Budget! This is the first consideration when running any business.

No budget, no business. Specifically, the Right Budget for Your Facebook Ads.

So, how is it then? For people who are using Facebook as their home to run a business, how could you have Facebook ads with a reasonable budget?

You can run ads on any budget on Facebook, Instagram, and Audience Network.

Some people spend more on coffee each day than they do on their advertising campaigns.

Before we learn how pricing works for your ads, let’s set a budget that works for you.

How much does it cost to advertise on Facebook?

The answer to this question depends on the goals and objectives of the campaign. And how much one is willing to spend. At MantraM, we work with small businesses, and we know that budgets are tight. So, while we will advise on the optimal budget, we are also adept at working around your budget constraints.

If you want to spend $5 a week, you can. If you spend $50,000 a week, you can do that too.

Note: Some types of advanced ads require a minimum amount of spend to work. You’ll be notified of this while creating them.

Facebook Ads Cost and Budgeting

Facebook advertising is paid with either pay-per-click or per 1000 impressions (CPM – Cost per Mille).

Budgets are set daily per month or CBO, which means that Facebook will try to use the given daily budget. In some cases, Facebook will overspend the daily budget, but it will average it out during a month.

Campaign Budget Optimization (CBO Campaign) is an option where Facebook will optimize and divide the usage of a budget within a campaign to gain the best results for the campaign.

Campaign Budget Optimization divides budgets between different ad groups and ads to favor the best-performing ones.

To learn more about how CBO works, click here.

Why is it Important to Know Your Budget?

A budget is the amount you want to spend to show people your ads. It’s also a cost-control tool.

It helps control your overall spending for a campaign or ad set. Comparatively, a bid strategy helps prevent your cost per result.

Hence, if you want to use Facebook to reach a wider audience, generate new leads, and convert more customers – Facebook ads are 100% worth it.

How do you determine your Facebook ads budget?

You have these two choices:

  1. Know how to divide your ad dollars between all of your ad sets (campaign budgets vs. ad set budgets)
  2. Know how each ad set spends its allotted money (lifetime budget vs. daily budget)

These budget options will help you make the most of your carefully earned advertising money, depending on the type of advertising campaign you are conducting.

As a beginner, budget between $1.00 -$3.50 per day as you run your first campaigns.

This low daily spend is essential, as you can see which ads are more effective and later increase ad spending accordingly.

How do you create a budget for Facebook ads?

1. Go to Ads Manager

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2. Hover over the ad set or campaign you want to edit. (Change your campaign budget if using campaign budget optimization. Otherwise, change your ad set budget.)

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3. Click Edit

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4. Change your budget

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5. Click publish and close

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How to Achieve an Ideal Facebook Ads Budget?

The perfect Facebook ads budget achieves your marketing goals without overspending.

These are practical steps on how to have an Ideal Facebook Ads Budget:

1. Consider Your Goals

Part of considering your budget is your goal. What do you want to achieve with all these efforts? Once you have a concrete goal settled in mind, then you can start spending on these ads.

There are three major categories when it comes to Facebook ad goals:

  1. Consideration – wherein your audience considers you as a solution to their problems.
  2. Awareness – bringing your audience’s attention to your services, product, or brand.
  3. Conversion – wherein you can convert your audience into customers

2. Understand How Much It Might Cost

Your Facebook advertising costs depend greatly on your industry, campaign objective, and many other factors.

Facebook bills advertisers based on two metrics: cost per click (CPC) and cost per mille (CPM)—otherwise known as cost per 1,000 impressions.

It’s hard to benchmark ad costs since there are so many variables in play. However, research suggests that advertisers should expect to pay:

  • $0.94 per click
  • $12.07 per 1,000 impressions

The average CPC on Facebook is $0.94, making it cheaper than advertising on LinkedIn, Instagram, or YouTube.

Seasonality and competition both play important roles in the cost of a winning Facebook ad auction bid, especially since many advertisers want a website visit. Run campaigns early in the year if high advertising expenditures are a worry.

3. Start Small and Track Your Metrics

Facebook requires $1.00/day for advertising. Get in the habit now of selecting a Lifetime Budget for each promotion, which will help keep costs down.

You can set a custom ad spend maximum with Lifetime Budgets. To get started, budget between $1.00 and $3.50 daily for your first campaigns. This low daily spend is vital because it lets you see which ads are more effective and increase ad spend accordingly.

Plan to boost four posts (1/wk) for only five days with a lifetime budget of $5 each. Start one on a Monday, the next on a Tuesday, then Wednesday, then Thursday.

After spending $5-10 on two ads over the first two weeks, you’ll have some idea whether or not the ads you’re promoting are effective. To evaluate performance, keep track of reach, impressions, clicks, and other types of engagement.

4. Ramp Up Ad Spending

After 5 days of testing various types of ads, it’s time for you to choose the best and most productive ads for you.

You can change your ad budget on Facebook by accessing the Facebook ad manager.

You can do so by following the steps above under “How to create a budget for Facebook ads.”

Increasing your online advertising spend or reactivating accounts is a process you must maintain.

5. Getting your Budget Consistently

We understand that budgeting isn’t the most exciting thing. However, getting your budget right consistently may be what your company needs to take things to the next level.

Align each ad campaign with your goals once you’re confident you understand the voice and style of the posts that resonate best with your audience.

Over time, you may increase your Facebook advertising budget as you can attribute leads or sales goals to your efforts. Just remember to be smart when scaling up.

Contact us today to discuss your advertising needs.

Last Updated on May 7, 2024