Introduction: The Big Budget Question
One of the first questions business owners ask before launching Facebook ads is simple — how much should I spend? The truth is, there’s no single number that works for everyone. It depends on your goals, audience size, and the value of your product or service. But in 2025, with ad costs rising and competition increasing, it’s more important than ever to set a realistic budget that gives you enough data to see results without overspending.
What Determines Your Facebook Ad Budget
1. Your Business Goals
If your goal is brand awareness, you can start small. But if you want leads or sales, you’ll need enough budget for Meta’s algorithm to learn who converts. Typically, conversion campaigns need at least 50 conversions per week to optimise properly.
2. Your Industry and Offer Value
A business selling £50 products can’t spend the same as one selling £5,000 services. Industries like finance, construction, and legal tend to have higher click costs but also higher customer value — meaning the ROI can still be strong.
3. Your Audience Size
Targeting an entire city will cost more than targeting a 5-mile radius around your business. Keep targeting narrow to avoid wasting spend.
Average Facebook Ad Costs in 2025 (UK)
While results vary, here are typical averages small businesses can expect:
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Cost per Click (CPC): £0.50 – £2.50
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Cost per Lead (CPL): £10 – £40 for most service-based businesses
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Cost per 1,000 Impressions (CPM): £7 – £15
So if you’re aiming for around 30 leads per month at £20 each, you’ll need roughly £600–£800 per month in ad spend.
Recommended Budgets for Small Businesses
|
Campaign Goal |
Recommended Monthly Spend |
Notes |
|---|---|---|
|
Brand Awareness |
£150 – £300 |
Broad targeting, video views or reach campaigns |
|
Lead Generation |
£500 – £1,000 |
Ideal for local service businesses |
|
Sales / Bookings |
£750 – £1,500 |
For higher-ticket or appointment-based offers |
|
Retargeting |
£100 – £200 |
Ongoing warm audience engagement |
It’s better to run a smaller, focused campaign with good creative than to spread a big budget across poorly performing ads.
How to Make the Most of a Small Budget
Start with Testing – Begin small (£10–£20 per day) to test audiences and creative. Once you find what works, scale up gradually.
Use Video to Lower Costs – Video ads often deliver cheaper impressions and higher engagement.
Retarget Everything – Even with a small budget, allocate 10–20% to retargeting website visitors or people who engaged with your page.
Track and Optimise – Use Meta’s Pixel and Conversions API to track results accurately. Review your campaigns weekly and shift budget to top performers.
Automate Follow-Up – The fastest way to waste budget is by not responding to leads. Tools like AI-powered SMS appointment setters (used by My Media Agency) ensure no enquiry gets ignored.
Quick Wins You Can Apply Today
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Start with a minimum £300 test budget.
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Track your cost per lead to identify break-even points.
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Use short videos for engagement, retarget with testimonials.
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Review your data weekly, not monthly.
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Increase spend only once your campaign is profitable.
Bringing It All Together
So, how much should a small business spend on Facebook ads in 2025? Enough to generate consistent data, not guesswork. Starting with £500–£1,000 per month gives Meta enough room to learn and gives you meaningful insights without breaking the bank.
When managed correctly, even a modest budget can generate consistent enquiries and new clients. At My Media Agency, we help small businesses make every pound count — combining smart targeting, video content, and automation to turn ad spend into measurable results.
Outbound Link: Meta Business – Ad Budgeting Guide