How Much You Should Allocate for a Facebook Ad Daily?


Every day you see a lot of Facebook ads on your newsfeed. These Facebook ads are a way of marketing by many users as well as many businesses. You can see some good and interesting ads which include high quality images, great contents etc. While you may also see some ads on Facebook and find out that these ads lack the above mentioned aspects. One might think of the fact that what is the major reason behind all this?

Well, this can be based on the budget that is allocated in order to create an ad. This is one of the major reasons which I think is behind this fact.

Now here you might think that what should be the daily minimum budget for a Facebook ad?

There is no simple answer to this question. It is because many people relate different budget terms in creating a good Facebook ad. All these terms make sense and cannot be denied.

At the time you decide to run an ad on Facebook. The first thing that you are required to do is to create an ad campaign. This ad campaign should consist of an ad set as well as an ad within it. Now set the relevant keywords and the targeting options for your ad too.

What to Do ?

After performing these steps, you will now need to place your budget for the running of your ad. This budget can consist of a daily based budget or it can be set for a lifetime. It is upon your choice that whichever type of budget you prefer to set up. One important thing to note here is that whichever type of budget you choose just make sure that you set it higher than your minimum daily budget. This particular budget which you have set can surpass the limit of your account spending limit. The account spending limit is considered as the limit which you set by yourself apart from the budget of the ads system. In addition to this, when Facebook will calculate your spending of the total ad budget they will calculate it by considering the lower rate of both budgets.

Factors Affecting Minimum Daily Budget

There are many different factors which greatly affect your minimum daily budget. Some of these factors may include the CPC vs. CPM vs. OCPM vs. CPA. These factors greatly affect your minimum daily budget. In relation to this, the audience which you have planned to target also matters a lot. For example, if you plan to target broader audiences then you will find it cost effective. I do not recommend you to use it. Although it will cost you less but on the other hand, you may not find it effective.

What to know about Minimum Daily Budget?

Facebook has set up a minimum daily rate for the Facebook ads and that is $1. Facebook has set up this minimum rate for the ease of the users. It can benefit all those users whose ads features do not require a higher budget then this.  You may find the actual minimum as one of the complex ones. It is due to the fact that it is two times costlier than the individual clicks. Now if you decide to run the CPC ads which has a total cost of $1. Then in this case your actual daily minimum budget will be $2. Similarly, if you have a higher budget than this then you can go some expensive and more targeted Facebook ads. This can include running a particular ad with a CPC of $5. In this way your actual minimum daily budget will raise up to a total of $10.

It is all up to you whether you want to run a low minimum daily budget ad on Facebook or a one with a higher budget.

Settings of Budget  

Here I will give you an example regarding this. Suppose you have created a Facebook ad and then you are running that particular ad which comprises of a total cost of 10cents on per click basis. In this case you will have a minimum daily budget of $1. It is just because the “twice your CPC” is actually comprises of 20 cents in total. So, as a result it will still be measured under the rate of $1.

All these aspects are related when you actually run your ads on the Facebook. If in case, you run your ad on Facebook but do not make your ad visible to your audiences. Then Facebook will not charge you an amount of $1. It is necessary for you to run your ads on Facebook and make them visible among your audiences in order to get charged for it.

 Limit of Account Spending

Account Spending Limit Screenshot

The account spending limit is basically the total amount of money which you set up specifically for running of your ads on Facebook. It is considered as an inflexible limit of money which you can spend on running of your ads. This can be explained by a simple example. If for example, you fix up your account limit to a total of $400. At the time you run your ads on Facebook, this set limit for ads cannot cross the set amount of $400. Now if you are running your ads and spend $40 to run each ad then in this case you have reached your limit. Further if you desire to run more ads on Facebook then you will need to increase your set amount of budget.

The limits of account spending are optional. You can set one if you desire. If in case, you think that you will cross the set amount of your budget then I recommend that you should avoid setting this account.

Option to Make Changes

You have the option to make changes in it whenever you like. It is not an issue and there are no specific restrictions set by Facebook in this regard. Just try to avoid setting it to the amount which you have already spent on running these ads. That is lower than 10%. If for instance, you have spent a total amount of $150 on your ads. Then in this case you are not allowed to change it or make additions in the account spending limit that is anything less than $160.

One important thing to note here is that you cannot set up your account spending limit automatically. Every time you will need to go to the option of ads manager and then from there you can reset your desired limit manually. If in case, you do not see your ad running on the newsfeeds of the users on Facebook regardless of other aspects. Then you must make sure that you have set up an account spending limit first and if you have already reached the set level or not.

You also have the option to reset your account spending limit. This is useful in maximizing it.

What to know about Daily Budget

The daily budget which you set for running your ads on Facebook is basically the level of ad set settings rather than the account-wide. You set up different budgets which are fixed for the specific ads sets. Now here you must be aware of the fact that Facebook not the amount which you have set for running the ads rather it can run your ads according to your set budget. Here you can set any one of your ad to a daily budget of $50. In this case Facebook knows your set amount and will run your ads accordingly by spending just a total of $0 to $100.

The main reason behind setting up the daily budget is that it helps you out to regulate your ads. In this way you will not face the problem of spending more and more money on your ads after some time. Now if you have limited your daily budget to $400 and you are running four different ad sets. Each one having $50 of the daily budget. So you will reach your account limit after 2days in order to spend your set amount on running the ads.

What to Know about Lifetime Budget?

A budget that is set for a lifetime is known as the Lifetime Budget. In a broad definition, a lifetime budget is set for an infinite time rather that going through the hassle of setting it on a daily basis or after a short while. When you set up a life time budget you will not have to bother to reset it again and again also. This applies as a whole for an ad set in particular. One thing that you should note here is that you are allowed to set only one lifetime budget at a time.

You can understand this by an example. Suppose if you have an ad set which is filled with different occasional ads. That can include any ads like Christmas or related to New Year. These ads are particularly run created and then run for three months prior to the occasion. For this purpose, you set up your budget that is fixed to a total of $1500 in order use for running the ads. Now for this purpose you have the choice to set up a fixed budget of $1500 as a lifetime budget. Now in connection to this, due to the date restrictions set up for the occasion, your ad will run on Facebook remaining under the total amount of money.

Daily or Lifetime Budgets: What to Choose?

Now at this point a question may arise that which budget you should choose in order to run your ads. This can either be the Daily Budget or the Lifetime budget.

If you ask my point of view, I recommend you to choose the daily budget. It is because it is really helpful in managing the amount of money which you have set up for running your ads effectively. Moreover, if in any case your ads run out of your control and doesn’t provide some good results then in this case you can also use the option of daily budget.

A daily budget might limit your daily spent amount but on the other hand, it allows you to get the authentic and effective traffic every day. All this you can do by just remaining in your set budget. You can use it effectively if you want to target a large number of audiences. It also works well if you are focused on attracting a maximum number of audiences too. Moreover, you can also use the daily budgets in order to test your ads.

On the other hand, many users prefer using the Lifetime budget. It is because the lifetime budget is an ideal one if your ads do not comprise to focus on a broader target.The daily budget is not flexible, on the other hand, lifetime budget is quite flexible.

 What are you Paying for?

these ads are not free of cost, you should know that before you plan to use Facebook to run your ads.

Facebook charges you for running your ads and the impressions.Facebook has set up ten different general objectives. These objectives mainly include features like “boost your posts” “get installs of your app” and also “get people to claim your offer.” All these features are optimized for performing a particular action. For example, the page likes, app installs, or offer claims etc. If you use any of these features, you are charged accordingly.

When Are You Charged?

Example of Facebook Billing  

If you are running your ads on Facebook, then Facebook charges you for many different things. You may not have an idea of what Facebook is charging you for as well as how much amount they are charging you in total. I have compiled some of the main aspects in this regard.

First of all, Facebook can charge you on your Campaign Spending LimitsThey can charge you on the Maximum Spend Limits.If you don’t meet your timings or if they overlap then they can charge you.