How do I Set my Budget for Facebook or Google Ads?

Dec 30

If you’ve ever struggled to figure out how much to spend on Facebook or Google Ads, you’re not alone. It’s a tough balance—spending too little might not get you results, but no one wants to blow their budget either!

The truth is, advertising on these platforms isn’t as simple as putting money in and getting sales out. To make it work, you need a solid strategy, great creatives, and a realistic approach to your budget.

Here’s how to find your sweet spot.

1. Work Backwards from Your Sales Goals

Think about how much traffic you need to hit your sales targets. For example, if your website’s conversion rate is 1%, you’ll need 100 quality visits to make one sale. So, if your goal is two sales a day, you’ll need to bring in 200 visits daily.

2. Use Google’s Keyword Planner for Estimates

Google Ads’ Keyword Planner is a great tool for figuring out costs, this will tell you an estimated average cost per click. Ideally your budget should cover enough to get 10 clicks per day at a minimum to get meaningful results.

3. Be Realistic About Conversion Costs for Your Industry

The cost of getting a sale (or lead) can vary depending on your industry and product.

High-ticket items (like a $10,000 website build) might cost a few hundred dollars per lead.
Retail or fashion products might see cost per conversion of $10+ on Facebook or Google.

Knowing what’s typical for your industry helps you set realistic expectations for your ad spend. Initially you should spend 2-3 times the average cost per conversion before turning off an ad or editing it.

Across Meta & Google the algorithms learn over time and get better the more data and conversions they have to work from.

4. Start Small and Adjust as You Go

Don’t stress about finding the “perfect” budget right away. Start with a number you’re comfortable with, monitor how your ads perform, and scale up or down as needed.

At $30/day, your cost per conversion might be $10, leading to 3 sales. During peak sales periods like Black Friday or your peak season you can be more confident to raise that spend to $100-$200 per day.

Just remember when using a small daily budget to consolidate and simplify campaigns.

5. Get Creative with a Small Budget

If your budget is tight, focus on a smaller geographic area or a niche audience. Targeting fewer people means you can stretch your dollars further while still reaching the right ones.

Please don’t try and target Australia with $10 per day. However targeting Nelson with $10 per day on Meta (sometimes Google) to start out will still give you meaningful results.

6. Boost Spending During Peak Times

If you’re in e-commerce, don’t keep the same ad budget all year round. Ramp it up during busy times like holidays or sale seasons to maximise your revenue when demand is highest. Also don’t be afraid to turn ads off during slower times if you have a natural drop over Winter for example.

7. Use Tracking Tools to Stay on Top of Results

Tools like Google Analytics 4 (GA-4), Google Ads, and Meta’s ad pixels can help you track how your ads are performing. The better your tracking, the better decisions you can make about where to spend your budget.

Keep It Simple

Budgeting for ads might seem overwhelming, but it doesn’t have to be! Start with your goals, test what works, and tweak along the way. With a little time and practice, you’ll find the budget that’s just right for your business.

If you would like any assistance with or have any questions about Facebook or Google Ads please reach out, I’d love to hear from you.