Facebook Ads: How to estimate your investment budget on Facebook?

As a web marketing agency, many of our clients often ask us what budget should be invested in online advertising. It is clear that investing in Internet advertising must be done strategically to ensure they have an excellent return on investment.

Whether on Google AdWords, Bing, Twitter and Facebook, a strategy must be developed in order not to lose online advertising money. Unlike Google AdWords, Facebook Ads does not work based on research conducted by users through keywords. Facebook uses targeted audiences to distribute ads. Therefore, Facebook is an excellent platform to increase the visibility of a company in order to reach new people.

Before embarking on a Facebook advertising campaign, we must first understand what it means to be able to determine the appropriate budget to invest in your business’s ad campaigns.

Why advertise on Facebook?

With 1.59 billion active users worldwide, Facebook has the potential to reach a very specific audience. The natural range of advertisements is in free fall due to Facebook’s business model, which tends to emphasize its own advertising platform. While good community management guarantees you visibility, it is nothing compared to the options provided by Facebook Ads.

Each Facebook advertisement can reach large numbers of people. Overall marketing agencies encourage companies to spend at least $1 a day on Facebook to reach 4,000 new people.

Indeed, the minimum daily budget to spend is $ 1 on Facebook. If a company hopes to increase its visibility, it can begin to do so with a low budget. Although Facebook has incredible reach, we must not lose sight that a company must pay attention to its own target audience. With different targeting options, any company can distribute its ads on Facebook directly to their target market.

For example, a company specializing in the international relocation of other enterprises can target specific enterprises that have offices in different countries. Use of Facebook advertising is therefore an excellent way to reach new potential customers.

Advertising expenditure on Facebook

Before you show your ads on Facebook, it is important to understand how advertising expenditure works on the social network. You can first establish a daily budget that will be the amount you’re willing to pay for advertising.

ent les dépenses publicitaires fonctionnent sur le réseau social. Vous pouvez tout d’abord établir un budget quotidien qui correspondra au montant que vous êtes prêt à payer pour une publicité.


Then, the overall budget on Facebook allows you to set a maximum amount to spend on a set of ads on a given period. If a company wants to spend $1,000 over 45 days, Facebook will ensure that your expenses do not exceed $ 22 per day. However, if you were to spend $ 20 one day, your budget will be adjusted so that you spend about $ 1,000 after 45 days.

If you know exactly the amount you want to invest on Facebook either daily or overall, great. But if you do not know, then you need to first think about your goals.

Objectives of the Facebook Ads campaign

When creating a new Facebook advertising campaign, you will be asked what is the purpose of your campaign. Do you want to put your ads in the spotlight? Do you want to promote your page or increase your number of likes? Or do you want to increase the number of conversions on your website?


pub-facebook-budget-2It is important to set goals before estimating your budget. A company will certainly not pay the same price for a conversion on a website as it would for new “likes” on its Facebook Page.

Jon Loomer also estimates the price to be between $0.50 and $1 with Facebook Ads in order to gain a new like on his page. As for product of $100, a cost per conversion of $30 can be expected. Obviously, these figures differ from one company to another.

However, this clearly demonstrates that according to the objectives of a company, the budget to invest in Facebook will be completely different.

Estimate your budget on Facebook

In order to increase traffic to your website or to increase conversions, there is a very interesting method to get an estimate of its budget on Facebook.

Potential reach

First, estimate the potential reach of your advertising on the audience you want to target. If a company wants to target people aged between 18 and 65 in Canada, the potential reach would be 21 million people, for example. These numbers can be found when creating an ad in the Ads Manager on Facebook.


We recommend not to start running your ads with too broad an audience. Indeed, in choosing too broad an audience you may not target people likely to be interested in your products and so you would use up your budget unnecessarily. Therefore, it is best to start your targeted Facebook Ads audience with a potential reach of 40,000 people.

Even if you are targeting 40,000 people, it is not certain that your Facebook Ads will reach 40,000 new people. It was noticed by a British agency that only a quarter of ones target audience is touched during the diffusion of ads. Obviously this depends on the different campaigns used. But if we take this into account, and we recommend that you divide your potential audience by 4 (40,000/4 = 10,000).

Estimate the number of impressions and click-through-rate

The number of impressions per user (the number of times your ad will air) can vary from 15 to 20 for an audience of less than 10 000 people. Thus, for calculating the number of impressions, just do the following calculation: 10,000 x 15 = 150,000. Your ad on Facebook could potentially be aired 150,000 times.

CTR differs for each Facebook advertisement, but the click-through-rate that is still acceptable for a specific product on the platform can be estimated at 0.015%. So for an audience of 10,000 people, you could get 150,000 impressions and the following number of clicks per day: 150,000 x 0.015% = 22.5 clicks.

By multiplying the number of clicks per day with 30 potential days, so you can get a monthly estimate of possible clicks: 22.5 x 30 = 675 clicks.

Estimated budget

pub-facebook-budget-4After getting a good estimate of the size of your target audience, your impressions and the number of clicks per month, you can now calculate your estimated budget per month.

With the suggested bid by Facebook to the cost per click when creating an advertisement, you will thus be able to multiply the number of clicks per month by this bid. Suppose the suggested bid is $ 1.64, the monthly cost would be $1,107, with the following calculation: 675 clicks x $1.64 = $1,107.

To an audience of 10,000 people, you can expect to get 675 clicks per month for a monthly budget of $1,107. Obviously, these calculations are not an exact science but it can give you a good idea of the amount you can invest on Facebook.


Increasing the visibility of a company through Facebook is a great idea. However, before you embark on such an investment, ask yourself the right questions: What are my goals? What budget am I willing to spend?

By having a good idea of your goals and your budget, you can estimate the amount to invest in Facebook through this very simple method. Again, we do not guarantee you will get the results give these calculations. But you can consider it as a basic idea before you jump into Facebook Ads.

If you have more questions about Facebook advertising, please contact us directly!

Facebook Ads: How to estimate your investment budget on Facebook?
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