How much should I spend on Facebook ads in 2024? This is an important question for most of the marketers and advertisers out there. 

But if you’re not already having a Facebook ad cost, then it’s time for you to spend on this powerful platform. 

According to a report, Facebook has around 3 billion monthly active users. This indicates that it can help you reach a broad audience.

In this blog, we will help you get the answer to your question, how much should I spend on Facebook ads? 

We will discuss the types of Facebook ad budgets and how to set one for your business. Keep reading to learn the best ways for Facebook ad budgeting. 

Types of Facebook ad budgets

How much to spend on Facebook ads? To manage your Facebook ad spend, you need to decide on an appropriate budget. 

Facebook allows advertisers to manage and control their Facebook ad budget. Here, we will give you the two types of Facebook ad budgets.

Campaign and ad set budgets 

Facebook allows you to set an overall budget for your campaign or individual budget for different ad sets. 

If you’re choosing to set an individual budget for different ad sets then you should consider your total Facebook ad budget. 

Campaign budget allows you to decide the total budget for the campaign. This way the ad set that performs the best receive more fund. 

If you aren’t concerned about how your budget is spent among different ad sets. Then, the campaign budget strategy is right for you. 

It also doesn’t require much effort from your side and helps in reducing your Facebook ad spend.

You can also choose to set individual ad set marketing budgets. This will allow you to decide how much you spend on each ad set. This ad set budget strategy is right for you if your bidding strategy differs between sets.

You can test both campaign and ad set budget strategies to determine which is best for your business. 

Lifetime and daily budgets

Facebook allows you to choose the duration of your Facebook ad budget. You can select between a lifetime or daily budget.

Daily budget is when you set the average ad spend per day. This is a good choice if you want to spend the same amount per day. Daily budgets are a bit flexible and can waver moderately from day to day. 

A lifetime budget refers to setting up the total amount for Facebook ad spend from start to finish. 

This budget strategy is great for you if you aren’t concerned about how much you spend each day. 

Lifetime budgets are a hard cap as they don’t exceed the Facebook ad budget that you have set. 

Related: How to share Facebook post to Instagram

How much should you spend on Facebook ads? 

Now, we will tell you exactly how much to spend on Facebook ads. These examples will help you determine your Facebook ad budget. 

1. Set a daily budget of $15 or less 

Facebook ad campaigns are a trial-and-error thing. The more you run Facebook ads, the better you understand what works for your business and what doesn’t. 

If you are just starting with Facebook ads then spend a daily budget of $15 or less for running 20 ad sets for a week. 

However, keep in mind that you will be spending around $2000 or more. This will be more like a test to help you determine an appropriate Facebook ad budget. 

Once you get enough data and knowledge, you can optimize and launch effective Facebook ad campaigns. 

Distribute your ad budget equally in all ad sets so that all of them have a fair opportunity. Next, determine which of the ad sets got the highest engagement and clicks. 

From this, you’ll get information about what works best for your target audience. 

2. Consider spending 6% of the revenue on ads 

Most businesses and advertisers struggle to determine how much to spend on Facebook ads. Reports suggest that a business should spend about 6% of its revenue on ads. 

How much should you spend on Facebook ads also depends on your target audience. If the majority of your target audience is available on Facebook then you must put ads over there. 

Facebook ads are a good way to reach out to your target audience on a limited budget. You can set the budget and be sure that you’ll get results out of it.

Start with a low budget to know which type of ads perform the best. Then, you can optimize ads and reduce your Facebook ad spend. 

Investing in Facebook ads is cost-effective and effortless as you’re sure to get results even with less or no expertise. 

3. Expect to spend around $20 to $200 daily 

If you have a small business and you’re just starting with Facebook advertising then you need to spend more. 

To get immediate results, you must spend around $20 to $200 daily for a small business. As per a report, businesses that start with this amount can expect to see better results than those who start with a lesser amount. 

However, this is just an average cost of Facebook ads. Businesses that have low competition and specific audiences might get even better results at lower costs. 

You constantly need to evaluate your ad campaigns to decide an apt Facebook ad budget for your business. 

4. Spend minimum $5k monthly 

How much should you spend on Facebook ads? According to a report, spending less than $5k per month will lead you to not providing enough data to Facebook pixel to get traction. 

It is suggested that you should spend a minimum of $5k monthly to get results from Facebook ads. This is even more important for medium to large-sized businesses to spend $5k monthly in the beginning.

You can start with a broad audience first as it takes time for Facebook algorithms to find the right audience that will convert. Afterward, you can narrow down your audience based on the results you get. 

5. Keep your Facebook ad spend enough to achieve 50 purchases/week

Many times customers add products to their cart but they don’t end up making purchases. Nonetheless adding products to the cart is an important step before completing a purchase. 

You should keep your Facebook ad budget enough to get at least 50 purchases per week.  For example, if your average cost per purchase is $5 then you need to have a Facebook ad budget of $250 per week or $1000 per month.

6. 5-10% of the profit 

How much should I spend on Facebook ads? The amount that you spend on Facebook ads depends on various factors such as goals, target audience, industry, and so on.

One business might need to spend a large amount to get results out of Facebook ads while the other might spend a small amount and still get results. 

For most businesses, it is recommended to start with a limited budget and increase it over time depending on the results.

You can put 5-10% of profit in your Facebook ad budget to give it an effective start. It is not too much or too little to start with Facebook advertising. 

However, if we come to the numbers then we can say it is good to start with $10-15 per day. You can manage your Facebook ad budget based on the performance of ads. 

Remember that your Facebook ad budget need not be rigid, it should be flexible. Keep track of results at first, summarize the effects, and adjust your budget accordingly. 

7. Spend a minimum amount on Facebook ads 

If you are just starting and Facebook ad spend seems a risk to you then start with a minimum amount. Just take the $1 per day amount and it will still make a difference.

According to statistics, the average Facebook CPM in 2023 is $8.77. If you set $1 as the daily budget then the number of impressions can be calculated as:

Impressions per day= ($1 X 1000)/ $8.77 = 114.02 

This means that with an average CPM of $8.77 and a $1 daily budget, you can expect to get 114 impressions per day on average. 

Start with $1 per day to get an idea of how the Facebook ad works. You can get the most out of your lower ad budget by targeting the bottom-of-the-funnel audiences. 

By this, we mean targeting the people who are already aware of your products or services. For example, past purchasers, abandoned cart visitors, and so on. 

Common Facebook advertising mistakes to avoid

In this section, we will discuss the common Facebook advertising mistakes that many advertisers and marketers make. By avoiding these mistakes you can make the most out of your Facebook ad spend. 

1. Give it time 

Most marketers don’t give enough time to their Facebook ad campaigns. You need to give it time to get access to that initial data.

Data can tell you about what needs adjustments and how you can improve it. You can find out how much time it takes for a prospect to become a customer. 

For businesses with a short buying cycle, it is easier to track data. They can adjust their Facebook ad budget based on the results they are getting. 

However, if your purchase cycle is 4 months long then you need to give it that much time to evaluate your return on ad spend. 

2. Not spending enough 

Your Facebook ad spend needs to be enough to help you understand the size of your audience and cost per lead. 

When your Facebook ad budget is less it gets distributed in a very thin layer over your different ad sets. This may lead you to generate a few to no leads per day.  

Therefore, you need to start with a significant budget to better understand your cost per lead or conversion and see results quickly. 

3. Not focusing on the ad objectives 

Sometimes marketers don’t focus on the campaign types and ad objectives. However, it’s crucial to focus on those to get the best results from your Facebook ad budget. 

You should align ad objectives with your marketing goals to strategize better. For example, if you want to do brand awareness then you shouldn’t take the lead objective. 

Ensure that you set the campaign type and ad objective exactly for what you want to achieve through Facebook ad spend.

4. Analyze the data precisely 

The last major mistake that you should avoid making is not analyzing the Ads Manager data precisely.

Data can help you find the gaps in your Facebook advertising strategy. You can also customize the data columns and see the relevant ones in your reporting. 

Keep the data columns that help you in making crucial decisions. You can see which Facebook advertising campaigns are generating leads or sales and which aren’t. 

How to optimize Facebook ad spend with ProMarketer.AI?

Now, we will tell you how you can optimize your Facebook ad spend with ProMarketer.AI. This ads automation tool helps you create, manage, and optimize ads across different platforms. 

Reduce your Facebook ad spend 

Set automation rules and autopause underperforming ad campaigns. Reduce your Facebook ad spend by avoiding investing in campaigns that don’t deliver results. 

Run ads only during the right time

Find out the timings when your ads receive the highest online customer engagement and conversions. Run your ads only during that duration and make the maximum out of your Facebook ad budget. 

Increase budget on high-performing ad sets 

Optimize your Facebook ad spend based on the performance of ad sets. Automatically invest more budget in the high-performing ad sets with ProMarketer.AI.

Create ads similar to your top-performing campaigns 

Know which are your top-performing ads and create similar ones. ProMarketer.AI helps you generate hundreds of ad copies with just one click. Improve your ads and get better results.  

How much should I spend on Facebook ads?- The Conclusion 

How much should you spend on Facebook ads? Well, the answer to this question depends on various factors like your marketing goals, target audience, industry, and so on. 

Having an apt Facebook ad budget is important to achieve your desired outcomes. You can start with a modest budget and gradually increase it based on your expertise. 

ProMarketer.AI by WebMaxy is a PPC management software that helps you reduce your Facebook ad spend. You can optimize your ads in real-time and drive better results.

Learn more about ProMarketer.AI and its features from our experts, connect with us at info@webmaxy.co.