What is the ROI on Facebook ads per dollar paid?

Hi all, I'm looking to set up a small FB ad campaign and am asked what my campaign budget is. I couldn't find many breakdowns of what this meant. If I invest $1/$10/$50 per day, how does Facebook promote this? Understandable that a bigger budget = bigger reach, but how much so?

Does anyone have experience with FB ads? From my understanding, direct sales are extremely hard to come by, but likes and brand awareness is the more immediate outcome from a FB ad campaign.


Top voted answer
Scott Yang

Scott Yang, Founder at OzBargain.com.au

Top 30% Marketing

The best thing about Facebook ads is how much you can fine tune the targeting. Like what has already been suggested before, try to create multiple ads, target specific demographic and measure the effectiveness of your ads. Like all self-serve ads platform -- test, Test and more TEST!

Make sure your image and short blurb is catchy. Most people will be too busy scanning the timeline for their friends' status updates so you'll need something to divert their attention. Also utilise your own Facebook page and "Sponsored Stories" and your existing followers to build a bigger audience (if that's what you want, other than generating a sale).

We ran through some Facebook campaigns over the last 3-4 months and getting pretty good results. Our aim is building up genuine Likes, and found Facebook ads quite cost effective.

James Norquay

James Norquay, SEO Director at

I would test Facebook ads to be honest, for different products it works in different ways as you are selling chairs and stools possibly might not be a high interest item.

How ever their are other ways you can market via facebook for example:

- remarketing to your websites email list.

- Using offer ads: example 10% off chairs and stools.

We have seen better gains from these styles of advertising in the past for some products in the retail and FMCG niches. 

Sandy Moore

Sandy Moore, Owner and Online Strategist at

Top 10% Website

James is right when he says you should test Facebook. I also recommend running two ads at the same time. On Facebook, it is the image you use that is the biggest draw card to your ad. One idea to make your image stand out is to put a bright coloured boarder around it. Make sure your wording asks a question or is a strong call to action to make your audience click on the ad. When testing I would set the daily budget of $10 until you see which ad works best. Sparking brand awareness works best on Facebook compared to selling a product and a discount is also good to promote. Knowing your target audience will also help you when placing your ad as you can choose which country , State or City your preferred age group etc.  Plus you could also choose men or women etc.  This is where knowing your target audience will come in handy, especially when choosing your categories. I recommend when testing your ads that you keep a close eye on the stats to see which ad is working best for you. This is not something you should set and forget unless of course you have pre tested your ad. Then you can set your daily budget and let it run and do it's job. One last thing... you really need to be patient with Facebook if you want to advertise with them.... they have a bad habit of knocking your ad back several times before they eventually approve it.  This can be very frustrating. Although I haven't used Facebook advertising for a while.... when I did use it I had best results by placing my image sideways or up side down..... use your imagination.

Jenny Spring

Jenny Spring, Managing Director at Spring Into Sales

Top 10% Selling Online

There are 5 different types of ads you can run through Facebook. It depends what your goal is:  1. attract more Likers to your page 2. sign up people on your email list 3. sell a product/service via your website 4. announce a new product/service The effectiveness of your campaign depends on you: a. choosing the right ad b. highly defining the target audience The short answer is -- yes, I use them all the time - but I am a customer engagement specialist, and run workshops on Facebook.

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