There are many different numbers thrown around whenever you’re trying to figure out how much should you budget for Facebook ads. The answer will be different depending on your campaign goals (as you can be charged for impressions or clicks), your target audience, your products, and many more. But, for an online store or a DTC brand the most important part of your budget is understanding how much your conversion campaigns will cost. As I like to say, if you’re paying for traffic, it better be converting to sales.
How much should you budget for Facebook Ads?
The answer is, like everything else in life, it depends. Your budget will depend on how well your website converts traffic to buyers (conversion rate), how much you’re paying for that traffic (cost per click) and of course, your revenue goals.
Let’s look at some online retail averages below and my Facebook Ads budget calculator for online stores to help you make informed decisions.
Facebook Ads Average CPC
The average cost per click for retail is $0.70 and even lower for clothing stores ($0.45), which means that you’ll pay $70 ($45 for clothing stores) on average to bring 100 clicks to your website.
Facebook Ads Average CVR
The average Facebook Ads conversion rate for retail is pretty high at 3.26% and even higher for clothing stores at 4.11%. Which means that for every 100 clicks, 1.91 clicks will convert to buyers. This is important because the more clicks you can convert to buyers the less you’ll pay for a conversion.
Facebook Ads Budget Calculator
Please add you historic CVR, CPC, and your sales goal. If you’re just starting out with Facebook ads please use the online retail benchmark data to get an idea on how much you expected to pay for your conversion campaigns.
Please note: The calculator only takes into account campaigns that drive traffic to your website where you charged by the click and does not take into account impression based campaigns.
It’s time to grow.
Spending a fortune on advertising and still not seeing results? Sales declining for no apparent reason? Campaigns not working? Customers no longer responding to promotions?