Setting Your Facebook Ads Budget
The right budget depends on your goals, industry, and stage of business. Here's a practical framework.
Testing Phase: $500-1,500/month
When starting out, you need data before you can optimize. Budget $20-50/day across 2-3 campaigns. Test different audiences, creatives, and offers. The goal isn't profit — it's learning what works.
Scaling Phase: $1,500-5,000/month
Once you know what converts, increase budget on winning campaigns by 20% every 3-5 days. Add new creative variations regularly. Expand to new audiences.
Growth Phase: $5,000+/month
At this level, diversify across campaign types (prospecting, retargeting, lookalikes). Test new ad formats. Consider hiring a specialist or agency to manage at this scale.
How to Calculate Your Budget
Work backwards from your revenue goal. If you need 50 customers/month, your average order value is $100, and your conversion rate is 2%, you need 2,500 website visitors. At $1 CPC, that's $2,500/month in ad spend.
When to Increase Budget
Increase when: ROAS is consistently above your target, you have creative that performs well, and you're not seeing ad fatigue. Don't increase budget and change creative simultaneously — you won't know what caused the change.