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title: 'Setting up ad budgets: CPM and daily budget strategies on Telegram platform'

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Telegram has become increasingly prominent as a communication and content-sharing provider, and this has presented exciting opportunities for advertisers. In this context, advertise on Telegram implies paid marketing on the website, which has a large user audience made up of channels dedicated to specific subjects. Advertise to users who actively communicate with each other offers numerous opportunities for brands. An understanding of the budgeting scheme used by the Telegram Ad Platform is critical for advertisers. It is now more important than ever to incorporate financial planning into your marketing strategy to obtaining a greater return on investment. Regardless of whether you are advertising a channel, a bot, or newer placement possibilities including [telegram mini app ads](https://adsgram.ai/), I can guarantee you from my 1.5 years of experience that you won’t be able to get an optimal return on your spend without product financial plans. The present paper will explain how to create and manage advertising budgets on Telegram, with a focus on the CPM and daily budget approaches. This article will give you the necessary indications to Choose a Strategy for Selecting CPM and Daily Budget on Telegram Ads Based On Your goals, geography of the target, and expected audience traffic.

### **Auction System and Budgeting Concepts**

The entire advertising system functions as an auction. Advertisers are required to bid a CPM, indicating the amount they are willing to pay for one thousand views of their advertisement. The most significant bidder for a specific ad slot wins an auction and has their advertisement placed before the channel’s subscribers. The pricing of advertising is not consistent across channels due to this competitive element. Instead, ad spend changes depending on the targeted audience’s business. The language of the target channels, the subjects covered, and the number of advertisers vying for the same attention determine the final CPM you must pay. Understanding this auction system is essential for establishing a budget that is both competitive and viable. Major Budgeting Concepts: CPM and Daily Limits The two essential parts of budget management on Telegram are mastering CPM negotiation and the daily budget. These two aspects operate together to ensure that you do not overspend on ad buying and control the campaign’s timing.

### **Understanding CPM Bids and Daily Budgets**

Your CPM bid is the maximum amount of money you are ready to pay for 1,000 impressions. When you launch a campaign, you specify your starting CPM. Telegram takes this number and joins you in an auction for placements that interest you. If your bid is higher than your opponents’ bids, your ad gets shown. In reality, you often enter a variation of a second-price auction, with the winner being the one that pays a small margin higher than the second bidder. The higher your CPM bid – the higher your chances of capturing ad placements become, especially in a highly competitive sector, category, or region. But a bid that is too high can spend your budget in a matter of hours without necessarily providing much better results. On the contrary, a bid that is too low can make sure that your ad gets shown once a month and goes unnoticed, accumulating nearly zero impressions. The daily budget is the maximum amount of money you want to spend on one ad campaign in a day. This feature acts as a vital safeguard that will ensure that you do not spend thousands of dollars in an hour. Once your campaign has spent the cash equivalent of your set daily budget on that day, it stops running in that period and continues the next morning. This way, you can predict your spending based on how long your ads will be shown. How much you should spend depends on your overall ad budget, your goals for the campaign, and the expected CPM for your target audience. For example, you might require a bigger daily budget if you want hundreds of millions of people to see your ads, but a more niche approach can bring better results with just a few thousand dollars per day.

## **Goal Alignment with Campaign Budget**

The first question you should ask yourself before allocating your budget is – what is the goal of your campaign? Goal determines strategy, and strategy defines the priority for CPM bidding and amount of your daily spend. Telegram campaigns can be vaguely divided into three groups according to the goal – awareness, consideration, and conversion. Awareness campaigns are campaigns where the quantity of the reach is your highest priority. You want as many relevant users to see your message to tell about your brand or new product. In this case, your priority is to win as much impression as possible. It means that you are choosing broader target audiences or larger channels and providing a high CPM to ensure your message is shown as often as possible. Your budget, in this case, should be large enough to fill enough impressions for those channels for the whole day. Consideration campaigns are campaigns where you want the user to engage with your brand. Your primary goal may be to get new subscribers to your Telegram channel, get the user to interact with your bot, or simply get to the content. In this case, your targeting needs to be more accurate than in the previous scenario. In terms of CPM, you want to keep up with your bid, but you must also calculate the result, the user’s cost per action. Your budget in this case might be smaller since your target is not just the number of impressions, but their quality.

### **Conversion Campaigns and Geographic Allocation**

Conversion campaigns: The purpose of this type of campaign is to drive a high-value, specific action on your website. These can be signaled by various events, such as a product purchase, a sign-up on another platform, or submission of a lead generation form. Since you are likely to get a lot of value from a single converted user, this type of campaign enables you to use the most precise targeting available and allows a higher CPM. The scale of such campaigns depends on the final CPA rather than the CPM. The daily budgets here can also be hugely varied. On one hand, some advertisers may prefer to spend very little and create highly optimized daily budgets. On the other hand, others, who have already proven to have a high ROI, may want to spend as much as necessary to capture every possible conversion.. 3. Strategic budget allocation by geography. Not all countries have the same prices for advertising. The cost of impressions on Telegram can differ significantly depending on the country. Most often the reasons for these differences are competition and economic factors. High-income countries and countries with highly developed digital advertising markets usually have the highest CPMs. Considered Tier 1, these markets often have the highest competition and the highest prices. On the other hand, countries with similar markets but less developed or fewer digital advertisers there deploy, have significantly lower CPM prices. It means that you can reach more users in these areas with the same budget. The first step is to consider these geographic nuances. Depending on the country, there may be several strategies so one could set a certain CPM bid and allocate most of their budget for the Tier 1 markets. Meanwhile, in the developing markets, you could go for the reach and spend less per impression relying your budget on volume. It would also be wise to have a campaign for every given country. If you run them all together you might get a few terrible impressions with exceptionally high prices in the US/Tier 1 and your budget there could be wasted. That is why it is essential to conduct research about the CPM ranges prevalent in your target countries.

### **Note on CPM Range Estimates**

The CPM ranges in the table are illustrative estimates and can fluctuate based on specific channel topics, audience targeting, and real-time auction competition.

### **Leveraging Traffic Estimates for Budget Pacing**

The effectiveness of your daily budget also depends on the traffic patterns of your target channels. While a channel with millions of highly active subscribers may generate enough impressions to exhaust a modest daily budget in a matter of minutes, a less active channel may struggle to spend the same budget over a full day. Before launching a campaign, try to potential impression volume. You can perform this step by analyzing the subscriber count and average post views of the channels you aim to target. The ad creation interface in Telegram may also provide estimates of your potential audience size based on your targeting selections. This potential traffic volume will also help you to set a realistic daily budget. If your budget is far too small compared to the potential traffic, your ad will be shown for a very small number of auctions, which may cause it to miss user activity peaks. In contrast, if the budget is hugely overestimated, you may end up spending inefficiently or failing to show your ad the whole day. A well-paced campaign will ensure that your ad is evenly distributed over the 24 hours in a day, thereby increasing its chances of being seen by users at different times. As soon as you start to get a sense of how your ads perform, you can comfortably adjust the daily constraints. However, let the campaign first pick up before beginning to raise your traffic limits. If you pause, volume will suffer rather than dreaming of too much. For example, if you find that you are satisfied with your restrictions during the first few days, you will get $50 a day. If you see the finances depleting continuously before nighttime, get ready to raise your ambitions to $150 per day or find a way to increase your click intensity.

### **Key Optimization Strategies**

- **Aggressively A/B Test**: Run multiple ads at once, with minor variations, to determine which ones perform best. Test different headlines, calls-to-action, and, yes, even emojis. Once you identify a clear winner, give it more budget and pause the others. This incremental testing is the easiest way to improve your ROI.
- **Adjust CPM Bids Carefully**: If your ads aren’t getting enough impressions, you may be bidding too low on your CPM. Only increase it slowly, incrementally, until you hit consistent delivery. If your CPM is very high, yet your results are weak, you may be overbidding; try lowering it slightly and assess whether or not your cost per result gets more efficient.
- **Refine Your Targeting**: Use your campaign data to refine who sees your ads. If specific channel topics are producing excellent results for pennies on the dollar, allocate more of your budget there. If a very costly and disappointing channel needs work or gets turned off.
- **Scale Thoughtfully**: The moment that you identify a solid combination of creative, targeting, and bidding that’s working, begin to scale. Incrementally increase your daily budget while watching performance data to guarantee that efficiency doesn’t decrease with higher spending.

### **Finalizing Your Strategy**

Now, I have shown you ads with different primary goals and recommended strategies for setting your daily budget and CPM. The formula In the table below is driven by your number of against your costs, so optimizing towards a weak CPM will always be a point of interest.

## **FAQs**

### **What is a good starting budget for Telegram Ads?**

There is no general “good” starting budget as it fully depends on your goals, industry, and target geography. However, a good rule of thumb is to start with a test budget of about €10-30 per day for a single campaign. In most cases, this sum will be enough to gather initial impressions and CPM data, and CTR results in a couple of days. If you target a very competitive market or massive audience, you may need a higher starting budget to get statistically significant results. The most important is to start with the sum that you are comfortable testing and be ready to adjust it based on the results.

### **How does Telegram’s auction system affect my budget?**

Your budget efficiency is mostly influenced by the auction system. You are at constant competition with other advertisers for the same audience. For example, a new competitor may enter an auction with a higher CPM bid – in this case your ad delivery would slow down or even stop at all. This is why you need to watch your campaign’s impression rate. If you notice that it suddenly drops – it is a good sign that your actual CPM is pretty low and you need to increase it to get back to the auction. In the opposite case, if other bidders quit an auction, you will get your ads delivered at a lower actual CPM and your budget will be stretched.

### **Can I set a total campaign budget instead fo a daily one?**

As of now, the Telegram ad platform adds daily budgets for each ad in the campaign. You’re unable to set a single budget for the entire campaign duration, for example, €1,000 to spend over 30 days. Instead, the only way to manage your total spend is to either set a daily budget and add a particular end date to the ad or simply pause it once your desired total expenditure is drawn. Although it’s more manual work, it allows precise control of your ad’s daily pacing.

### **How do I calculate the ROI of my Telegram Ad campaign?**

Calculating the ad’s Return on Investment is a figure in percentage that allows to count how much value did you get from your ads compared to the cost. The formula is: \[ \text{ROI}=(\text{Value Gained from Ads} - \text{Cost of Ads})\text{Cost of Ads} \times 100\% \] \[ \text{ROI}=\text{Cost of Ads}(\text{Value Gained from Ads} - \text{Cost of Ads}) \times 100\% \]. It’s clear when we talk about conversion campaigns; you track the revenue from sales that were attributed to the ads. But when it comes to consideration or awareness goals, it’s a bit trickier. You may have to assign monetary value to a new channel subscriber or a bot interaction, basing it on the long-term value it gives to your business. For example, if you know that 1 out of 100 new subscribers buys something from you at some point in the future, you can calculate an average value per subscriber and use it to measure ROI.

### **Why isn’t my daily budget being fully spent?**

There are a few common reasons why your campaign may not be able to spend its full daily budget. The most common is that your CPM bid is too low to win enough auctions. Additionally, your targeting may be too restrictive, so you have a small audience size and thus a small pool of available impressions. Delivery drops due to ad fatigue, where your audience has seen your ad too many times and stops engaging, are another major factor. To mitigate these issues, you can gradually increase your CPM bid, widen your targeting such as by targeting more topics or channels, or rotate your ad creatives.

### **What is the difference between CPM and CPC, and why did Telegram decide to use CPM?**

CPM, on the other hand, means you pay for every thousand impressions, regardless of whether the users click on the ad. While CPC, as previously stated, pay only occurs when a user actively clicks on the ad. Telegram decided to use CPM because it wanted its sponsored messages to be less intrusive and more integrated; its less obtrusive model means that the impression itself has little distinct value, and the advertiser’s goal is more frequently directed towards gaining exposure rather than eliciting a certain action in the recipient. Thus, a CPM model makes the auction process easier, and the platform can still be very effective.

## **Conclusion**

In conclusion, mastering budget strategies on the Telegram Ad Platform is a combination of strategic planning, constant testing, and data-driven optimization. Regardless of the level of financial commitments in your campaign goals, awareness, consideration, or conversion, financial commitments should be the root of success. To do this, understanding the nuances of CPM bidding, controlling pace through daily budget management, allowing for geographical expense differences represents the must-have set of skills for any advertiser on the platform. As usual, starting small with a conservative test budget, monitoring performance, and learning from the data to adjust the strategy according to real-world data are the three winning rules. Such strict discipline will allow you to succeed in a highly competitive environment and take full advantage of Telegram’s potential as a powerful advertising avenue.