I’ll never forget a conversation I had with one of my former employers. He asked me to prepare a Meta ads budget for the company. And I just shouted inside my head “Me? Budget? I thought it’s the boss that picks a random amount, we run ads, and hope the results is good.
Turns out, I was very wrong. Sound familiar? See, I used to think budgeting for ads was just guesswork, slap in a number, hope for conversions, and blame the something when it flops. But there’s actually a method to it. A strategic way to approach ad spend that aligns with your business goals.
What inspired this article? I was recently listening to a Bizlift interview with Mrs. Chioma, founder of Sophix Naturals. They touched briefly on how to pick an ads budget, and I thought to myself, “Ah, I’ve seen trenches in Meta Ads Manager to write on this properly.”
You see, Meta ads aren’t like traditional advertising where you pay a flat rate and hope for miracles. It’s an auction system. Every time someone scrolls through Instagram or Facebook, you’re competing with hundreds of businesses for attention and whoever bids best, wins that attention.
If you don’t understand how to set your Meta ads budget properly, you’re basically showing up to a knife fight with a spoon.
Most business owners make one of two mistakes:
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They go too small, setting a ₦2,000/day budget and then wondering why nothing’s happening.
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Or they go too big, blow through ₦200k in a week without strategy, then conclude ads “don’t work.”
Both approaches will leave you frustrated, broke, and ready to curse the algorithm.
In this article, I’ll walk you through how to find that sweet budget spot that fits your business — not just your wallet.
What a Meta Ads Budget Really Means
Before we go deep, let’s break some big grammar. Your Meta ads budget is simply the money you’re willing to spend on Facebook and Instagram ads (both owned by Meta).
But what are you really paying for?
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CPM (Cost Per 1,000 Impressions): What it costs to show your ad 1,000 times.
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CPC (Cost Per Click): How much you pay when someone clicks.
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CTR (Click-Through Rate): The % of people who click after seeing your ad.
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ROAS (Return on Ad Spend): How much revenue you made versus what you spent.
So when you throw ₦10,000 at Meta ads, you’re not just “trying your luck.” You’re paying to grab attention, gather data, and drive informed action be it leads, sales, bookings, or brand awareness.
Why Budgeting Matters
Let’s say you don’t budget properly. What happens?
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You spend small-small money every week but have nothing to show.
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You test nothing. You learn nothing.
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You expect ₦1 million in sales from a ₦5k budget. Na who do you?
Here’s what usually goes wrong:
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You overspend and don’t track ROI.
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You underspend and your ads don’t reach enough people to even learn what works.
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You under-test and never improve.
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Your ROAS is poor and you spend more than you make.
Running ads without a clear budget is like cooking without tasting. You’re just hoping the soup turns out nice.
3 Smart Approaches to Setting Your Meta Ads Budget
Let’s break it down into practical strategies.
1. Budget Based on Monthly Revenue
This was the method Mrs. Chioma, founder of Sophix Naturals, shared in her Bizlift interview. She said she allocates 10% of her gross monthly revenue to marketing — and then a portion of that to Meta ads.
Rule of thumb: Set aside 5–10% of your monthly gross revenue for marketing. Then allocate 30–50% of that to Meta ads.
Pros:
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Keeps ad spend aligned with your business size.
Cons:
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If revenue is low, ad budget may be too small to generate traction.
2. Budget Per Funnel Stage
Every buyer moves through 3 core stages:
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Awareness; “Who are you?”
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Consideration: “Hmm, interesting.”
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Conversion: “Take my money.”
A good funnel-based budget split might look like this:
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60% Awareness
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25% Consideration
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15% Conversion
For a ₦200,000 budget:
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₦120,000 – Reach, engagement, video views
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₦50,000 – Traffic, lead gen
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₦30,000 – Retargeting + purchase-focused campaigns
Why this works: Most Nigerians (and frankly, humans) won’t buy from a stranger. You have to warm them up first.
3. Cost Per Result Target
This one’s for the math-loving folks.
Step 1: Calculate how much a customer is worth.
Step 2: Decide what you’re willing to spend to get one.
Step 3: Multiply that by your goal.
Example:
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Product sells for ₦50,000
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You’re okay with ₦5,000 per lead
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You want 20 leads → You’ll need a ₦100,000 budget
Typical Nigerian averages:
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Lead: ₦1,000–₦3,000
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Sale: ₦3,000–₦10,000
This approach helps you plan from the goal backward, which is way smarter than just picking a random daily spend.
How Much is Enough?
✅ Testing a new offer? ₦20k–₦50k works.
✅ Want steady monthly growth? ₦100k–₦300k if you’re earning consistently.
✅ Scaling? You may need ₦500k+ but by then, you’re reinvesting profits, not gambling.
Start with what you have even if it’s ₦5k. But adjust your expectations. No ₦5k ad is bringing you ₦500k in sales unless you’re selling long life.
Pro Tips for Better Results
Here’s the real sauce:
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Test 3–5 creatives per campaign. A wise marketer once said: 1 campaign, 1 ad set, 3–5 creatives.
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Build a funnel: Cold → Warm → Hot. Don’t sell straight to strangers.
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Use retargeting: Most sales happen after 3–7 exposures.
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Be consistent: Ads aren’t a magic wand
Meta Ads Budget Checklist (Quick Summary)
✅ Decide your total monthly ad spend.
✅ Choose one budget method.
✅ Set realistic campaign goals.
✅ Test multiple creatives.
✅ Plan your funnel and stages.
✅ Retarget warm audiences
✅ Track weekly.
✅ Optimize monthly
Print it. Stick it beside your laptop. Thank me later.
Next steps:
Look, all the strategies in this post are gold. But if you’re too busy or tired of running campaigns that don’t convert…
Click Here to hire a media buyer who will treat your ad budget like it’s their own money.
Let’s plan, test, and scale your ads with intention.
