How Much Should a Bangladeshi Business Spend on Ads? The Capital Allocation Formula
How to budget for growth based on Gross Margins, Average Order Value (AOV), and customer lifetime value rather than arbitrary guesses.
Sarah Chen
Head of Strategy & Intelligence
The Flawed Percentage-of-Revenue Myth
Many business owners in Bangladesh ask: 'Should I spend 10% of revenue on ads?' The reality is that marketing budget should be determined by Contribution Margin per unit and Maximum Allowable Acquisition Cost (MAC).
The Unit Economics Math
If your product sells for ৳2,000 with a cost of goods of ৳800 and courier cost of ৳150, your pre-marketing gross profit is ৳1,050. If you are willing to allocate ৳450 to acquire a new customer, you maintain a ৳600 profit per order and achieve a break-even ROAS of 1.9x.
Related Growth Dispatches
Facebook Ads Cost in Bangladesh (2025): CPMs, CPCs, and Profitable Scaling Benchmarks
An empirical analysis of over ৳65 Crore in managed Meta ad spend across Bangladeshi e-commerce, real estate, and consumer brands. What CPMs to expect and how to keep CAC under control.
Conversion & CROWhy Your Facebook Ads Don't Convert: 5 Critical Bottlenecks & The Solution
From broken landing page loading times on 4G networks to unverified COD orders, here is why Bangladeshi ad campaigns fail to generate real profit.
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