How much Facebook ads cost

Facebook advertising is becoming a powerful “weapon” to help small businesses reach the right potential customers and significantly increase profits thanks to its precise targeting ability and impressive ROI. However, one of the most concerning questions for many business owners is: How much do facebook ads cost? In this article, BHW will analyze the current cost of facebook ads with you, while sharing optimization tips for businesses to both control their budget and generate sustainable profits.

As an official Facebook partner, BHW Agency owns a powerful ad account portfolio with diverse time zones, currencies, and countries, flexibly meeting all advertising needs. Our team of Facebook ads experts has deep knowledge of algorithms and extensive practical experience in many different industries. Thanks to this, BHW Agency has become a leading reputable and professional place for renting restaurant ad accounts on Facebook today.

Beyond providing quality accounts, we also offer comprehensive advertising solutions with full accompanying services. With over 11 years of experience in the industry, the team of Facebook ads experts at BHW will always be with you, from strategic consulting to in-depth technical support, helping your campaigns achieve optimal effectiveness.

How does Facebook score ad auctions?

In an auction, advertisers will set a bid, which is the maximum cost they are willing to pay for an action (click, impression, or conversion). The winning ad is the one with the highest total score, which is determined based on three factors:

• Estimated action rate: Facebook estimates the likelihood that you will take the desired action after seeing the ad.
• Ad quality and relevance: The more appealing your ad is and the more relevant its content, the higher your chances of winning.
• Bid: This is the maximum amount you are willing to spend on an action, which differs from the overall budget.

The important thing is that you do not always have to pay the exact maximum bid. For example, if you bid 30 cents per click, while a competitor only bids 23 cents, you might only need to pay 24 cents to win.

How much Facebook Ads cost?

In reality, the cost does not have a fixed number, but will depend on your campaign goals, revenue, as well as how you allocate your budget. Below, we will provide a detailed analysis to help you get a clearer view.

Budget depends on the objective

Facebook divides campaigns into 3 stages according to the “customer funnel”, with each stage having different cost levels:

• Awareness: This is the cheapest stage, suitable for many people to know your brand. Minimum budget: 5 USD/day (very suitable for beginners).
• Consideration: The goal is to increase engagement, traffic, and leads. Minimum budget: 15–20 USD/day.
• Conversion: This is the most difficult and expensive stage, as you are targeting the group of customers who are ready to buy. There is no fixed amount, you need to calculate based on many specific factors (we will guide you on how to calculate later).

Ad budget based on revenue

A general rule that advertisers often apply: marketing budget = 5–12% of monthly/annual revenue. For example:

• Revenue of 110,000 USD/month → 7% = ~7,700 USD for ads.
• Revenue of 50,000 USD/month → 10% = 5,000 USD.

Note: This budget only accounts for ad spend and does not include agency fees or management personnel.

Use a Facebook ads budget calculator to calculate advertising costs.

You can use the ad budget calculator (Google sheet) to get a more accurate number. This tool is based on:

• Product price
• Repurchase frequency
• Lifetime value (LTV)
• Conversion rate
• Number of new customers you want to acquire per month

The results you will get:

• Target number of new customers
• Monthly ad budget
• Daily ad budget

Personnel/agency costs

Facebook advertising costs also depend on who manages the campaign:

• Freelancer: 25–100 USD/hour. Flexible and cheaper than an agency, but the quality can be inconsistent.
• Agency: 500–5,000 USD/month (or even >10,000 USD). They have a team of experts and offer all-inclusive services, but the cost is higher.
• In-house: Full-time staff 50,000–100,000 USD/year. Provides good control, but requires high expertise.
• Software/Automated programs: 0–500 USD/month. Convenient and includes analytics, but still needs supervision from you or your team.

How advertisers optimize their Facebook ad budget.

When running ads on Facebook, managing and optimizing your budget is a decisive factor for success. Any advertiser who does not allocate it properly can easily fall into the situation of “money spent but no customers gained”. The following are ways to implement this, drawn from the practical experience of BHW.

Determine your actual budget

First, you need to know exactly how much you can spend on advertising. For example, if you have 1,000 USD/month, this means an average of about 33 USD/day to invest. This will be the basis for calculating the number of ads and a suitable strategy.

Define target KPIs

The budget is only truly meaningful when linked to KPIs. Depending on the industry, the KPIs can be CPL, CPA, or CPB.

• For B2B services, the cost per lead typically ranges from 20–40 USD, you can use an average of 30 USD as the standard.
• For Info-products, you need to carefully calculate the breakeven point: the closing rate, customer participation rate, and qualified lead rate.
• For E-commerce, you should base it on the cost of goods sold (COGS), selling price, and gross profit. For example: COGS = 5 USD, selling price = 15 USD → gross profit = 10 USD → target CPA = 10 USD.

Determine the number of ads you can run.

A simple formula for advertisers is:

Number of ads = Daily budget ÷ Target CPA

For example:

• Daily budget $33, CPA = $30 → only enough for 1 ad.
• Daily budget $33, CPA = $10 → can run 3 ads.
• Daily budget $33, CPA = $100 → not enough for 1 ad → you need to let the ads run longer to collect enough data.

Step 4: Ad run time before turning off.

A common mistake is turning off ads too early. Our recommended rule is to wait at least 48 hours and spend about double the target CPA before making a decision. For example:

• Target CPA 30 USD → let the ad run for at least 2 days and spend 66 USD before evaluating.
• If the target CPA is higher than the daily budget (e.g., CPA = 100 USD, budget = 33 USD) → let it run longer, about 6 days, for accurate data.

Strategy for running multiple ads with CBO

When using CBO, Facebook automatically distributes the budget among the ads. There will be 4 common situations:

• Low-spend ad → no results → turn off.
• Low-spend ad → good results → still have to turn off due to lack of data.
• High-spend ad → poor results → turn off.
• High-spend ad → good results → keep it (winner).

Our experience is: When turning off 1–2 ads, replace them with new ads, to avoid being completely dependent on one winner (which usually “burns out” after a few weeks).

Practical principles for optimizing Facebook ad budget

Advertisers should keep in mind a few principles:

• Allocate 5–12% of revenue to advertising to ensure growth potential.
• Spend at least 2–3 times the product price per day to get data quickly. For example: a 50 USD product → you should spend 100–150 USD/day.
• Do not run ads if the product does not have product-market fit. Try selling organically first to prove market demand.
• Run ads yourself before hiring an agency, so you have a basis for evaluating the true effectiveness.
• Pay attention to seasonality: during Black Friday, Christmas, Independence Day… CPM often increases sharply due to high competition.

Facebook advertising cost does not have a fixed number, but it depends on many factors such as industry, target audience, ad quality, and bidding strategy. Businesses need to continuously test, monitor, and optimize to both control the budget and achieve maximum effectiveness. If used correctly, Facebook Ads will be a sustainable, profitable investment channel for all brands.

Frequently asked questions

💬 Contact now for free consultation from BHW!

• Website: https://vi.blackhatworld.io/
• Telegram: @bhw_agency
• Whatsapp: +84819001811
• Wechat: bhwagency
• Email: [email protected]

This article is also available in other languages:

• 中文： 
• Русский: 
• English: How much Facebook ads cost