How to Determine an Ideal Facebook Ads Budget?

July 25, 2021 0 Comments

How does a social media advertiser define Facebook ads budget? It is a crucial question because spending too little can risk the opportunities for conversion. On the other hand, overspending can make your monthly marketing budget vanish in thin air. In this post, let’s understand Facebook ads budget types and how to set a correct one to leverage on each ad dollar.

The consultants at Australian Internet Advertising are experienced and have been helping business owners in their Google Adwords and FaceBook advertising projects.

Facebook ads budget types

You will gain two options to determine your FB ads budget.

Campaign budget versus Ad set budget

If you plan to have multiple ads running on FB simultaneously, then choose one from the campaign or ad set budget. Campaign budgets are ideal for marketers who are interested in campaign-level optimization and manage with plenty of ad sets. In the campaign budget, the Facebook algorithm [CBO] determines, which ad sets will take home the most returns. Unfortunately, the algorithm is not aware of which ad sets carry value beyond surface-level metrics.

With an ad set’s budget, advertisers can control the amount of money to spend on each ad set. It is perfect for those who test ads performance, have valuable ad sets not obvious to the bidding algorithm, and plan ad campaigns with mixed campaign goals or audiences. Unfortunately, you need to closely monitor and optimize your bidding strategy.

  • Lifetime budget versus daily budget

After you determine how to split the budget between ad sets, it is time to decide budget duration. A lifetime budget is ideal for running an ad campaign with a defined end date & budget and running a short yet more targeted campaign. Facebook will choose appropriate time to display your ads. It is the best option if daily consistency is not your major issue.

Alternatively, a daily budget sets the average amount to spend daily. Facebook offers its best to hit the target. Every day, FB can average around 25% in case they feel that they can receive more value with a little shift. Daily budget is perfect for marketers who desire daily consistency and are trying to build brand awareness.

Each budget types have its advantages and disadvantages. The best one to choose depends on your campaign goal.

How to determine an ideal Facebook Ads budget?

An ideal Facebook ads budget is designed to attain your marketing goals without under or over-spending.

Consider your goals

Determine and settle on concrete goals to achieve success in your FB marketing efforts. Campaign goals are split into three broad categories.

  1. Awareness
  2. Consideration
  3. Conversion

While setting your ad campaigns, choose one of the above objectives for Facebook to optimize your ads.

Understand the cost

Facebook ads operate on an auction system. Relevant ads with high value and other factors like target market, your goal, time of day, etc. can change the costs of your Facebook ads. Some goals are costlier than others. It means if your goal is to create ads to increase impressions then it will cost more than link clicks. Choosing an inappropriate goal will be waste of time and money. Therefore, confidently go after the best campaign budget.

Start small & monitor 

Testing allows identifying the worthy ads and eliminating the unworthy ones. Start small across 3 to 5 days and see how different each ad set performs. Running your ad for a long time allows collecting more data, which helps to evaluate campaign efforts. Some key metrics to consider are –

  • CPR or Cost per result
  • CPM or Cost per thousand impressions
  • CTR or Click-through rates
  • Conversion rates

Data collection will help to see the best perming ads and you can roll the ad campaign efficiently.

Increase ad spend

After 5 days, you will gain an insight into your ad strategy. If it is efficient then ramp up ad spend to achieve your goals. Optimize campaign based on ad performance. You gain practical knowledge on how to optimize your FB ad strategies.


Setting a Facebook ad budget is daunting at the start, which gets easy with practice. Once you gain familiarity with how it works then you gain the most from every FB ad campaign. Budgeting is not an exciting thing but getting it right is what your business needs to take it to another level. It can help your sales jump and your brand grow.