Check ROAS?

You can check ROAS easily on:


1. Meta Ads Manager (Instagram + Facebook)

Go to:

Ads Manager → Columns → Customize → Add “Website Purchases ROAS”

You will see:

  • ROAS
  • cost per purchase
  • add-to-cart rate
  • CTR
  • reach
  • CPM, CPC

2. Google Ads Dashboard

Go to:

Campaigns → Columns → Add “Conv. value / Cost”

This number = ROAS.


3. Shopify Dashboard / WooCommerce Reports

You can see:

  • sales from ads
  • UTM tracking
  • conversion analytics

Combine this with your ad spend → calculate ROAS.


What Is a Good ROAS for Beginners?

IndustryGood ROASVery Good ROAS
Beauty / Skincare2X–3X4X–6X
Baby Products2X3X–5X
Fashion1.5X–2X3X
Health / Wellness2X–3X4X
Gadgets1X–2X2X–3X
Home Products2X3X–4X

Remember:
For new brands, even 1.5X–2X in the beginning is strong, because you are building data.


How to Improve ROAS (Beginner Tricks)

✔ Use UGC ads

They reduce CPC, increase CTR, and improve conversions.

✔ Add retargeting

Warm audience converts at 3X–6X ROAS.

✔ Fix product page

If your website is slow or unclear, no ROAS.

✔ Use better hooks

The first 3 seconds decide 80% of performance.

✔ Use 2–3 UGC creators

Different faces → different results.

✔ Refresh creatives every 7–10 days

Avoid ad fatigue.


Simple Spending Plan for First 30 Days

WeekBudgetGoal
Week 1₹300–₹500/dayTesting creatives
Week 2₹500–₹800/dayTesting audiences
Week 3₹800–₹1200/dayScaling winners
Week 4₹1200–₹2000/dayRetargeting + optimization

This is the safest, smartest way to begin ads.


How Creator Navigator Helps New Brands With Ads & ROAS

Creator Navigator focuses on UGC ads, which are the BEST for:

✔ lower CPC
✔ higher CTR
✔ better reach
✔ better engagement
✔ higher ROAS

We help brands by:

  • Creating high-converting UGC videos
  • Writing hooks that increase watch time
  • Providing ad-ready vertical creatives
  • Testing multiple variations
  • Optimizing for Meta & Google
  • Retargeting-based testimonial videos

If you want ads that get reach, clicks, and sales, Creator Navigator gives you the exact UGC content required to achieve profitable ROAS.

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