Top 5 Mistakes When Setting a Daily Budget on Facebook Ads

Facebook advertising is a powerful tool to help businesses attract traffic, generate leads, and increase sales. However, many advertisers make serious mistakes. These mistakes not only render campaigns ineffective but also waste budgets, resulting in hundreds of client campaigns over the past few years failing to achieve the desired results. In this article, BHW will share practical experience and solutions to help you fix common mistakes when running Facebook ads.

As an official Facebook partner, BHW Agency has a diverse library of high-quality advertising accounts with various time zones, currencies, and countries. With a team of experienced advertising experts who have a deep understanding of Facebook’s algorithms and hands-on experience across multiple industries, we are confident in providing the most effective advertising solutions for businesses.

BHW Agency is the leading reputable and professional Facebook advertising account rental address on the market. By using our accounts, businesses are not only guaranteed to have smooth-running campaigns, optimized costs, and increased sales, but also receive many privileges from Meta: access to advanced features, preferential bidding prices, and the ability to bypass review barriers with a 100% campaign approval rate.

Top 5 Mistakes When Setting a Daily Budget on Facebook Ads

When running Facebook ads, many new advertisers often make mistakes when setting up their daily budget. These seemingly small errors can lead to us spending a lot of money with a return that is not what we expect. Below are 5 common mistakes that we often see.When running Facebook ads, many new advertisers often make mistakes when setting up their daily budget. These seemingly small errors can lead to us spending a lot of money with a return that is not what we expect. Below are 5 common mistakes that we often see.

The audience file is too small.

One of the common mistakes many advertisers make is choosing an audience file that is too small. “Small” here means under 1 million people.

For countries with low populations like Slovakia or Slovenia, this can be an exception. However, for example, if you run ads in the US, Australia, the UK, Canada, or all of Europe, the minimum number must be 1 million, and Facebook even recommends at least 2 million people.

Many of you often think: “Only about 10,000 people are genuinely interested in this product, so let’s use a small target to be safe.” But that is a mistake. Facebook needs a sufficiently large amount of data (data points) to optimize ads. If you target too narrowly, Facebook will not have enough data to find potential customers.

Overusing CBO (Campaign Budget Optimization)

At the campaign level, many people often enable Campaign Budget Optimization (CBO) from the start. This is not suitable if you are new to running ads or do not have much pixel or conversion API data.

For example: You have 5 ad sets and a $100/day budget. If you enable CBO, Facebook might allocate up to 80% of the budget to just one ad set, ignoring the other four. This way, you won’t be able to test which message, content, or target audience is most effective.

Let Facebook expand campaigns unintentionally

At the ad set level, two default settings cause many advertisers to lose control:

• Audience Expansion (Advantage Audience): Even if you have targeted very carefully (by age, gender, interests, behaviors…), Facebook can still automatically expand beyond your selected scope. This is especially dangerous when you run retargeting, as the budget can be wasted on irrelevant audiences.
• Placements: By default, Facebook enables Advantage+ Placements, meaning ads will appear everywhere: Marketplace, Audience Network, Messenger, games… Most of these bring low quality or are almost useless.
  

Letting Facebook automatically edit ads.

Many of you are surprised to learn that Facebook can automatically “optimize” our ads. They can insert music, add text, crop videos, change titles, etc. It sounds good, but in reality, this is the effort, time, and money that you or advertisers have invested, so why let Facebook change it on its own?

Over-relying on lookalike audiences.

Previously, a lookalike audience was an extremely powerful “weapon.” However, in recent years, its performance has significantly decreased. Even with a large list.

For example, for 100,000 customers, the resulting lookalike file is often not as effective as before.

Setting a daily budget on Facebook Ads is not just about “dividing money” for advertising. If you don’t understand the common mistakes at each level, it’s very easy to burn through money without getting results.

Tips for optimizing daily budgets on Facebook ads

With many years of experience working with advertisers, we will share with you the basic principles and practical strategies to optimize daily spending, ensuring both cost-effectiveness and sustainable results.

Basic principles before optimizing

Before you start, you need to understand how to determine your budget based on the average order value (AOV). This is a crucial foundation for setting up a cost cap or ROAS goal.

• You can get data from Google Analytics, MSRP on the landing page, or calculate the average AOV if your store has a wide variety of products.
• If your product catalog is too diverse, applying ROAS Bidding will be more suitable.
• A simple formula to calculate the daily budget is: CPA × 7.14.

This formula helps you achieve about 50 conversions per week, enough for the campaign to exit the learning phase. After that, let Meta operate on its own within the established structure. We often advise you not to interfere too much because Meta needs time to learn user behavior and optimize performance.

Assessing risks to determine reasonable bid and budget adjustments.

The most important goal is to make as few adjustments as possible. Meta has a huge amount of data more than any individual or advertiser, so let it automatically make optimal decisions. If changes are necessary, we recommend making a single major adjustment, rather than continuous minor interventions. This approach helps the campaign exit the learning phase faster and deliver clearer results.

Rules for using Cost Controls

Suppose you are running with a daily budget of 500 USD, spending the entire budget every day, and achieving the exact desired CPA. In this case, you might be missing out on opportunities for expansion. The simple solution is to increase the budget by 2–3 times, which helps you win more inventory in the auction and expand your reach to potential customers.

Balancing volume and efficiency

This is the step where advertisers most often face difficulties. To do it well, ask yourself four questions every day when you open your ad account:

Can I increase the conversion volume for this campaign?

Can I bid more aggressively to gain more volume?

I need to focus on better efficiency (lower CPA)?

How much am I willing to lower the average CPA in the upcoming attribution window?

• If you want to increase volume, expand your cost cap, and bid higher to acquire more customers.
• If you want more efficiency, tighten your cost cap, but note that Meta will still adjust bids around the set target.

Setting a daily budget for Facebook ads may seem simple, but it hides many mistakes that cause advertisers to waste money without being effective. If we understand the common mistakes and how to avoid them, the campaign will be more sustainable, optimizing both cost and performance. Always remember that the budget is not just a number, but also a strategy that determines the success of Facebook ads.

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