Native Ad Campaigns – How Big of a Budget Do You Need?

By now, most people know that native ads are among the best ways to monetize content and help with sales in general. But, native advertising also has a significant downside – high market competition.

If you want to get ahead of that competition, you need to invest a significant amount of money for your native ad campaigns to succeed. With that in mind, we’re left with only one conclusion: native ads are not the best options for beginners.

A disclaimer like that will turn off a lot of readers, we know. However, now we can now get into what kind of budget you need as a Media Buyer to be successful with various native advertisement networks.

How Does Your Budget Effect a Native Ad Campaign Outcome?

The size of your budget can have snowballing effects on the success of your ad campaigns. With a larger budget, you can perform more tests with various banners. In turn, if you have higher quality banners, you can attract more quality traffic.

The flipside to this is that a smaller budget lowers your chances of succeeding. A small budget combined with an inexperienced Media Buyer can even result in a total disaster. In the worst case scenario, you can both lose all of the money you’ve invested, besides not learning anything from the whole experience.

How Much Money Does a Beginner Media Buyer Need?

We’d love to give you a specific amount, but there is no sure answer. Starting a campaign on a Native Advertising Network can require anywhere from $5,000 to over $20,000 depending on who’s opinion and experience you rely on. If you say that’s a vast range, we agree. However, here’s a list of what your native ad campaign budget will depend on:

  • The number of banners that you need
  • The number of content spots a Native Ad Network offers
  • The conversion difficulty and the pay payout per lead
  • The affiliate marketing spy tools that you use

How to Come up with a Strategy?

Your first order of business should be to use the spy tools at your disposal to analyze both the competition and the market as a whole but don’t rush. After your research is complete, you should know which targeting options are best for you and what kind of banners you need to make. You can analyze ads that get the most views and run for at least a week. They will give test ideas for landers and offers.

The next step is to form a whitelist and blacklist. See which network spots have the best prices, and then compile sites with conversion rates that are positive. These will be the best sources for native ads with the most potential to make you money. Hedge your risks by investing 80% of what each lead pays out. Losing some money at first is inevitable, but try to earn valuable experience in the process. Once you see a spot is unprofitable, add it to your blacklist.

Overall, with a bigger budget, you can test more sites. This can be expensive if, for instance, you spend $10 on 1000 spots and lose $10,000 in the process. However, if you can take the loss, then you have 1000 sites in your blacklist and a much better chance of your next campaign succeeding.