Introduction
Find out how your can optimizing your Facebook ad budget with this guide, that includes a free ad spend calculator! Balancing your Facebook ads budget can be tricky. Spend too little and you risk missing out on conversions. Spend too much and your monthly marketing budget will disappear.
This guide will help you make the most out of every ad dollar. It explains budget types and shows you how to never second guess your Facebook ads budget again by optimizing your Facebook ad budget.
At the end of the guide, you’ll find our free Facebook Ads Budget Calculator. It can tell you exactly how much to spend on Facebook ads to hit your marketing goals. Whether you’re a large or start-up company looking to increase impressions or make more sales, you can figure out exactly how much to budget so your next ad campaign is a success.
Types of Facebook Ads Budgets
There are two main types of Facebook Ads budgets: Campaign Budget and Ad Set Budget. Let’s take a look at each of them.
Campaign Budget vs. Ad Set Budget
Campaign budgets are used to allocate funds across all ad sets in a campaign. This means that Facebook will automatically distribute the budget across all the ad sets based on their performance. Campaign budgets are best suited for businesses with a single objective, such as generating leads or driving sales.
On the other hand, Ad Set budgets are used to allocate funds to individual ad sets within a campaign. Ad Set budgets are best suited for businesses with multiple objectives, as they allow for more control over the distribution of funds.
Lifetime Budget vs. Daily Budget
Lifetime Budgets are used to set a total budget for an entire campaign, which is then divided over the campaign’s duration. These budgets are best suited for businesses with specific marketing objectives that require a specific budget, such as launching a new product.
Daily budgets, on the other hand, are used to set a daily spending limit for a campaign. These are best suited for businesses that want to keep their spending under control and monitor their daily performance.
Optimizing Your Facebook Ad Budget
Step 1: Consider Your Goals
The first step in finding your perfect Facebook Ads budget is to consider your marketing objectives. Facebook Ads offers three main objectives: Awareness, Consideration, and Conversion.
- Awareness: If your objective is to increase brand awareness, you should focus on campaigns that increase your reach and frequency. These campaigns are best suited for Lifetime Budgets, as they require a specific budget over a specific duration.
- Consideration: If your objective is to drive website traffic or engagement, you should focus on campaigns that generate clicks, likes, and shares. These campaigns are best suited for Daily Budgets, as they allow for more control over the spending.
- Conversion: If your objective is to generate sales or leads, you should focus on campaigns that drive conversions, such as add to cart, purchases, or lead generation. These campaigns are best suited for Campaign Budgets, as they require a single objective.
Step 2. Understand How Much It Might Cost
The cost of Facebook Ads varies depending on several factors, including your target audience, the type of ad format, and the competition within your industry. Here are some average costs per result to consider for the first three quarters of 2022:
- The average cost per click (CPC) is around $0.97 for all industries.
- The average cost per like (CPL) is around $0.45 for all industries.
- The average cost per app install (CPI) is around $2.63 for all industries.
It is important to keep in mind that these are just averages, and the cost of your ads may be higher or lower depending on various factors. Always test your ads to find out what works best for your business.
Step 3. Start Small and Track Your Metrics
Starting small and testing your ads is a great way to determine what works best for your business without breaking the bank. Here are some key metrics to track:
- Cost per result (CPR): This metric measures the cost of each action taken on your ad, such as a click or conversion.
- Cost per thousand impressions (CPM): This metric measures the cost of showing your ad to a thousand people.
- Click-through rate (CTR): This metric measures the percentage of people who clicked on your ad after seeing it.
- Conversion rate: This metric measures the percentage of people who completed a desired action, such as making a purchase or filling out a form.
Tracking these metrics will help you determine which ads are performing well and where you should allocate more of your budget.
Step 4. Ramp Up Ad Spending
Once you have tested your ads and have a good understanding of what works best for your business, it’s time to ramp up your ad spending. As you scale your ad spend, it’s important to continue tracking your metrics to ensure that your ad campaigns are still performing well. You may find that you need to adjust your budget allocation as you scale your ad spend to ensure that you are getting the most out of your advertising dollars.
How Much to Spend on Facebook Ads: Our FREE Ads Budget Calculator for Leads and Products/Services
There is no one-size-fits-all approach when it comes to ad budgets and ad quantity. The right budget and quantity will depend on several factors, including your business size, advertising goals, industry, and target audience. However, here are some general recommendations based on the type of business:
| Type of Business | Daily Ad Budget | Ad Quantity |
|---|---|---|
| New Businesses | $5-$10 | 2-3 ad sets |
| Established Businesses | $20-$100 | 5-10 ad sets |
| Small Companies | $10-$50 | 3-5 ad sets |
| Large Companies | $100-$500 | 10-20 ad sets |
Work out how much to can and should spend on your Facebook Ad Campaign. Using our free calculator you can quickly optimizing your Facebook ad budget Our Free download includes 2 calculators, 1 for Lead Ads and 1 for Product Service Ads.
The calculator should be simple enough to follow, will have filled it out with examples to get you started!
Inputs, These include:
- Your revenue goal
- The price of your product/service:
- CPM
- CTR
- Conversion rate
Outputs, These include:
- CPC
- Clicks you need to reach your revenue goal
- Sales you need to reach your revenue goal
- CPA
- Overall budget
