In this article · 9 sections
- Step 1: Know what a customer is worth
- Step 2: Set a testing budget
- Step 3: Structure the test
- Step 4: Measure real outcomes
- Step 5: Scale gradually
- Suggested budget split
- Seasonality
- Frequently Asked Questions
- Can I run Meta ads with ₹200 a day?
- Daily or lifetime budget?
- Why did my cost per lead rise?
- Get help with Meta ads
"How much should I spend on Facebook ads?" is one of the most common questions from small businesses. There's no universal number, but there is a sensible way to decide — based on what a customer is worth to you and a structured testing phase.
Step 1: Know what a customer is worth
Start with simple numbers:
- Average order or job value (e.g., ₹5,000 taxi trip, ₹50,000 interior project).
- Profit margin on that sale.
- How many leads it takes to get one customer (your close rate).
- Repeat purchases over a year.
Example: if a job brings ₹2,000 profit and you close 1 in 5 leads, you can afford up to ₹400 per lead to break even — less if you want profit.
Step 2: Set a testing budget
Meta's delivery system needs data to optimise. For a first test, many small businesses spend a modest daily budget for 2–3 weeks — enough to generate a meaningful number of leads or messages. A practical starting range for local businesses is often ₹500–₹1,500 per day, but your category and city affect costs.
Step 3: Structure the test
- One objective (leads, messages or sales).
- One or two audiences — broad within your service area often works well now; avoid over-narrow targeting.
- 3–5 creatives (different hooks, videos and images).
- Don't change things daily — allow the learning phase to stabilise.
Step 4: Measure real outcomes
Track cost per lead, but more importantly cost per customer. Ask every new lead where they came from and note which ads led to sales.
Step 5: Scale gradually
- When an ad set delivers customers within your target cost, increase budget gradually (for example 20–30% every few days) rather than doubling overnight.
- Refresh creatives every few weeks to avoid ad fatigue.
- Add retargeting (website visitors, video viewers) with a smaller budget share.
Suggested budget split
| Purpose | Share |
|---|---|
| Prospecting (new customers) | 60–75% |
| Retargeting | 10–20% |
| Testing new creatives/offers | 10–20% |
Seasonality
Increase budgets ahead of peak seasons (wedding season, Diwali, summer holidays) when demand rises — but expect higher costs as competition increases.
Frequently Asked Questions
Can I run Meta ads with ₹200 a day?
Yes, but learning takes longer and results are less predictable. It can work for very local, low-competition offers.
Daily or lifetime budget?
Daily budgets are simpler for ongoing campaigns; lifetime budgets suit fixed-date promotions.
Why did my cost per lead rise?
Creative fatigue, seasonal competition, audience saturation or changes to the offer. Refresh creatives first.
Get help with Meta ads
Joboo Web plans and manages Facebook and Instagram campaigns. See Facebook ads or read about click-to-WhatsApp ads.