How Much Does It Cost to Spend on Facebook Ads? A Local Business Guide

For many local businesses, Facebook Ads can feel like a gamble. You set a budget, run a few ads, and hope the phone rings or your appointment book fills up. The truth is, Facebook can be one of the most powerful tools for getting new customers — but only if you understand how the costs work and how to control them.

Let’s break down exactly what determines your ad spend, what you can expect to pay, and how to make sure every dollar turns into real leads and sales.

1. The Factors That Affect Your Facebook Ad Costs

Facebook ads are based on an auction system. You are not just paying for placement; you are bidding against other businesses targeting the same audience. Your cost will depend on:

• Audience Size: Smaller, highly targeted audiences usually cost more per click because you are competing for fewer eyeballs.
• Industry Competition: If you are a local plumber, dentist, or salon in a busy city, you will pay more than in a small town.
• Ad Quality: Facebook rewards engaging ads with lower costs. Poorly designed ads cost more to run.
• Objective: Choosing “Leads” or “Conversions” often costs more than “Engagement” — but delivers higher-quality results.

2. What Local Businesses Typically Spend

There is no one-size-fits-all answer, but here is a rough guide for small local businesses:

• Daily Budget: $10 to $50 per day for starter campaigns
• Cost Per Click (CPC): $1 to $4 for most industries
• Cost Per Lead: $10 to $50 depending on your service

If you are just starting, $300 to $1,000 per month is enough to gather real data and optimize your campaigns. Once you see positive results, you can scale up.

3. How to Keep Costs Low and ROI High

• Target locally to avoid wasting budget on people outside your service area.
• Use eye-catching images or videos that show your product or service in action.
• Test multiple headlines and offers to see which ones convert best.
• Retarget website visitors or past customers — they cost less to convert.

4. When to Increase Your Spend

If your campaign is consistently generating leads at a profitable cost, do not hesitate to increase your budget. Many local businesses double or triple their results simply by reinvesting into their best-performing ads.

The Bottom Line

Facebook Ads are not about spending the most money — they are about spending it wisely. By understanding how costs work, testing different creatives, and focusing on high-intent audiences, you can run profitable campaigns without breaking the bank.

Get in touch — we are here to help local businesses run Facebook Ads that bring in more customers and increase revenue.