How much should a local business spend on Facebook ads?
By the Fullday team · Published
A local business should spend what its own numbers support, not a figure someone else picked. Work out what a booked job is worth, the most you'd pay to get one and how many you want a month. Multiply the last two for a monthly budget, then start small, with few enough ad sets that each has enough to learn.
How do you work out the budget?
With four numbers you already have or can find in an afternoon. Pull last month's bookings and the jobs they turned into, then do the sum below. It gives you a budget tied to profit instead of a guess.
- Value of a booking: your profit on a typical job times the share of bookings that become paid work
- Target cost per booking: the part of that value you're willing to pay Meta to get one
- Bookings you want a month: what your crew or calendar can actually handle
- Monthly budget: target cost per booking times the bookings you want
How much should you be willing to pay for one booking?
Less than it's worth, by a margin you choose. Whatever you don't spend to get the booking is what you keep, so set your target cost per booking before the ads run, and judge every ad against it. If a booking is worth little to you, Facebook ads may not pay for that service.
What's the least you should spend?
Enough for each ad set to learn, which is a different thing from Meta's minimum daily spend. Meta says an ad set's delivery is less stable during its learning phase and that significant edits restart it. Spread a small budget across many ad sets and each one gets fewer results, so it takes longer to settle. Use fewer ad sets and give each a real share.
How should you start and adjust?
Start small, with one offer and one ad set, and judge it on cost per booking once enough bookings come in to mean something. Change one thing at a time, the budget, the audience or the ad, then wait, so you know what moved the result.
Ad spend goes to Meta from your own ad account, charged to your card. Whoever runs the ads, keep the account in your business's name so its history stays yours.
How does Fullday handle ad budgets?
Fullday Growth ($997/month) runs ads in your own Meta ad account on the daily budget you set. You also set a monthly limit, and it asks before going over it; bigger budget changes wait for your yes. Ad spend is separate from the plan, billed by Meta to your card. It judges ads on cost per booking, but results still depend on your offer, market and budget.
Sources
What Fullday sets up for this
- Ads agent. Makes and runs your Facebook and Instagram ads in your own ad account, on the Growth and Pro plans.
- CRM. Every call, text, email and ad lead in one list, from new to won.
Plans start at $297 a month with a 7-day free trial, no contract. Ads and the search agent are on Growth, $997 a month.
A screen from the demo business. The people and numbers are sample data.
Related questions
How long before I know if my budget is working?
Long enough for each ad set to get through its learning phase and for bookings, not just leads, to come in. Decide in advance how many bookings you'll wait for before you change anything.
Should I spend more in my busy season?
Spend more when bookings are worth most and you can serve them. If your calendar is already full, more spend brings leads you can't take. If you expect a slow month, raise the budget gradually ahead of it so the ads have time to settle.
Does the ad budget include an agency's or software's fee?
No. Ad spend is what you pay Meta to show the ads. Any agency or software fee is on top, so add both together when you work out what each booking really costs you.
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