If you’re here, we’re guessing that you’re considering investing in Facebook ads, but you’re not sure how much should you spend or what our overall advertising budget should be?

Let’s be honest. There’s no right or wrong answer here.

There is no magic bullet, or magic budget in this case.

Whilst there isn’t a magic budget, let us explain the type of expenses and ways to determine your budget you should consider.

Each of Facebook’s objectives will come with its own costs and results which will be your indication of spend after testing some ads. (Which is what we do all the time!)

For example if the objective is to drive traffic to a blog post the ad that we’d be setting up is traffic, or ‘link clicks’ ad.

Ads that drive traffic are measured in CPM. Cost per thousand (CPM) is a marketing term used for the price of 1,000 advertisement impressions on one webpage.

We often see a CPM anywhere between $1 and $4 to non-fans with ads, providing it’s a very targeted group with specific interests. Your CPM here is going to depend on the size of your audience and our results are no guarantee for yours but generally the goal is to keep Cost Per Link Click under $0.20.

To find out what this number would be for you, we suggest testing a few ads to see what your benchmark would be.

Here at Ostara Marketing we’re big fans of using Facebook ads to build email lists and utilise it to launch our clients online courses and membership sites.

This requires a different approach to setting your budget and the only way to find out what the budget should be is by testing a number of ads to grow your list. For some of my clients we get leads for $0.40 but for others it can be $14. The number doesn’t necessarily matter as long as the leads are highly targeted and convert to sales.

When working with clients we want to know as much as possible about a clients’ funnel, in particular the conversion numbers as we use this to predict the ad spend and return on ad spend. The aim of advertising is to make more than you spend. If the cost per lead is $14 but your conversion rate is 40% to a $1,997 1:1 program then you’re likely to get a healthy return on investment.

We recommend working backwards by asking how many people you want to add to your list and then running some test ads to see what it costs to add a new subscriber to your list. For example, if the aim is to gain 5000 new subscribers and on average it costs $1.90 to add a new subscriber, this means that to add 5000 subscribers you’ll need a budget of at least $9,500.

There is no magic Facebook advertising budget. To find out what the benchmark is for your business you’ll need to run some tests and then work backwards to determine your budget.


If you’re unsure how to do this or prefer to hand it over, get in touch with our team. We love doing this!