How to Define an Advertising Budget in Telegram Ads

Recommendations for Setting an Advertising Budget and Optimizing Ad Spending

The success of a campaign in Telegram Ads largely depends on setting the right advertising budget. How can you determine the optimal budget and avoid unnecessary expenses? Let’s go over the key points.

1. Defining Campaign Goals

Before setting a budget, it is important to clearly define the goal of your ad campaign. The main options include:

• Brand awareness – Ads reach a wide audience.
• Traffic generation – Driving users to a website, channel, or bot.
• Conversions – Subscriptions, registrations, purchases, etc.

Goals directly influence the budget strategy. For increasing reach, the budget can be more flexible, whereas for conversions, it is important to consider the cost per acquisition (CPA).

2. Minimum and Recommended Advertising Budget

Telegram Ads operates on an auction-based model, with a minimum bid starting at €2 per 1,000 impressions (CPM). However, the actual cost depends on competition within the selected audience segment.

It is recommended to start with a budget of €500–€1,000 to gather initial data and adjust the strategy accordingly. For large brands in highly competitive niches, the budget may need to be significantly higher.

3. How to Calculate the Advertising Budget

To plan your expenses effectively, consider the following key metrics:

CPM (cost per 1,000 impressions) – Varies by niche, location, and competition.

CTR (click-through rate, %) – The average in Telegram Ads ranges from 0.5% to 2%.

CPC (cost per click) = CPM / (CTR × 10).

Conversion rate (%) – The percentage of users who take the desired action after clicking.

CPA (cost per acquisition) = CPC / Conversion rate.

For example, if CPM = €3, CTR = 1%, and conversion rate = 5%, then:

CPC = €3 / (1% × 10) = €0.30

CPA = €0.30 / 5% = €6

If your target CPA is higher than €6, you can adjust the budget by increasing bids or improving ad creatives.

4. Budget Optimization

To maximize results while minimizing costs, apply these strategies:

• A/B testing. Run multiple ads with different creatives and audiences to identify the most effective option.
• Geotargeting. CPM and CTR can vary significantly across different countries and regions.
• Precise audience targeting. Use detailed segmentation based on interests and demographics.
• Retargeting. Engage users who have already interacted with your content.
• Frequency capping. Limit ad exposure to prevent audience fatigue.

5. When to Increase or Decrease the Budget

Conclusion

Selecting a budget for Telegram Ads depends on your goals, targeting, and strategy. Start with a test budget, analyze the results, and optimize your campaign. A well-planned approach to budgeting will help you reduce costs and improve advertising efficiency in Telegram.