You come to me and say, “Jakob, my ads just don’t work, how much should I waste on Facebook Ads before I throw in the towel and stop giving my money to Zuckerberg?”
Are Facebook Ads a waste of money?
How much does it cost to run Facebook Ads?
The question of how much to spend on Facebook ads is a problem that I see many businesses face. Last year I helped my clients get over 20,000 leads through Facebook ads and I’m going to tell you how much you should spend per day to get these kinds of results and the Facebook advertising cost in Australia. So, are Facebook ads a waste of money?
Often I hear of business owners who boosted a post, got a few likes or clicks but no sales, and then say, “It didn’t work for me”.
This guide is designed to shed light on establishing a budget that aligns with your business goals, ensuring your experience through Facebook advertising is both fruitful and efficient.
Facebook Advertising Cost Australia
Facebook advertising offers a flexible approach to budgeting, but without a clear strategy, it’s easy to feel lost at sea. A good budget for Facebook advertising is not one-size-fits-all; it varies significantly based on your campaign goals, target audience, industry, and the competitiveness of your market.
How much do we recommend based on our experience? Please note this is a generalisation and simply based on what we do with our clients:
- $50-$80 per day for lead generation.
- $100+ per day for E-commerce.
Is $100 Enough for Facebook Ads?
To address the elephant in the room: is $100 enough for Facebook ads? In short, it can be a good starting point for small businesses or those new to Facebook advertising. This budget allows you to test the waters, gather data on what works, and refine your approach. However, for more competitive industries or larger-scale campaigns aiming for substantial growth, this amount will only scratch the surface.
Trust me, I’ve been running ads for over 5 years now, and within our team, we have over 10 years of combined experience. Unfortunately, $100 is simply just not going to cut it for long-term growth.
Can you get some data with $100?
Yes!
But, if you want to scale and get some real results you should aim to have at least a $750 budget. This is $25 per day.
Why?
Honestly, this is what we spend when doing our link click testing for brand-new ad accounts to get data for the pixel without blowing out our client’s budgets.
As soon as we know what will work we rapidly scale the daily spend to $50-$80 per day and then $100+ per day.
The $5 a Day Strategy – Is this a waste of money?
So, is $5 a day enough for Facebook ads? This budget strategy is popular among beginners and those with limited funds, focusing on slow and steady audience building. While $5 a day won’t catapult you to instant viral success, it’s sufficient for learning about your audience and incrementally improving your campaigns. Over time, these insights can prove invaluable, allowing for more targeted and effective ad spending as your budget grows.
How I would personally tackle this low-budget ad spend is strictly through either a traffic or engagement campaign and I would test up to 3 different organic posts that I already have on my Instagram/Facebook account.
What I’d then do from here is see which post gets the most traffic or engagement and gradually increase my spending on that post to at least $25 per day to get some serious data and send traffic to a website or landing page.
How Much Should I Spend on Facebook Ads
Determining a good amount to pay for Facebook ads hinges on understanding your marketing objectives. Whether it’s increasing brand awareness, driving website traffic, or generating leads, your goals should guide your budgeting decisions.
A robust strategy involves setting clear KPIs, understanding your customer acquisition cost (CAC), and calculating the return on ad spend (ROAS) you aim to achieve.
Incorporating strategic insights from resources like how to insanely increase return on investment with Facebook Ads, leveraging 16 profitable lead generation strategies, and understanding the best beginner’s guide to advertising on social media can dramatically improve your advertising efficiency and outcomes.
Maximizing Your Facebook Ad Spend
To ensure your investment in Facebook ads is well-spent, consider the following tips to maximize your ad spend:
- Target Wisely: Use Facebook’s targeting features to reach your ideal audience. Narrowing down your audience can improve engagement and reduce costs.
- A/B Testing: Regularly test different elements of your ads, such as images, headlines, and call-to-actions, to see what resonates best with your audience.
You can even take it a step further and test different placements, for example, stories, reels, and marketplace.
- Optimize for Conversion: Focus on ads that convert viewers into customers, not just those that get clicks. Monitor your conversion rates closely and adjust your strategy accordingly.
- Use Analytics: Dive deep into Facebook Insights to understand how your ads perform. Look beyond surface-level metrics to analyze customer behavior and campaign effectiveness.
My favourite metric to track is the Click-Through-Rate (CTR).
- Scale Gradually: As you start seeing positive results, reinvest profits back into your ad campaigns. Increasing your budget gradually helps mitigate risk while exploring the potential of scaling your ads.
Facebook Ads Cost Per Lead
The key to determining how much to spend on Facebook ads lies in an understanding of your business goals, audience, and the competitive landscape. Starting small, using data-driven strategies, and continuously optimizing your campaigns can lead to significant improvements in your advertising ROI. For example, we aim to get between stay between a 4 to 1 and a 9 to 1 return on ad spend. So we gradually increase ad spend while keeping this ROI in mind.
So you know how much you should spend, now how much should you expect to pay per lead?
Well, it depends on how competitive your industry is, how powerful your offer is, and if anyone is actually even interested in what you’re selling.
Remember, the journey of Facebook advertising is a marathon, not a sprint. Patience, persistence, and a willingness to learn from your campaigns will guide you to the right budget that not only meets your business needs but also propels you towards your long-term growth objectives.We aim for our cost per lead to be under $50 across all industries. For certain clients, we aim around that $10/lead mark. But, honestly, if you’re selling a high-ticket service you’d probably be okay with spending even up to $100 per lead if you know your service is a few thousand dollars per month retainer. It’s all relative and entirely depends on your specific circumstances.
If you need expert help you can also have a chat with my team.
Explore comprehensive strategies and insights on leveraging Facebook ads to their fullest potential by engaging with valuable resources. By doing so, you equip yourself with the knowledge to make informed decisions, optimize ad spend, and achieve measurable success in your digital marketing endeavors.
Remember, Facebook advertising is always changing, and with the introduction of AI it’s becoming smarter and smarter. It is also becoming harder to target the right people with new privacy policies. So keeping this in mind staying informed, and maintaining a strategic in your approach will ensure that your investment in Facebook ads delivers the impactful results your business aspires to achieve.
By approaching Facebook advertising with a clear strategy, informed by insights and optimized through continuous learning, you can unlock the potential of your ad spend, driving meaningful engagement and sustainable growth for your business.
Whether you’re starting with a modest budget or ready to scale up your advertising efforts, the journey towards effective Facebook advertising is one of strategic investment, keen analytics, and relentless optimization. Embrace the journey, and let the seas of Facebook advertising lead you to the shores of business success.
