Running Facebook and Instagram ads without a clear budget is like shopping with a blindfold on. Whether you’re just starting or scaling up, your success depends on smart budgeting.
So, how much should you actually spend on Meta Ads? Let’s break it down step-by-step so you can plan like a pro.
Start With Your Marketing Goals
Ask yourself:
- Do you want brand awareness?
- Are you aiming for website traffic?
- Is your goal to generate leads or sales?
Your goal determines your spend. Lead gen or sales usually require more budget than brand awareness.
Understand the Cost Benchmarks
Here are average costs you can expect:
- Cost per Click (CPC): $0.50–$2.00 (varies by niche)
- Cost per 1,000 Impressions (CPM): $5–$15
- Cost per Lead (CPL): $5–$30 depending on industry
Always monitor performance to adjust and optimize.
Choose a Monthly Budget You Can Afford
If you’re just starting out:
- Start with $150–$300/month
- This gives enough data to learn and optimize
For growing businesses:
- Spend 10–15% of monthly revenue on ads
- Example: $5,000 revenue = $500–$750 ad budget
Budget by Funnel Stage
Split your budget across funnel stages:
- Top of Funnel (TOFU) – 60% for awareness and cold traffic
- Middle of Funnel (MOFU) – 25% for engagement/retargeting
- Bottom of Funnel (BOFU) – 15% for high-converting actions
Don’t Forget Testing Budget
Reserve at least 10–20% of your budget for A/B testing:
- Test creatives, audience, and copy
- Scale what performs best
Daily Budget Example
Here’s a beginner-friendly breakdown:
- $5–$10/day for brand awareness
- $10–$15/day for lead generation
- $15–$25/day for conversions/eCommerce
Stick to one campaign goal at a time when budgets are tight.
Mistakes to Avoid
- Setting a large budget without strategy
- Running ads without Pixel or conversions tracking
- Expecting overnight results
- Ignoring the learning phase
How to Scale Smartly
Once your ads are profitable:
- Increase budget by 20–30% every 5–7 days
- Don’t double your spend overnight—this resets performance
- Use Campaign Budget Optimization (CBO) to manage spend efficiently
Want a Custom Budget Plan?
At Targeted Audience Solutions, we help businesses build ad plans that match their goals, size, and market. We can create a strategy that grows as your results grow.
Check out our plans or request a custom quote today.
Final Thoughts
There’s no magic number for ad spend. But there is a smart way to budget:
- Align with goals
- Start small
- Track results
- Scale what works
A well-planned budget turns Meta Ads from an expense into an investment.
