How To Determine Your Meta Ads Budget
Budgets are always a HOT topic when people come to me thinking about investing in ads to grow their business.
More specifically, they want to know what the minimum budget is required to run ads and get results.
While I wish I could wave a magic wand and tell you an exact number, like everything else when it comes to my industry, there is not a one size fits all answer that I can give you.
It all comes down to your goals and what you’re going to be promoting with your ads.
However, I do want to give you some insight on how to approach this from both a business standpoint and in terms of what Meta is looking for when it comes to their learning algorithm.
These are two different approaches that can help you get a better idea of what to spend, rather than throwing a random number out there and crossing your fingers that you see results.
Approach #1 - Reverse Engineer From Your Goals
The first way is to determine what goal you’re going to focus on achieving with your ads.
Even though we all want more sales at the end of the day, the goal of your ad may be to generate leads or grow an email list. (This is where 90% of my clients start)
Once you know your goal, you can start to reverse engineer your numbers and project an estimated budget of how much you’ll need to spend to hit it.
For example, if your goal is to make 10 sales and you need to generate 1,000 leads to do so, you can multiply your estimated cost per lead by 1,000 in order to figure out your estimated budget.
One easy way to do this is to use my budget calculator and ROI tool.
This tool quickly helps you determine your budget and ROI depending on the type of ad you’ll be running and provides you with average lead costs depending on your funnel and conversion rates to make the process easier and much faster.
Approach #2 - The 50 Per Week Rule
The second approach I recommend you take when it comes to determining your minimal ad budget is to consider the 50 Results Per Week Rule.
Meta suggests aiming for about 50 results per week, per ad set, to allow their algorithm to optimize your ads most effectively.
So once you’ve started running ads and you know what your average cost per result is, simply multiply this figure by 50 to find your ideal weekly budget.
For example, if your cost per lead is $5 on average, then your ideal weekly budget for ads would be $250.
This is considered the optimal minimum to maintain consistency in your ad performance and manage costs efficiently.
While it's more of a recommendation and it’s definitely possible to spend less, understand that lowering your budget may lead to variable outcomes and potentially higher costs over time.
This is why it’s often more effective to focus on one ad set with a substantial budget rather than spreading your resources too thin across multiple different ad sets.
Concentrating your efforts can lead to more significant and more consistent results, which helps when it comes to scaling.
So, as you can see, deciding on the right budget can be as much an art as it is a science, but with these two strategies, you should have a better idea of what’s required in order to get started off on the right foot.
P.S.: The best way to get a quick answer is to use my budget calculator tool. This a great tool that you can come back to time and time again in order plan your budget, determine your KPI’s, and ensure that you stay profitable when it comes to your ad campaigns.
WANT MORE SUPPORT? WHEN YOU’RE READY, HERE ARE THE WAYS THAT I CAN HELP YOU GROW YOUR BUSINESS:
1. Ready to create your own high-converting ads? Grab the High-Performing Ad Toolkit that’s helped thousands of business owners create click-worthy ads while saving time and the guesswork.
2. Want help creating your strategy or getting your most pressing marketing questions answered? Book a 1:1 consulting session with me.
3. Looking for Done-For-You support and help getting your ads up and running without paying monthly management fees? Apply to work with me through my VIP Ads In A Day experience.