How Much Should Your Facebook Ads Budget Be?

As a freelance Facebook Ads specialist, I often get asked, "How much should I spend on ads?" The answer depends on your revenue goals and past performance data. Here’s my tried-and-tested method for setting a realistic budget.

Start with Your Revenue Goal

First, decide how much revenue you want from your Facebook Ads campaign. Let’s say your target is £50,000 over three months.

Determine Facebook’s Contribution

Look at where your current sales come from. If email generates 30% of sales and Google Ads 50%, then Facebook contributes 20%. That means you’ll need £10,000 in revenue from Facebook Ads.

Calculate Required Sales

Using your average order value (AOV) from the past three months, if your AOV is £100, you’ll need 100 sales to reach £10,000 in revenue.

Estimate Your Ad Spend

Your cost per acquisition (CPA) is key. If past data shows a CPA of £15, then for 100 sales, you’ll need a budget of £1,500 over three months.

Refining Your Budget

This is a starting point. You can lower CPA by improving targeting, ad creatives, and landing pages. If you don’t have past data, I recommend running a test campaign for a month to get a baseline before committing to a larger budget.

I’ll caveat that with saying your budget should be flexible—track performance, optimise for efficiency, and scale when you see results.

If you need expert help running and refining your Facebook Ads? Let’s chat and build a strategy that works for you.