How much should you spend on Facebook ads?
Plain answers for local business owners. From Taha at Urban Promotion. Updated November 2026.
A simple way to set your budget
- Decide how many enquiries you want a month
- Times that by a rough cost per enquiry
- That's your monthly test budget
- Divide by 30 for your daily budget
Published Australian guides often quote about $15 to $80 per lead for local services, and it changes a lot by industry and area. So 10 enquiries at $40 is about $400 a month, or $13 a day.
What changes how much you need
- How far you advertise: suburbs or the whole region
- How competitive your industry is
- How good your video is
- The time of year
- How much a customer is worth to you
Daily or monthly?
Facebook works in daily or total budgets, but think monthly. Some days will be quiet and others busy. Give it a few weeks before you judge it.
Mistakes to avoid
- Spending too little to learn anything
- Changing the ad every couple of days
- Spreading a small budget over too many areas
- Judging on likes instead of customers
Ad spend is separate from who runs it
The money above goes to Facebook. If an agency runs your ads, their fee is on top, so always ask. See what an agency costs.
Not sure ads are right for you yet? Read are Facebook ads worth it.
Rough figures from published Australian guides, November 2026. Many come from agencies, so treat them as a starting point. Your own numbers matter most.
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