![\"cover](\"https:\/\/adespresso.com\/wp-content\/uploads\/2021\/02\/facebook-ads-budget-1024x536.jpg\")
<\/p>\nSpend too little on your Facebook ads budget and risk missing out on conversions. Spend too much, and your monthly marketing budget will vanish into thin air. What\u2019s a social media marketer to do?<\/p>\n
Never second guess your Facebook ads budget again! This guide tells you what you need to know about Facebook ads budgets\u2014from explaining budget types to showing you how to make the most out of every ad dollar.<\/p>\n
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We\u2019ve also included our free Facebook Ads Budget Calculator<\/a>, which can tell you exactly how much to spend on Facebook ads to hit your marketing goals.<\/p>\n <\/p>\n Whether you want to increase impressions or make more sales, you can figure out exactly how much to budget so your next ad campaign is a success.<\/p>\n When determining your Facebook ads budget<\/a>, you need to make two choices:<\/p>\n Depending on the kind of ad campaign you\u2019re running, these budget choices can help you maximize your hard-earned advertising dollars.<\/p>\n Chances are you plan on having more than one ad set running on Facebook at a time. But how do you determine how much money is given to each ad set from your total Facebook ads budget? You\u2019re answering this question when you choose between a campaign budget or an ad set budget.<\/p>\n How a campaign budget works on Facebook<\/em><\/p><\/div>\n With a campaign budget<\/a>, you set one overarching budget for all of your ad sets and let a Facebook algorithm called campaign budget optimization<\/a> (CBO) decide how to best spend it. Instead of each ad set getting equal amounts of money, Facebook will determine which ad sets will net you the most return for each dollar spent.<\/p>\n Campaign budgets are best for people who:<\/p>\n However, campaign budgets do have some drawbacks. The algorithm may not understand that one of your ad sets is valuable beyond just surface-level metrics. For example, if one of your ads is narrowly targeted at a small but important new market you want to break into, the CBO could take ad dollars away from it as it may not see the future value that these ads can bring.<\/p>\n An ad set budget<\/a> gives marketers the ability to control how much money goes to each ad set.<\/p>\n How an ad set budget works on Facebook<\/em><\/p><\/div>\n This level of control makes it ideal for people who:<\/p>\n Overall the most significant upside to ad set budgets is that they give you control. The downside is that you have to be the one monitoring and optimizing your bid strategies. When you have only a couple of ad sets, this can be fine, but mistakes can happen when the campaign grows.<\/p>\n Now that you know how you\u2019ll split your money between ad sets, you need to decide how each ad set will use its budget over a period of time. Facebook refers to this as budget duration<\/a>.<\/p>\n Lifetime budgets spend your money as effectively as possible over a set period of time.<\/em><\/p><\/div>\n Lifetime budgets<\/a> are perfect for pre-defined campaigns. You start by putting in an end date and a total spend amount. After that, you let Facebook pick and choose the best times to show your ads.<\/p>\n Facebook\u2019s algorithm will show ads based on when it believes you\u2019ll get the best returns for your ad dollars. With this budget duration type, there will sometimes be a big difference in the amount of money spent day-to-day.<\/p>\n A lifetime budget is best for people who:<\/p>\n Depending on your situation, a lifetime budget can be the best way to put your ads out there, especially if daily consistency isn\u2019t your main concern.<\/p>\n Daily budgets try to stick to an average spending amount over the course of a week.<\/em><\/p><\/div>\n In contrast, a daily budget<\/a> has you set an average dollar amount per day, and Facebook will do its best to hit that target over the course of a week. Each day, Facebook is free to deviate from your average by as much as 25%<\/a> if they feel they can get more value for you by shifting the numbers around a little.<\/p>\n A daily budget is for people who:<\/p>\n Each of these budget types has its upsides and downsides, and the best one for you is going to come down to what you want to accomplish.<\/p>\n Now that you know about the different budget types, you can start looking at how to determine your campaign\u2019s ideal budget.<\/p>\n The perfect Facebook ads budget achieves your marketing goals without overspending to get there.<\/p>\n To help you find your best Facebook ad budget, we\u2019ve built a calculator that crunches your numbers and spits out the amount you need to spend to reach your Facebook marketing goals. But it needs some raw data to work. The following steps will help you get those numbers so you can use the calculator to grow your business on Facebook.<\/p>\n If you\u2019re already running your ads on Facebook and just need the calculator to refine your budget, click here to download<\/a> our Facebook Ad Budget Calculator right away.<\/p>\n Start your budgeting by determining what concrete goal you want to achieve through your Facebook marketing efforts. Once you\u2019ve settled on a goal, you can begin to figure out what you need to spend to get there.<\/p>\n Campaign goals<\/a> are often split into three broad categories:<\/p>\n Within each of these broad campaign goal categories, there are more specific marketing objectives for your ads<\/a>. When you set up your ad campaign, you\u2019ll choose one of these objectives so that Facebook can optimize<\/a> your ads with this goal in mind.<\/p>\n The eleven different objectives you can choose from on Facebook ads.<\/em><\/p><\/div>\n For example, if you want to focus on lead generation, Facebook will help you create a lead ad<\/a> where you can collect information on potential clients, which you can follow up on later.<\/p>\n In total, there are 11 different marketing objectives that you can optimize for. To find out more about these goals, check out our in-depth guide on marketing objectives<\/a>.<\/p>\n Each kind of campaign goal can have different costs associated with it. Luckily, we have the hard data<\/a> to help you understand how much you may need to spend to achieve your objectives before you start testing out your new ads.<\/p>\n But first, some background information for beginners.<\/p>\n Facebook ads work on an auction system<\/a>. Every time there\u2019s a chance to display an ad to a Facebook user, Facebook will hold an auction among the most relevant ads and then show the ad with the highest \u201cvalue<\/a>\u201d (a combination of the bid amount, estimated action rates, and ad quality). Depending on several factors (including your goal, the target market, the time of day, etc.), Facebook ad costs can change.<\/p>\n This is all fascinating, you say, but how much is it going to cost me? Well, let\u2019s look at the stats.<\/p>\n In 2020, AdEspresso did a study of advertising costs on Facebook<\/a>. We found that:<\/p>\n When we accounted for campaign objectives, we found that the prices varied by a lot.<\/p>\n Different campaign objectives can have very different CPC averages.<\/em><\/p><\/div>\n[Image Source<\/a>]\n As you can see, some objectives are far pricier than others. If you want to create an ad set designed to increase impressions, it\u2019s going to cost you more than just link clicks.<\/p>\n This means you need to be confident that you\u2019re going after the best campaign objective for you. Choosing the wrong objective won\u2019t just waste your time but also potentially a fair amount of money. Start to get a picture of what your budget may need to be for your goal.<\/p>\n You won\u2019t know what works in the wilds of Facebook until you test it. Testing allows you to see which ads are the horses to back and which ones need to be put out to pasture.<\/p>\n Generally, you should start with small ad spends across 3\u20135 days (even $2\u2013$5<\/a> per variation will do) to see how well different ad sets perform.<\/p>\n The longer you run the ad, the more data you\u2019ll have on it, and the better Facebook will be at showing it<\/a>. By leaving the ad up for about five days, you should have enough performance data to evaluate the campaign. You don\u2019t want a good ad thrown out over one bad day.<\/p>\n Here are some key metrics<\/a> you\u2019ll want to keep an eye on when evaluating your ad\u2019s performance:<\/p>\n After you\u2019ve collected your data, you\u2019ll begin to see which ads are working best, and you can start rolling out your ad campaign.<\/p>\n However, you should never forget to continue to refine your ads as your campaign continues. Get a full rundown on how to do A\/B testing like a pro by checking our Beginner\u2019s Guide to A\/B Testing Facebook Ads<\/a>.<\/p>\n After five days or so, you should begin to see what is (and isn\u2019t) working in your ad strategy. It\u2019s time to spend your budget and achieve your goals.<\/p>\n You can change your ad budget on Facebook<\/a> by accessing the Facebook ad manager. Once there, you\u2019ll want to:<\/p>\n Monitor and optimize your campaign based on how well the ad is performing. You can learn more about how to tell if your campaign performance is crushing it or not by reading about Facebook optimization<\/a> strategies.<\/p>\n Wait, wait, wait. Did we miss a step? How do you know how much to spend on Facebook ads to accomplish your marketing goals? Trial and error? Tarot card reading?<\/p>\n You could try those things, but it would probably be much easier to just use our Facebook budget calculator.<\/p>\n If you\u2019re working with fewer ad dollars, you can still market yourself on Facebook. To see how, check out our guide on how to succeed with Facebook marketing on a small budget<\/a>.<\/p>\n Our Facebook Ads Budget Calculator will help you determine the amount of ad spend you need to meet your ad campaign\u2019s marketing goals.<\/p>\n All we need you to do is input your data in the left column, and you\u2019ll get your results in the right column.<\/p>\nThe Facebook Ads Budget Calculator – <\/em><\/strong>Click and get your copy now<\/strong>! It\u2019s 100% Free!<\/strong><\/span><\/a><\/div>\nTypes of Facebook Ads Budgets<\/b><\/h2>\n
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Campaign Budget vs. Ad Set Budget<\/h3>\n
![\"Campaign](\"https:\/\/adespresso.com\/wp-content\/uploads\/2021\/02\/1-1024x512.png\")
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![\"Ad](\"https:\/\/adespresso.com\/wp-content\/uploads\/2021\/02\/2-1024x512.png\")
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Lifetime Budget vs. Daily Budget<\/b><\/h3>\n
![\"Lifetime](\"https:\/\/adespresso.com\/wp-content\/uploads\/2021\/02\/3-1024x512.png\")
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![\"Daily](\"https:\/\/adespresso.com\/wp-content\/uploads\/2021\/02\/4-1024x512.png\")
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How to Find Your Perfect Facebook Ads Budget<\/b><\/h2>\n
Step 1. Consider Your Goals<\/h3>\n
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![\"Campaign](\"https:\/\/adespresso.com\/wp-content\/uploads\/2021\/02\/campaigntypes-1024x476.png\")
Step 2. Understand How Much It Might Cost<\/h3>\n
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![\"CPC](\"https:\/\/adespresso.com\/wp-content\/uploads\/2021\/02\/screenshot-adespresso.com-2021.02.03-15_52_09-1024x878.png\")
Step 3. Start Small and Track Your Metrics<\/h3>\n
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Step 4. Ramp Up Ad Spending<\/h3>\n
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How Much to Spend on Facebook Ads: Our Ads Budget Calculator<\/b><\/h2>\n
![\"our](\"https:\/\/adespresso.com\/wp-content\/uploads\/2021\/02\/screenshot-adespresso.com-2021.02.03-17_36_16-1024x641.png\")