--- title: What is Paid Marketing Spend? Why is it Important? Jirav description: Paid Marketing Spend refers to the amount of money a business spends on advertising and marketing campaigns to promote its products or services --- ![](https://www.jirav.com/hs-fs/hubfs/Imported%20sitepage%20images/header-logo.png?width=98&name=header-logo.png) - [ Resources ](https://www.jirav.com/resources) - Menu / Resources - [Resource Center ](https://www.jirav.com/resources) Blogs and resources on all things finance, FP&A, and Jirav [Webinars ](https://www.jirav.com/webinars) Learn more about Jirav and FP&A from industry experts [Events ](https://www.jirav.com/events) See our upcoming calendar of events [Help Center ](https://help.jirav.com/) Guide on how to use Jirav - [ Company ](https://www.jirav.com/company) - Menu / Company - [About ](https://www.jirav.com/company) Learn about Jirav’s story and meet our leadership team [News Coverage ](https://www.jirav.com/news) See the latest news and highlights [Press ](https://www.jirav.com/press-releases) Recent company announcements and updates [Careers ](https://www.jirav.com/careers) View current job openings and learn how to join the Jirav Tower ![business_env](https://www.jirav.com/hubfs/business_env.svg) [ For Businesses ](https://www.jirav.com/reporting-planning-purpose-built-for-businesses) ![accounting_calc](https://www.jirav.com/hubfs/accounting_calc.svg) [ For Accounting & CFO Firms ](https://www.jirav.com/reporting-planning-purpose-built-for-accounting-cfo-advisory-firms) [ Get a Demo ](https://www.jirav.com/request-demo) [ Sign in ](https://app.jirav.com/) ![](https://www.jirav.com/hubfs/April2021/images/banner-shap.png) BLOG # What is Paid Marketing Spend? Why is it Important? Jirav [![](https://www.jirav.com/hubfs/April2021/images/fb-icon.png) ](http://www.facebook.com/share.php?u=https://www.jirav.com/ecommerce-metrics-library/paid-marketing-spend/) [![](https://www.jirav.com/hubfs/April2021/images/tw-icon.png) ](https://twitter.com/share?url=https://www.jirav.com/ecommerce-metrics-library/paid-marketing-spend/) [![](https://www.jirav.com/hubfs/April2021/images/in-icon.png) ](http://www.linkedin.com/shareArticle?mini=true&url=https://www.jirav.com/ecommerce-metrics-library/paid-marketing-spend/&summary=&source=CeBIT) 1 minute read ![](https://www.jirav.com/hubfs/April2021/images/Resources-tile-pattern-giraffe@2x.png) ### What is Paid Marketing Spend? Paid Marketing Spend refers to the amount of money a business spends on advertising and marketing campaigns to promote its products or services. This can include various types of paid advertising like Google Ads, social media ads, sponsored content, and influencer marketing. Paid Marketing Spend can be an essential part of an ecommerce company's marketing strategy, as it allows them to reach a wider audience and drive more traffic to their website. ### Why Paid Marketing Spend Is Important Paid Marketing Spend is crucial for ecommerce businesses, because it can help increase brand awareness, drive traffic, and ultimately boost sales. By investing in paid advertising, businesses can target their ideal customers and reach them where they are most likely to engage with the brand. This can be especially useful for new or small businesses that do not have a large following or established brand recognition. In addition, Paid Marketing Spend allows businesses to track the success of their advertising campaigns through metrics like click-through rates, conversion rates, and ROI. By analyzing these metrics, businesses can make data-driven decisions about their advertising strategies and adjust them to optimize their results. ### How to Calculate Paid Marketing Spend To calculate Paid Marketing Spend, a business must first determine its advertising budget for a specific period, like a month or quarter. This budget should take into account the cost of various advertising channels, like Google Ads, Facebook Ads, and influencer marketing. Paid Marketing Spend = Advertising Expense directly targeted at increased traffic (i.e., Google Ads, Facebook Ads, etc.) ##### Jirav Published April 25, 2023 ###### Related topics - [Metrics library](https://www.jirav.com/ecommerce-metrics-library/tag/metrics-library) - [E-commerce metrics library](https://www.jirav.com/ecommerce-metrics-library/tag/e-commerce-metrics-library) ## Related blog posts ![](https://www.jirav.com/hubfs/April2021/images/Resources-tile-pattern-giraffe@2x.png) Metrics library #### What is Average Order Value (AOV)? | Jirav [ Read more ](https://www.jirav.com/ecommerce-metrics-library/average-order-value) ![](https://www.jirav.com/hubfs/April2021/images/Resources-tile-pattern-giraffe@2x.png) Metrics library #### Marketing Efficiency Ratio: How to Calculate it | Jirav [ Read more ](https://www.jirav.com/ecommerce-metrics-library/marketing-efficiency-ratio) ![](https://www.jirav.com/hubfs/April2021/images/Resources-tile-pattern-giraffe@2x.png) Metrics library #### Customer Acquisition Cost (CAC): How to Calculate | Jirav [ Read more ](https://www.jirav.com/ecommerce-metrics-library/customer-acquisition-cost) ![](https://www.jirav.com/hubfs/April2021/images/Resources-tile-pattern-giraffe@2x.png) Metrics library #### What is ROAS? How to Calculate Return On Ad Spend | Jirav [ Read more ](https://www.jirav.com/ecommerce-metrics-library/return-on-advertising-spend) ![](https://www.jirav.com/hubfs/April2021/images/Resources-tile-pattern-giraffe@2x.png) Metrics library #### What Is Contribution Margin? How is it Calculated? | Jirav [ Read more ](https://www.jirav.com/ecommerce-metrics-library/contributing-margin) ![](https://www.jirav.com/hubfs/April2021/images/Resources-tile-pattern-giraffe@2x.png) Metrics library #### Cost per Click (CPC) Explained & How It's Calculated | Jirav [ Read more ](https://www.jirav.com/ecommerce-metrics-library/cost-per-click) [Load more](##) ## Let’s get started! [ Request a demo ](https://www.jirav.com/request-demo) ![](https://ws.zoominfo.com/pixel/GayWM7nWYSEC9X3nq2tn) ```json { "@context" : "https://schema.org", "@type" : "BlogPosting", "author" : { "@type" : "Person", "name" : "Jirav", "url" : "https://www.jirav.com/ecommerce-metrics-library/author/jirav" }, "dateModified" : "2023-04-25T14:52:45.803Z", "datePublished" : "2023-04-25T14:52:45.000Z", "headline" : "What is Paid Marketing Spend? Why is it Important? Jirav", "mainEntityOfPage" : { "@id" : "https://www.jirav.com/ecommerce-metrics-library/paid-marketing-spend", "@type" : "WebPage" }, "publisher" : { "@type" : "Organization", "logo" : { "@type" : "ImageObject", "url" : "https://www.jirav.com/hubfs/Jirav%20Logo%20-%20176x75%20(small%20logo).png" }, "name" : "Jirav" } } ``` ```json { "@context" : "http://www.schema.org", "@type" : "AccountingService", "address" : { "@type" : "PostalAddress", "addressCountry" : "United States", "addressLocality" : "San Francisco", "addressRegion" : "CA", "postalCode" : "94102", "streetAddress" : "25 Taylor Street" }, "description" : "Jirav is a business planning software powering financial planning and analysis in the cloud with all-in-one forecasts, budgets, reports, and dashboards", "geo" : { "@type" : "GeoCoordinates", "latitude" : "37.782585", "longitude" : "-122.411255" }, "image" : "https://www.jirav.com/hs-fs/hubfs/Jirav_SitePageAssets_Feb2018/Jirav%20Logo%20for%20top%20nav.png?width=1200&height=510&name=Jirav%20Logo%20for%20top%20nav.png", "logo" : "https://www.jirav.com/hs-fs/hubfs/Jirav_SitePageAssets_Feb2018/Jirav%20Logo%20for%20top%20nav.png?width=1200&height=510&name=Jirav%20Logo%20for%20top%20nav.png", "name" : "Jirav", "openingHours" : "Mo, Tu, We, Th, Fr 09:00-17:00", "priceRange" : "$100/month-$750/month", "sameAs" : [ "https://www.instagram.com/gojirav/", "https://www.linkedin.com/company/jirav/", "https://twitter.com/GoJirav", "https://www.facebook.com/GoJirav/" ], "url" : "https://www.jirav.com/" } ```