It will depend on what you are looking to get out of advertising - immediate sales or engagement/awareness.
If you are an eCommerce business selling a widget then you can easily get a cost per conversion, and then it's pretty easy to optimise your spend to maximise profits (i.e. If I spend $30 on ads, I can sell a product I buy for $40 for $90 making $20). I've seen businesses with this revenue model who will spend the equivalent of c.30-40% of revenue to get the sales due to the high margins often involved.
Your conversion will depend a lot on your product, target market, the ad etc (if you are selling a business rolodex your CPC might be better on linkedin, if you are selling a selfie-stick your CPC might be better on insta etc).
The effectiveness of advertising for engagement/brand awareness is much softer, and the spend will be much more discretionary as it is harder to track. It's these ads which are more likely to fall away IMO.
If you are an eCommerce business selling a widget then you can easily get a cost per conversion, and then it's pretty easy to optimise your spend to maximise profits (i.e. If I spend $30 on ads, I can sell a product I buy for $40 for $90 making $20). I've seen businesses with this revenue model who will spend the equivalent of c.30-40% of revenue to get the sales due to the high margins often involved.
Your conversion will depend a lot on your product, target market, the ad etc (if you are selling a business rolodex your CPC might be better on linkedin, if you are selling a selfie-stick your CPC might be better on insta etc).
The effectiveness of advertising for engagement/brand awareness is much softer, and the spend will be much more discretionary as it is harder to track. It's these ads which are more likely to fall away IMO.