Ad Budgeting 101: How Much Should You Spend on Meta and Google Ads?
Let’s be real—setting an ad budget can feel like throwing spaghetti at the wall 🍝. Too little and you don’t get results. Too much and you’re wondering where your money went.
So how do you figure out the right amount to spend on Meta or Google Ads?
Good news: it doesn’t have to be a guessing game.
Whether you’re new to paid ads or just want a smarter strategy, this guide will help you understand how to approach your digital ad budgeting with clarity and confidence.
🎯 First, What’s the Goal?
Before we even talk numbers, ask yourself: What am I actually trying to achieve with these ads?
Are you:
Building brand awareness? 📣
Growing your email list? 📬
Selling a product or service? 🛍
Re-engaging past visitors? 🔁
Each goal requires a different type of budget—and a different expectation for results. For example, lead generation usually costs less than direct purchases, but it’s a longer game.
Get clear on what success looks like before you spend a dime.
📊 Know Your Numbers (They’re Your Best Friend)
You don’t need to be a numbers wizard 🧙♂️—but you do need to know a few basics to build a smart ad spend strategy:
Customer Lifetime Value (CLV): How much is a customer worth to you long-term?
Cost Per Acquisition (CPA): How much can you afford to spend to get that customer?
Conversion Rate: How well does your landing page actually turn clicks into results?
A quick rule of thumb:
If it costs you $40 to get a customer who ends up spending $200, that’s a solid return.
If you’re paying $80 to get a $50 sale... something’s off.
💰 What Should You Actually Spend?
Now to the good stuff. 👀
If you’re testing the waters, aim for $500–$1,000 per platform per month. This gives the algorithm enough data to work with, and gives you enough insight to make smart decisions.
Not ready to spend that much? That’s totally fine—just set realistic goals (like traffic or lead gen instead of direct sales).
Here’s a simple formula:
Ad Budget = Target CPA x Number of Customers You Want
So if your goal is 10 customers at a $50 CPA, your starting budget is around $500.
📉 A Quick Word on Benchmarks
Benchmarks are helpful—but not gospel. Your audience, industry, and offer all impact results.
That said, here’s a rough guide:
Lead generation:
Meta Ads (Facebook/Instagram): $5–$30 per lead
Google Ads (Search): $15–$70 per lead
Website clicks:
Meta Ads: $0.50–$2.00 per click
Google Ads: $1–$4 per click
Online sales (Return on Ad Spend / ROAS):
Meta Ads: 2–4x return
Google Ads: 3–5x return
Your results may vary—and that’s okay! The key is to test and adjust as you go.
⚙️ Don’t Forget the “Other Stuff”
Your ad budgeting isn’t just about the dollars. It’s about how well those dollars are working.
Things that also matter:
Clear, compelling landing pages 🖥
Strong creative direction 🎨
Messaging that speaks to your ideal customer 🗣
A clean path to convert 🛒
Even the best ad won’t perform well if it’s pointing to a confusing or outdated website. Make sure your funnel is solid from start to finish.
📈 Scaling? Go Slow and Smart
Once you’ve found a winning ad or audience, don’t rush to double your budget overnight.
Instead:
Increase slowly (10–20% every few days) ⬆️
Keep an eye on performance 📊
Refresh creative to avoid ad fatigue 💤
Small, steady scaling keeps your results consistent—and your costs in check.
💬 Final Thoughts
There’s no magic number when it comes to ad budgets—but a smart ad spend strategy will make sure every dollar has a job to do.
Start with your goals, know your numbers, and focus on continuous improvement. Paid ads aren’t set-it-and-forget-it—they’re launch it and learn.
Need help getting started with ads?
👉 Book a free consult and we’ll make a plan that works for your business.
