Ad Spend Planner
Plan monthly ad spend by working backwards from a revenue target. Required spend = (target revenue ÷ AOV) × target CAC. The plan compares required spend against your gross-margin envelope to surface whether the target is sustainable.
- Required spend = (target revenue ÷ AOV) × target CAC.
- Sustainable spend ≤ revenue × gross margin.
- Most Indian D2C plans break at the AOV × CAC math, not at channel availability.
Organic doesn't need ad spend
Required Spend = (Paid Revenue ÷ AOV) × Target CAC · Sustainability = Margin − Required Spend- Set realistic revenue + CAC + AOV based on last 90 days.
- Subtract organic share to focus on paid-only math.
- If margin remaining is negative, target is unsustainable — adjust before launch.
- Plan monthly; revisit quarterly as CPM environment shifts.
Frequently asked questions
What if required spend exceeds my gross margin envelope?
Either lower the revenue target, or lower CAC (creative + funnel work), or raise AOV (bundles, upsells). Without one of those, the plan is unsustainable.
How do I know my target CAC is realistic?
Pull historical CAC by channel from the last 90 days. Set target = current × 0.85 if expecting improvement, current × 1.10 if expecting CPM inflation. Don't assume best-case.
Should I plan paid + organic together?
No. Plan paid by paid CAC; organic compounds separately. Blended planning hides paid-channel weakness.
How does seasonality affect this?
Indian Diwali week CPMs rise 50–80%; plan 1.5x normal spend for same impressions. Off-season (Jan-Mar) often has 20-30% lower CPMs.
Want this applied to your business?
The tool gives the model. The audit applies it to your specific stage, ICP, and unit economics. Free 30 minutes.