If you’ve ever asked yourself, “How much should I spend on Facebook ads?”—you’re not alone. Facebook (now under Meta) still ranks among the top platforms for advertising in 2025, but knowing how to set the right budget can make the difference between wasting money and seeing real results.
Let’s break it down together in a way that makes sense—whether you’re just starting out or looking to scale.
1. Start With Your Goal
Before you even open Ads Manager, ask yourself:
“What do I want this ad to achieve?”
Are you trying to:
- Build brand awareness?
- Drive website traffic?
- Generate leads?
- Get direct sales?
Each goal will affect how much you spend and how you measure success.
For example, getting clicks is usually cheaper than getting conversions, but conversions give a more direct ROI.
2. Understand Your Customer Value
You need to know how much a customer is worth to you. Let’s say you sell a product that gives you ₦10,000 profit per sale. If you spend ₦5,000 to get that customer, that’s a good return.
This is called your Customer Acquisition Cost (CAC). Your ad budget should always keep this in mind.
3. Start Small and Test
If you’re new, don’t break the bank.
Start with a test budget—say ₦5,000 to ₦20,000 for a week.
Use this to:
- Test different audiences
- Try multiple creatives (images, videos, captions)
- Monitor which ad performs best
Once you identify the best-performing combination, you can gradually increase your budget with confidence.
4. Use the Rule of 5-10%
A popular rule of thumb in 2025 is:
💡 Spend 5–10% of your monthly revenue on ads.
So if your business earns ₦500,000 a month, start by setting aside ₦25,000 to ₦50,000 for Facebook ads.
If you’re not earning yet? Allocate what you can afford to lose strictly for testing, not expecting instant profit.
5. Factor in CPM and CPC
CPM (Cost per 1,000 impressions) and CPC (Cost per click) vary based on your niche and target audience. In Nigeria, for instance, CPM can range from ₦200 to ₦2,000, depending on targeting.
Knowing your average CPM/CPC helps you estimate how many people will see or interact with your ads for a given amount.
6. Include Creative and Management Costs
Your Facebook ad budget isn’t just for running ads.
Don’t forget:
- Content creation (images, videos, designs)
- Copywriting
- Ad management (if you’re hiring someone or using tools)
Set a separate amount aside if you’re outsourcing any of these.
7. Use Campaign Budget Optimization (CBO)
In 2025, Meta’s CBO feature can help you spend smartly. Instead of setting individual budgets for each ad set, Facebook automatically shifts your spend toward the best-performing ones. Let the algorithm help you save money.
8. Track Results and Adjust
Review your results weekly or bi-weekly. If you’re not hitting your targets, adjust:
- Your targeting
- Your creative
- Your offer
- Or your budget
The worst thing you can do is set a budget and forget it. Facebook ads are powerful, but they need monitoring.
In Summary:
To determine your Facebook ad budget in 2025:
- Know your business goal
- Understand your customer value
- Start small and test
- Apply the 5-10% rule
- Factor in platform metrics
- Include creative costs
- Use CBO
- Monitor and tweak regularly
Don’t be afraid to experiment, but always let your data guide your decisions. That’s how you turn Facebook ads from a money pit into a money-maker. Still have questions? Contact us today!