Facebook Ad Budget Allocation: How Much Should You Spend for Optimal Results?

Many brands and businesses seeking to manage their budgets effectively wonder which social media platform is the best option for advertising. Here are some on-target solutions for growth marketing.

Why is Facebook Advertising Still the Most Popular?

Have you ever wondered why Facebook advertising is still the most popular option out there?

Well, it's becoming cliché to say this, but we're in an age where achieving success without the power of social media is exceedingly difficult. While conventional advertising still holds sway, digital marketing is expanding its boundaries every day. Furthermore, a new player joins the scene each day.

When Facebook was first established in 2004, it aimed to help Harvard University students find and communicate with each other through a social network. Fast forward to today, it has grown into a platform where businesses and brands have a digital presence. This has essentially changed the landscape of advertising and customer acquisition.

Despite many competitors entering the market over time, when it comes to businesses' advertising preferences, Facebook still leads the pack. Taking a look at the current data, we encounter the following scenario:

Let's take a look at the most recent Facebook data for 2024. According to Statista, as of January 2024, Facebook is the most preferred social media platform, with approximately three billion monthly active users worldwide. This also means that Facebook is like a gem for advertisers on their journey to reach more people.

A survey was conducted in 2023 among B2B and B2C marketers worldwide. According to the study, %29 of the respondents considered Facebook the social media platform that provided the highest return on investment (ROI) that year. The same percentage of respondents also indicated that Instagram was the platform with the highest ROI. YouTube was ranked third, with 26 percent of the respondents, followed by TikTok with 24 percent.


According to data showing social media platforms with the highest ROI worldwide, we can sort the best platforms for marketing as:

• Facebook
• Instagram
• Youtube
• Tiktok
• Twitter
• Snapchat
• Linkedin
• Pinterest

How to Manage Your Facebook Ads Campaign

If you need a Facebook ad budget strategy, first and foremost, you need to adopt a comprehensive perspective. Because allocating the Facebook ad budget for optimal results depends on various factors. Some of these are your campaign objectives, target audience, industry, and the level of competition. Generally, in budget optimization for Facebook ads, you can follow these steps:

• Define Your Objectives: First, you must clearly outline specific goals such as increasing awareness, driving traffic, generating leads, or boosting sales.
• Identify Your Target Audience: Before asking how to reach my target audience, you need to know who they are. So, know your target audience's demographic, interests, and behavioral characteristics.
• Choose Ad Formats: Select the ad formats that align best with your goals, such as image ads, video ads, or dynamic ads.
• Monitor Your Budget: Establish your budget and monitor ad performance to optimize Facebook ad spending.
• Monitor Competition: Stay up-to-date on market trends by monitoring competitors' ad strategies and adjusting your budget accordingly.
• Measure Conversions and ROI: Track return on investment (ROI) and conversion rates to evaluate the effectiveness of your advertising budget.

When budgeting Facebook ads for optimal results, focusing on your objectives, target audience, and campaign performance is essential.

How Does Advertising on Facebook Work?

The logic of Facebook advertising involves the following steps:

1. Advertisers target their ads based on specific;
Demographic Characteristics
• Age
• Gender
• Location
Interests
• Hobbies
• Interests
• Profession
Behaviors
• Purchase Habits
• Internet Usage
• Even wake-up times!
This way, the ad reaches only a specific audience. A good start!
2. Advertisers create their ads using various ad formats that appeal to their target audiences. Text, image, video or carousel? Choose your fighter!
3. Advertisers set a budget for their ads based on different payment models such as impressions, CPC, or CPM. The budget determines how long and how often the ads will be shown.
4. Advertisers use performance metrics to optimize Facebook ads. Advertisers monitor ad performance and evaluate metrics such as interactions, clicks, and conversions.
5. Advertisers analyze ad performance data to optimize campaigns, tailor strategies for maximum impact, and use Facebook's ad platform to reach audiences and manage budgets.

Facebook Ad Budget Management With Numbers

How much does it cost to advertise on Facebook, and what steps can be taken to optimize expenditures in the year 2024?

While math calculations can provide reliable data, budgeting for Facebook Ads is a complex process requiring a comprehensive strategy beyond crunching numbers. That being said, calculations still play an essential role in the process. To guide us at this stage, let's take a closer look at the available information on average spending.

The average CPC for Facebook ads is around max $1 as of March 2024. The average Facebook CPM is around $14. Facebook's average cost per lead (CPL) is between $5 - $7

For best results, the recommended daily Facebook ad spending, according to Enhencer data, is approximately $10.

What Does an Unsuccessful Facebook Campaign Look Like?

• A disappointing Facebook ad campaign obviously means low engagement rates relative to ad spending.
• That means you need to change your strategy to reach the target audience.
• Adjust the target audience or ad settings for Facebook's algorithm to fix negative ad spend.

Indicators of Negative Ad Spend and How to Solve It?

Low ROAS: ROAS (Return on Advertising Spend) is a metric that measures the revenue earned for every dollar spent on a campaign. It indicates the profit achieved for each advertising expense. ROAS helps determine the success or failure of a particular advertising campaign. ROAS can be calculated with a simple formula:

ROAS = (total campaign revenue / cost of ads) x 100
Solution: Change your target audience and use a different creative.

High CPR:CPR (Cost Per Result) is calculated as the amount spent divided by results. It is a measure of how efficiently your ad campaign achieved its objectives. Solution: Change your target audience and use a different creative.

Low CTR:CTR is a significant measure in digital marketing, as it shows how much an ad can engage with its audience. A low CTR could imply that the ad is not effectively reaching its intended audience or needs optimization.
CTR = Number of Clicks / Number of Impressions x 100

High CPC:Cost per click (CPC) is used to measure the amount of money advertisers pay for each click on their ad. It's the result of low CTR.

In the case of high CPC, it's enough to only change your creative.

Final Words

Due to Facebook's enduring popularity over the years, it continues to be the most preferred social media platform for advertisers. As a result, there is increasing competition among brands striving to get featured on Facebook Ads. You are very close to winning this race. If you want to take your brand to the next level and boost your sales, the key is to use the right creatives and tools.

Boost your ad revenue from day one with AI Ads. Get your Google Ads campaigns up and running with just a few clicks with Enhencer, which is perfect for e-commerce businesses of any size.