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Min. Budget for FB Ads: Tips to Stay Cost-Efficient

Published on: June 5 2023 by pipiads

- In this video, we will discuss the minimum budget for Facebook ads in 2022.

- The answer to this question depends on various factors such as your marketing budget, product, and website.

Factors to consider:

- Your marketing budget

- Whether you have a proven product or not

- If you have an established brand

- If your website is optimized for conversions


- For a brand new account, start by testing different angles with your copy and creative, along with audiences.

- For an established brand with traffic, start with retargeting campaigns and go for the lowest hanging fruit.

- Set your budget based on your goals and metrics.

Budget breakdown:

- For a brand new store, start with a budget of at least $3,700 for the first month.

- For an established brand, a budget of $10,000 is recommended for retargeting campaigns.

- Consider the lifetime value of your clients when setting your budget.

- Facebook ads require a strategic approach and a budget that aligns with your goals and metrics.

- It's important to gather data and adjust your approach accordingly.

- Remember to calculate the lifetime value of your clients when setting your budget.

How Much Should You Spend on Facebook Ads Budgeting Steps

In this article, we will be discussing budgeting for online advertising. We will go over different strategies and methods for budgeting and how to determine the best budget for your business.

Strategies for Budgeting:

- Divide profit by 3-5 days to determine daily budget

- Shorter time frame = bigger budget, longer time frame = lower budget

- Consider the product being sold and adjust budget accordingly

- Test different budgets and analyze results to determine the best strategy

Step-by-Step Budgeting:

1. Determine retail price and cost of goods sold

2. Calculate profit

3. Divide profit by 3-5 days to determine daily budget

4. Adjust budget based on desired time frame and product being sold

5. Test different budgets and analyze results to determine the best strategy

Budgeting for online advertising can be a daunting task, but with the right strategies and methods, it can be done effectively. By testing different budgets and analyzing results, businesses can determine the best strategy for their specific product and desired time frame. Remember to adjust budgets accordingly and always be willing to test new methods.

Minimum Facebook Ad Budget? Here's What I Think...

In this video, Ben Heath from Lead Guru talks about the minimum Facebook ad budget that is acceptable and appropriate. He covers recommendations for starting with a small budget, the starting Facebook average, and how it should change over time.

Can You Start with a Small Budget?

- Yes, you can start with a small budget such as five pounds or five dollars a day.

- However, this budget is for testing and experimentation, not for generating significant revenue for your business.

What Should Your Starting Budget Be?

- Your starting budget should depend on your circumstances and be something you can afford to lose.

- It should also be a budget that actually means something and that you care about.

- For a small business, 300 a month may be an appropriate starting budget.

- For larger businesses, a minimum budget that means something could be as high as a thousand dollars a day.


- Starting with a small budget is okay for testing, but it won't generate significant revenue for your business.

- Find a minimum budget that is appropriate for your circumstances and that you care about.

- Risk versus reward should be considered when deciding on a budget.

Additional Resources:

- Free webinar on three killer Facebook advertising strategies

- Facebook Ads Mastermind Group with over 60,000 members.

What's the minimum budget for Facebook advertising? (Facebook Ads Tutorial)

In today's live session, we will be discussing a frequently asked question regarding Facebook advertising - what is the minimum amount of budget that should be allocated for Facebook advertising to yield a positive ROI?

Factors to consider:

1. Funnel - how many people do you need to reach to get one lead, and how many leads do you need to get one customer? Understanding your business's funnel is crucial in measuring the effectiveness of your Facebook advertising.

2. Cost per customer - how much are you willing to pay to acquire a new customer? This number can be obtained by looking at your other advertising or marketing channels.

3. Margin - how much profit are you making per sale? This will help you determine how much you are willing to spend on advertising to acquire a new customer.

Other considerations:

1. Every business is different, and there is no one-size-fits-all answer to how much budget to allocate for Facebook advertising.

2. It is a probability game - not everyone who sees your advertisement will take action, but reaching more people increases your chances of acquiring more customers.

3. Starting with a low budget is fine, as long as you have a foundation to keep improving your funnel and making it more efficient.

Understanding your business's funnel, cost per customer, and margin are crucial in determining how much budget to allocate for Facebook advertising. It is a probability game, and starting with a low budget is fine as long as you have a foundation to keep improving. Join our online class to learn more about Facebook advertising fundamentals.

Making $1,263 A Day - LOW BUDGET Facebook Ads Strategy (Shopify Dropshipping)

Yo, what's up guys? It's your boy Brett, also known as Lordy, back at you with another video. In this one, I'm gonna show you the best low cost Facebook ad strategy that I use to make over a thousand dollars a day with Facebook ads. Let's go!

Are you looking for a low cost Facebook ad strategy to test new products and validate new audiences, creatives, and copy? Look no further! In this article, I'll show you a simple yet highly effective strategy that has worked for me and can work for you too.


1. Campaign Setup:

- Make your campaign mean ad set budget optimization

- Select conversions as your campaign objective

- Make 10 ad sets at three dollars a day

- Target e-packet countries or the US

- Select English only

- Give each ad set its own interest

- Exclude view content for the past 10 days

2. Ad Set Setup:

- Target a product that costs under thirty dollars

- Target interests related to your product

- Look for interests with at least five million people for cold audiences

- Look for smaller interests for warm audiences such as LLAs and retargeting custom audiences

How Much Should You Spend on Facebook Ads? Budgeting Steps

Determining the right advertising budget for your business is crucial to success. In this article, we will go through a series of steps to help you effectively determine your budget and avoid common mistakes.

Step One: Understanding Your Numbers and Goals

- Understand the numbers related to marketing and sales in your business.

- Typically, a marketing budget could be anywhere between 5-12% of revenue.

- Seek out industry research to find appropriate cost per lead and cost per core event for your business.

- Look at conversion rates to determine cost per customer acquisition.

Step Two: Understanding Industry Data and Business Conversion Data

- Use industry data to help determine your budget.

- Look at your own business conversion data to determine what is a profitable spend.

- Find the maximum number you can spend to remain profitable.

Step Three: Distributing Your Budget

- Dedicate about 20% to education, engagement, and audience building ads.

- Dedicate about 60% to promoting your offer and generating conversions.

- Dedicate about 20% to retargeting efforts.

Common Mistakes to Avoid:

- Not giving Facebook ads enough time.

- Not spending enough money.

- Choosing the wrong types of campaigns and objectives.

- Not understanding how to read the data in ads manager.

Determining the right advertising budget for your business takes time and research. Understanding your numbers and goals, industry data, and business conversion data is crucial. Properly distributing your budget and avoiding common mistakes will help you succeed in your Facebook advertising campaigns.

Working Out The PERFECT Facebook Ad Budget

The most common question asked regarding Facebook ads is about the budget. However, it is difficult to provide an answer without understanding the specific circumstances of the business. This article will explain how to determine the budget that suits your needs.

Traditional Way of Determining Budget:

Assuming an e-commerce business with an average order value of $80 and a 2X row as the breakeven point, we need to generate 50 conversions per week at $40 per conversion. This translates to a weekly Facebook ad budget of $2,000, which amounts to $8,500 per month.

The Flaws of Traditional Budgeting:

While this is a traditional method, it is not applicable to every business as it may not suit their specific circumstances. Spending $8,500 per month is not necessary, especially for small businesses. The beginning stages of a Facebook ad campaign require testing, optimization, and figuring out the ad creative, ad copy, and offer that work best. It is important to prove that campaigns can perform well with lower budgets before scaling up.

Determining the Starting Budget:

The minimum budget should be an amount that would not cripple the business if it were lost without generating any leads or sales. It should also be an amount that emotionally stings a bit to lose. For example, a seven-figure business turning over $1 million a year might not care about losing $300, but a smaller business might find it too much. It is crucial to find the sweet spot where the business can afford to lose the budget but still cares about it.

Scaling Up:

Once the offer, creative, etc. have been tested at the starting budget level and proven successful, scaling up can be done. However, it is important to do so gradually and only after knowing that the campaigns can deliver results.

Determining the budget for Facebook ads is not a one-size-fits-all approach. It requires an understanding of the specific circumstances of the business. Start with a budget that emotionally stings a bit to lose but does not cripple the business, and gradually scale up after proving the campaigns' success.

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