How Much To Spend On Facebook Ads?

In this guide, I will cover how much you should spend on Facebook ads as a beginner when you’re just getting started with Facebook advertising. Obviously, this can be a bit tricky to figure out and even experienced marketers find it challenging! But the best way to learn Facebook ads is simply to dive in and get some experience with it.

You will make some mistakes along the way, but don’t worry! It’s part of learning how to run successful ads on Facebook.

What Is A Facebook Ads Budget?

A Facebook ads budget is the maximum amount of money you are willing to spend on showing your ads to potential customers. There are two types of budgets: per day (daily budget) or for the duration of your campaign (lifetime budget). Based on what you are trying to achieve, it might be a good idea to have a daily or lifetime budget for your ads campaign.

Keep in mind that your Budget is not the same as what you actually spend on Facebook advertising, i.e. your Ad spend on Facebook. You can set the Budget in the ads manager at the following levels:

Ad set: The default and most popular setting that has existed since the early days of the Facebook Ads platform. By using ad set budget, Facebook will attempt to spend the full budget across your ad sets although conversion rates vary.

This means that you need to analyze your ad sets to determine which ones are performing well and which ones are underperforming. When you know this, you can adjust the budget for your ad sets manually to boost the profitable ad sets.

Campaign: One of the most recent options available in the Facebook ads manager. The Campaign Budget Optimization feature lets you specify a budget per campaign and then the algorithm will ensure that the most effective ad sets get more of the budget while lowering the budgets for the underperforming ones.

Minimum Budget Requirements For Facebook Advertising

Before we explain how much you should spend on Facebook advertising it’s important to note that you’ll need a certain budget in order to run your ads consistently. You can choose from these options:

  1. If you pay for impressions, a 1$ daily budget for Facebook ads is required.
  2. If you decide to pay for video views or clicks, you need a $5/day Fb ad budget.
  3. You will need a minimum daily budget for Facebook ads of 40$ if you decide to promote offers, app installations, etc.

A major reason for the difference between the minimum budgets for each type is that the most popular advertising methods (such as pay per impression and pay per click) allow Facebook to collect data faster and deliver ads more consistently in contrast to conversions that happen less frequently such as app installs and purchases. So, here is what you can expect to pay per month based on the Facebook minimum budgets:

Pay per impression: Minimum monthly budget 1$/day * 30 = 30$

Pay per click: Minimum monthly budget 5$/day * 30 = 150$

Pay per conversion: Minimum monthly budget 40$/day * 30 = 1200$

What Is A Good Starting Budget For Facebook Ads?

If you’re wondering how much to spend on Facebook ads per day, a budget of $1 is a good starting point.

In the United States, the average cost per thousand impressions (CPM) is around $9.70. This means that for $1 spent, you could have 103 people see your ads on a daily basis. In other words, for $1 a day, you’ll get about 37,595k ad impressions in a year!

Running low budget Facebook ads is a good way to start and get a better understanding of how it works without breaking the bank.

For the greatest return on your Facebook marketing budget, you should target audiences that are at the bottom of the funnel such as past customers, people who added items to their cart but didn’t convert, or your website visitors.

However, Don’t expect that spending $1 a day on Facebook ads will make your business boom. This is just a low budget Facebook ads strategy for testing and trying things out in the Facebook ads manager.

You should be excited when you have a low-budget campaign that performs well. Your campaign may not be making a lot of money, but it is easy to scale your advertising budget when you start making sales.

A bigger budget can have a significant impact on your earnings. There is the potential to increase the amount spent daily from $1 to $600 or more. If your ROAS does not drop off when you are increasing your budget, your income will increase substantially.

Important note: $1 a day is a test budget, and it should be used to figure out what works and what doesn’t work before scaling. Additionally, never use more money than you can afford to lose while testing. The profitability of your campaigns cannot be guaranteed.

Scaling Your Facebook Ads Budget

Spending $1 a day is only the beginning, But you need to spend more to get the most out of Facebook’s intelligent algorithms. Here are some steps you can follow when you’re scaling your Facebook advertising budget:

Step #1: Define Specific Target Audiences For Your Ad Sets

Although you might have one big and broad audience, you can probably divide it into smaller audiences. For example, if you own a sports store you may be able to reach a wide range of customers. You could have football players, track runners, tennis players, etc.

In order to target each of these audiences effectively, you will need to create specific Facebook ad sets for each of them. This is why it’s important to define specific target audiences right away.

Step #2: Create different ad sets for each target audience

After you have defined multiple target audiences, the next step is to create different ad sets that are relevant to each audience. Make sure your graphics are appealing to them and include calls-to-action to get them to take action.

Additionally, make sure the language you use is appealing to the audience you are addressing. The language you use is likely to be different across ad sets depending on which audience you are targeting. However, don’t be surprised if some of it overlaps.

It’s important to keep in mind that diverse ad sets are beneficial.

As an example, you might want to try different types of graphics for each ad set in order to identify what works best for your audiences. Additionally, you can use animated gifs and videos in your ads to maximize your engagement.

Step #3: Identify Your Most Effective Ad Sets

After running multiple ad sets for a while, you can gain a great deal of useful information by checking their performance.

Look at the highest converting ad sets first. By analyzing these ad sets you will be able to see:

  • Which audiences you should be targeting in the future.
  • What kind of graphics your audience like (based on the most clicked ad in the ad set).
  • What Call To Action works best.
  • What kind of language resonates with your target audiences.

Why You Should Use Campaign Budget Optimisation (CBO)

With Campaign Budget Optimisation (CBO), you can set a campaign-level budget for Facebook to distribute across your ad sets based on their performance. Facebook can then use machine learning to serve ads based on the ad sets that are likely to perform best.

By using CBO on Facebook, you can save time by utilizing automation and optimizing your Facebook marketing spend to get the best results.

You should be aware that CBO can be sensitive to differences in audience sizes. Let me give you an example:

In a campaign with three ad sets, 1 with an audience of 50,000 users, 1 with an audience of 100,000 users, and a third ad set with 10 million users, you can expect Facebook to spend most of your budget on the biggest audience because it will have the most potential for conversions. It doesn’t matter how many conversions you get from the smaller audiences.

Using daily minimums and maximums can give you some more control if your audience sizes vary. For example, you can specify that one of your ad sets can spend up to a specific amount, while the others must spend a minimum amount of money on a daily basis.

Pro tip: Instead of managing all of your Facebook ad budgets manually, you can let Facebook manage some of your budgets across your ad sets. This way you get to keep some control over how your budget is spent and still get the benefits of Facebook’s machine learning algorithm.

Tips for Facebook Campaign Budget Optimization

Here are some tips for using Campaign Budget Optimization (CBO), to get the most out of your Facebook campaigns:

Target broad audiences

The algorithm is able to make more precise and calculated decisions when it comes to distributing your campaign budgets based on broad audiences. With larger audiences comes more metrics, which means that the algorithm will have more data to work with in the ads learning phase.

Targeting larger audiences basically means that you need to rely on Facebook’s delivery system to show your ads to the right people. By using this approach, you may find customers you wouldn’t have found otherwise. It still requires that you use some basic targeting parameters, but it’s a great option if you don’t know who to target with your Facebook Ads.

Use a limited number of ad sets

According to Facebook, having more than 70 ad sets limits your ability to edit ads after they have been published and slows down the algorithm’s performance. As a result, it makes it harder for Facebook to optimize your ad budget to improve the overall performance.

Keep in mind that Facebook ad accounts with a lot of campaigns, ad sets, and ads can be hard to manage. It can also lead to inefficiency, high costs, and bad returns on ad spend.

Each CBO campaign can have up to 200 ad sets (both active and inactive). Having 200 ad sets in a campaign will prevent you from duplicating or adding any additional ad sets.

If you are running out of space, You can simply delete some ad sets or create a copy of them in a new campaign and then delete the duplicates from the original.

Keep your ad sets running

Campaign Budget Optimization runs automatically, using active ads to distribute your ad budgets. By pausing certain ad sets, the algorithm will not factor in their data, which will redirect your Fb ads budget to other ad sets.

As an example, if you’re pausing one of two ad sets in a campaign, the system will assign the entire budget to the active set. As soon as you activate that other ad set and it starts running, your budget might be spent.

Don’t limit the Facebook algorithm

Campaign Budget Optimization is most effective when the algorithm is allowed to do its thing without too many restrictions in the ads learning phase. By limiting your ad spend too much, the algorithm will be less flexible, and budgets won’t be optimized properly.

In case you prefer to set strict limits and optimize each ad set separately, You should use Ad Set Budget Optimization (ABO) Instead. This will help you optimize each ad set separately, based on how much you’re willing to spend.

When you use ABO, you can also set a max Cost Per Click limit for each ad set, so that if your ads are performing poorly, you can easily adjust them back down to the cost-per-click you are willing to pay.

Frequently Asked Questions

What Is A Good Daily Budget For Facebook Ads? 

You can get some pretty decent results even if you run Facebook ads on a budget. We recommend spending at least $5 per day as a starting budget to kick things off. You shouldn’t expect to see sales right away, but it can happen. If your campaigns don’t perform well you should consider optimization and split testing to improve your return on ad spend.

How To Spend Less On Facebook Ads?

Setting a lifetime budget and an end date for your campaigns is a great way to minimize your Facebook ad spend. If you don’t do this, you can lose control of your advertising budget very quickly. You can set a budget for each ad, or you can set a budget for the total spend on your campaigns.

Does Paying For Facebook Ads Work?

Using Facebook ads can be a very powerful way to market your business and it definitely works. But, If you don’t know what you’re doing, they can be very expensive and a waste of your time. Remember that no one starts out as a Facebook ads expert, so don’t feel bad if your first campaigns fail. If you keep at it, learn from your mistakes, and continually improve your results you will become an expert! 

Conclusion

An essential part of making the most of your low-budget Facebook campaigns is to keep optimizing them. In order to get better results, it is important to spend less on ads that aren’t performing and to increase the budgets for the ad sets that are performing well.

As you set your first budget for Facebook ads, you need to find the right balance. It is important that your minimum budget is low enough so that you can afford to lose it without getting anything in return but high enough to actually see some results.

Small businesses might pay $30 per month or $180 over six months. That amount will likely be higher for larger businesses.

A balance between risk and reward is crucial with Facebook Ads. Losing money on testing campaigns is never fun, however, if the campaign ends up generating sales consistently it’s absolutely worth it.