How Much Should I Spend On Social Media Ads?


One question our clients frequently ask is “how much should I spend on Facebook or Instagram ads?” More often than not they are met with the dreaded reply of “It depends.” It’s an answer they don’t like getting and one we don’t like giving. We don’t say that to dismiss our clients; we say that because ad spend really does depend on several different factors.

So we decided to take on the challenge of answering this seemingly unanswered question. Your company’s time and money matter, and that’s why we want to help. Here are some variables you should consider before asking the question “how much?”.

1. What’s your goal?

Setting objectives is the key to determining how much money to put into your ad budget. What’s your goal with this ad? What are you wanting to accomplish? Perhaps, you’re wanting to drive more people to your website or raise awareness about a new service you’re offering. Do you care more about getting “likes” on your page or sending people to your site? Maybe you want to show off a new video. Social media ads are great ways to communicate all of these messages to a specific audience.

Through Facebook Ads Manager, the possibilities are endless. Awareness, reach, traffic, engagement and conversions are all examples of objectives that you can choose through Ads Manager. So before you even worry about how much to spend, take some time and really think about what you want your ad to do for your business. 

2. Define your audience.

Next, you need to determine who you want your ad to reach. Facebook Ads Manager makes it simple to define your target audience. The application gives you options to define your general audience such as age, gender and location. Additionally, Ads Manager also lets you target audiences based on demographics, interests or behaviors. 

If you’re wanting to gain new clients, perhaps you’ll target people with an interest similar to your product. Let’s say you’re in the business of selling hand-poured candles. If you want to get new clients you may target people who are interested in handmade products or home decorating. Find out who you want to target and base your ad around interests or hobbies your ideal customer may have. It’s best to be as specific as you can when defining your audience. Essentially with social ads you’re paying for each person who views the ad, so by narrowing your audience, you’re making sure you get the attention of the right people. 

3. Get Creative.

Setting an ad budget is important, but what’s more important is creating an engaging ad. If you’ve got a subpar ad with a premium budget, chances are your ad may not do as well as you would like it to. However, if your copy is catchy and your ad creative is… well… creative, you’ll have a better chance of getting the most out of your money. So get to the drawing board!

4. Set your budget.

Finally! The moment you’ve all been waiting for. It’s time to set your social media ad budget. As you’ve probably guessed by now, the answer to the title of this blog isn’t as straightforward as we all would like it to be. In fact, the answer depends on a few, important variables. At this point, you may want to grab a piece of paper and a calculator because SPOILER ALERT: we’re about to do some math.

  • Monthly Ad Spend. What do you currently spend on social media ads each month? If you don’t have a social ad budget, write down what your ideal monthly budget it would be. (HINT: there’s no right answer to this.)

  • Cost Per Click. If you’re not familiar, cost per click (CPC) is the average cost for each link click on your ad. If you need more information about CPC, click here. What you really need to know is how much you expect to pay per click.

  • Opt-In Conversion Rate. An opt-in conversion rate is the number of people who took action on your website (i.e. bought your product, signed up for your email list, fill out a contact form, etc.) divided by the number of people who visited your page. Your company’s opt-in conversion rate can be found by analyzing your website metrics.

  • Lead to Customer Conversion Rate. This is similar to an opt-in conversion rate. You can find it by dividing the total number of new customers by the total number of leads and then multiplying by 100.

  • Average Sale Price. Average Sale Price (ASP) is the average price of a product across multiple distribution channels. You can find your company’s ASP by dividing net sales with the number of products sold.

Now that you have all of the above information, you can use it to calculate how much you can spend on the ad by inputting the data into a Facebook ad calculator like this one here.


So how much should you spend on your Facebook ad? The answer is everyone's least favorite reply, “It depends.” But now you know what it depends on. Based on the above variables, you’ll know how much to spend and more importantly, how much you can expect to gain from the ad.

We hope this blog has helped you cut through the confusion of the digital advertising world. If you’re still lost, we get it. Moore Media Group would love to come alongside you to create beautiful Facebook ads that get results. Contact us today!