Let’s talk ad spend—not just clicks, impressions, and ROAS—but the strategy behind where your dollars go and what they do once they get there. In today’s business landscape, the businesses that grow aren’t always the ones with the best product or service—they’re the ones that know how to get attention, consistently.
And that attention? It usually costs money.
First, What’s “Normal” for Ad Spend?
On average, U.S. businesses allocate between 6–10% of their revenue to marketing, with a large portion of that going toward digital advertising. Service-based businesses (think agencies, consultancies, tech-enabled services) often spend slightly more—around 8–12%—especially when launching, scaling, or entering competitive markets.
But here’s the kicker: the percentage matters less than the strategy. Spend without tracking = wasted money. Spend with clarity = predictable growth.
Meet James and Alexis: A Tale of Two Service Businesses
James runs a B2B consulting firm. His services are solid, his clients love him—but he relies entirely on word-of-mouth. He’s proud of it. “All organic,” he says. The downside? Growth is flat. Leads are sporadic. And when one client churns, panic sets in.
Alexis also runs a services business—hers is a niche operations consultancy for online retailers. She set aside 10% of monthly revenue for ads early on. Facebook and LinkedIn at first. Then Google Search. She didn’t just throw money at it—she tracked results, adjusted offers, and worked with her bookkeeper to tie ad spend to real revenue.
- James is still manually chasing referrals.
- Alexis has a lead pipeline, a waitlist, and predictable revenue.
Both offer valuable services. Only one built a system.
The Ad Spend Landscape is Changing—Fast
Just five years ago, a Facebook ad with a solid headline and a few bucks behind it could flood your inbox with leads. Now? Not so simple. Platforms are noisier. Costs are up. Algorithms are tighter. Attribution is messier.
But here’s what is working:
- Specialization: Niche, clear offers with focused targeting are outperforming broad plays.
- First-party data: Businesses that control their email lists and retargeting funnels win.
- Video & Story-Based Ads: Consumers want connection, not static pitches.
- Reporting Alignment: The best marketers know how to tie spend directly to financial performance.
If you don’t know what your actual CAC is—or how to reconcile your Stripe payouts, ad platform spend, and bank balances—it’s nearly impossible to know if your ads are working.
So… Should You Be Spending?
If you’re asking this question, here’s a better one: Do you want to grow in a predictable way, or rely on chance?
Because ad spend, when tracked and managed properly, isn’t an expense—it’s an engine. The key is having a handle on:
- Your financial visibility (so you know how much you can afford)
- Your margin clarity (so you know what kind of return you need)
- Your systems (so you’re not just guessing)
Where Prosperitee Comes In
At Prosperitee, we help business owners like Alexis build smarter financial systems. We don’t just categorize “Marketing: $7,000” and move on—we help you understand how that $7,000 performed, and how to adjust spend, offers, or pricing to make the numbers work.
And if you’re more like James right now? That’s okay too. We’ll help you build the structure so when you’re ready to spend, you’re spending smart.
