Help! What should my Facebook ad budget be?


It’s always tough setting a budget for advertising – there’s a lot of variables to consider. Today we’re going to discuss the ins and outs of setting a Facebook advertising budget that suits your needs by working backwards. So first, let’s start with the income that you’d like to generate from these ads.

Set a Goal

It may seem like an obvious first step, but defining a revenue goal for your campaign should be the first think you do. Often, we’ve found that organizations skip this step to try out a random Facebook Ad Budget like a $1,000 to “see how it goes”.

There’s nothing wrong with this approach, but most often the manager of this campaign will see some decent engagement with the ad and not make any connection to how this relates to actual revenue.

The best approach is to ask yourself “What do we have to spend to generate a certain amount of money through Facebook ads?”. This informs your ad planning process and helps you accurately asses your ROI.

ToLets say you wanted to make $5,000 in monthly revenue using Facebook ads for lead generation. If you made $500 from each sale, you’d need to make 10 sales per month.

But not every click is a sale. Let’s say just 1 in every 10 clicks results in a sale for you, meaning you’d need 100 clicks to make 10 sales. This means that every click is worth $50 (since you’re making $500 profit from 10 clicks).

You may not know these numbers exact numbers yet, but this is going to be your framework moving forward. Our plan will be to start things moving and then adjust as you go.

Create a Conversion Path

First make sure you have a Facebook pixel installed on your website to track conversions. From there, you’ll to configure Facebook Ads Manager to set up a Custom Conversion. You’ll need to enter the URL of the page you have your tracking pixel on – this should hopefully be fairly straight forward following Facebook’s step by step instructions.

Once this is complete, Facebook will be able to track how many people are converting from your website after clicking on your ads.

Create Your Ad Campaign

Your results are heavily impacted by your ad creative – make sure you are using your ad to speak correctly to your audience. Use great Calls-To-Action and send your audience to something that can provide them with value like a landing page with a free e-book or some important information that they can digest. If your ad creative and offering aren’t well thought out and proven, you will never hit your ideal spending goals and your campaigns will not be as effective as they could be.

Monitor Your Results

After you start running your ads, keep an eye on your Facebook Ads Manager. You’ll be able to see your costs by clicking the “Columns” button and selecting “Customize Columns” from the drop down menu. From here, select the columns you want to view and click apply.

Let’s suppose now that you can see that your ad is costing you $4.00 per click, not the $50 that it is worth as stated above (Eg: $1200 spent / 300 clicks = $4.00 per click). This would mean that you are getting great value from your ad campaign.

If your goal then, was to generate 100 clicks to make 10 sales, you’d know now that you only need to spend around $400 ($4.00 per click x 100 clicks = $400).


You don’t always know what your ads will cost you. But running your campaign and using simple math, you can quickly adjust your campaign and ad budget to suit your needs. There are many moving parts to running successful pay per click campaigns, and your ad budget should really be based on what works best for you and should come from analyzing and adjusting when necessary.

It’s also worth noting that Facebook ads are really only a good tool if you have landing pages set up, great marketing funnels and you’re sure that your website will convert.

Don’t have time to measure and adjust your own campaigns? Traffic generation, strategy and marketing funnels are just some of the many services we offer. Feel free to get in touch or schedule a quick call with us if you’d like to learn more.

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