Are You Spending Too Much (or Too Little) on Facebook Ads?

Running Facebook ads without a clear budget plan can feel like pouring money into a black hole. Whether you’re a small business owner just starting out or scaling your digital marketing efforts, understanding how much to spend on Facebook ads is critical.

Let’s break down how to set the right Facebook Ads budget, what factors to consider, and how to avoid common mistakes — so you can boost your ROAS and reach the right audience effectively.

Why Facebook Ads Are Still Worth the Investment

Facebook advertising remains one of the most cost-effective ways to reach new customers — but without a well-defined digital marketing budget, businesses risk under- or overspending.

• Spending too little? You might not gather enough data or reach your target market.
• Spending too much? You might waste money without optimized campaigns.

Before we talk numbers, let’s be clear on why Facebook (and Instagram) ads are still one of the most effective marketing channels for SMEs:

• Huge reach: You can reach thousands of potential customers, even with a small budget
• Advanced targeting: You can narrow down by interests, behavior, demographics, and even retarget past visitors
• Measurable results: You can track every click, chat, and purchase

But to get those benefits, you need to plan your budget wisely.

What’s the Minimum Ad Budget for Facebook?

Technically, you can run ads for as little as 1,000 MMK/day (about $0.50/day).
 But to see meaningful results, especially for lead generation or sales, we recommend:

Minimum monthly budget:
 300,000 – 500,000 MMK/month (approx. $100–250)

This allows you to:

• Test at least 1–2 campaigns
• Run a full funnel (TOF, MOF, BOF)
  Gather enough data to optimize

Recommended SME Budget Ranges (Based on Your Stage)

How to Decide YOUR Budget

Here’s a simple 3-step framework:

1. Know Your Goal

Are you trying to:

• Get more page chats?
• Increase online orders?
• Drive app installs?

Your budget should match the cost per action you’re targeting. For example, if 1 lead costs 5,000 MMK and you want 100 leads, you’ll need 500,000 MMK in ad budget.

2. Use Your Revenue as a Benchmark

A common rule:
 Spend 5%–10% of monthly revenue on advertising.

So if your business earns 5 million MMK/month, your ad budget should be around 250,000 to 500,000 MMK/month.

3. Test and Adjust

Start with what you can afford, then optimize as results come in. Don’t expect ROI on day one—but track consistently, learn fast, and scale what works.

Bonus Tip: Don’t Blow the Whole Budget on One Ad

Many SMEs spend all their budget on one boosted post or a single sales ad. That’s risky.

Instead:

• Split your budget across TOF, MOF, and BOF
• Test different creatives and copy
• Use custom audiences and retarget warm leads

Even a smaller budget can work—if it’s structured smartly.

Final Thoughts

There’s no “perfect number” for every business. But there is a smarter way to approach your Facebook ads budget.

Start with your goals. Understand your numbers. Track your results. And focus on consistency over time, not just big spends once in a while.

When used well, Facebook ads are one of the most powerful tools SMEs have to grow—and you don’t need to break the bank to make them work.

Need Help Planning Your Ad Budget?

At Social Ads, we help businesses like yours build strategic ad funnels that make every kyat count.

Want us to help you plan your next campaign budget?
Book a free 30-minute strategy call, and let’s talk about how to match your budget to your goals.

[Schedule Your Free Call] or [Download Our Campaign Budget Planner]