Facebook Ads Costs: How to Calculate Your Budget
Posted: Sun Apr 20, 2025 4:14 am
Advertising on Facebook is the first choice for many companies when it comes to online marketing . This isn't surprising considering that there are approximately 2.8 billion monthly active users registered on Facebook worldwide. But how much do Facebook ads actually cost? How expensive is Facebook advertising, and how do I calculate my budget? These are important questions that many entrepreneurs ask themselves before starting social media advertising . In addition to the budget size, you should also know and lithuania phone number data understand key metrics such as cost per click (CPC) or cost per mille (CPM) in order to assess the profitability of your ads.
But don’t worry, we’ve summarized the most important costs for you in this article.
Table of contents
Budget for Facebook advertising and Instagram advertising
Determine KPIs and determine costs
Bidding Strategy
Influences on costs
Budget for Facebook advertising
The advertising budget is probably the biggest hurdle at the beginning. How much do you need to reach enough people? Is there a minimum amount?
The short answer is: There's no general answer. There's no mandatory minimum spend for Facebook advertising. Theoretically, you could spend as little as €5 per week. However, that won't lead to success .
Basically, before you decide how high your budget should be, you should think about whether you want to set a runtime or a daily budget.
The daily budget
As the name suggests, the daily budget is the amount spent daily. So, if you set a daily budget of €100, €100 will be spent (on average) per day. Why only an average? Well, Facebook will try to spend the budget as efficiently as possible. However, sometimes this isn't entirely possible for various reasons (e.g., due to the bidding strategy, see below). Therefore, it's possible that on some days only just under €85 will be spent, but on others, €105 will be spent.
Set a runtime budget
Just like the daily budget, the name already reveals the principle behind budget allocation. Unlike the daily budget, the runtime budget specifies a total amount that will be spent over the duration of the campaign.
The advantage of this is that this amount is spent based on demand and potential. Let's say you set a runtime budget of €1,000 for a 10-day campaign. On average, you should spend €100 per day. However, the runtime distribution gives the algorithm more flexibility.
Here's a small example: On some days, fewer users who fall into your target audience are browsing their feed, and the algorithm spends only €55. The next day, however, there are a lot of users willing to convert, and the algorithm recognizes the potential. So, it spends €180 that day.
However, since some campaigns cannot or do not want to be limited to a fixed duration, the duration budget is particularly suitable for campaigns with a precise timeframe. These include promotional campaigns like Black Friday, for example, where a start and end date are usually clearly defined.
But don’t worry, we’ve summarized the most important costs for you in this article.
Table of contents
Budget for Facebook advertising and Instagram advertising
Determine KPIs and determine costs
Bidding Strategy
Influences on costs
Budget for Facebook advertising
The advertising budget is probably the biggest hurdle at the beginning. How much do you need to reach enough people? Is there a minimum amount?
The short answer is: There's no general answer. There's no mandatory minimum spend for Facebook advertising. Theoretically, you could spend as little as €5 per week. However, that won't lead to success .
Basically, before you decide how high your budget should be, you should think about whether you want to set a runtime or a daily budget.
The daily budget
As the name suggests, the daily budget is the amount spent daily. So, if you set a daily budget of €100, €100 will be spent (on average) per day. Why only an average? Well, Facebook will try to spend the budget as efficiently as possible. However, sometimes this isn't entirely possible for various reasons (e.g., due to the bidding strategy, see below). Therefore, it's possible that on some days only just under €85 will be spent, but on others, €105 will be spent.
Set a runtime budget
Just like the daily budget, the name already reveals the principle behind budget allocation. Unlike the daily budget, the runtime budget specifies a total amount that will be spent over the duration of the campaign.
The advantage of this is that this amount is spent based on demand and potential. Let's say you set a runtime budget of €1,000 for a 10-day campaign. On average, you should spend €100 per day. However, the runtime distribution gives the algorithm more flexibility.
Here's a small example: On some days, fewer users who fall into your target audience are browsing their feed, and the algorithm spends only €55. The next day, however, there are a lot of users willing to convert, and the algorithm recognizes the potential. So, it spends €180 that day.
However, since some campaigns cannot or do not want to be limited to a fixed duration, the duration budget is particularly suitable for campaigns with a precise timeframe. These include promotional campaigns like Black Friday, for example, where a start and end date are usually clearly defined.