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How much Ad Budget do i need?

learn how facebook & Google Charge.

For Facebook Ads, a charge of 7% GST in payable in Singapore and all relevant taxes internationally. So if you’re an advertiser in Singapore, do take this into account for your budgeting. 

For Google, it depends on which country you’re in. For example in Singapore, they’re not charging GST yet. But in some countries, relevant taxes may apply. So do check on this first.


Minimum required spend on facebook and google

For Facebook Ads, there’s a minimum spend of $5 per day +7% GST. For Google spend, there is no minimum spend per day. That being said, with almost every business all over the world bidding to get their Ads shown on these 2 major platforms, a minimum spend will not get you anywhere unless your brand is an established one. Our recommendation is to go for at least a minimum of $500 Ad spend per month. For property agents, you should be looking at a minimum of $1000 Ad spend per month. Most small businesses spend an average of $4,000 per month to get good results and meet their targets. 

Match the ad objective & budget

Ads that go for impressions and reach cost lesser to reach a wider audience vs and Ad that is optimised for consideration and conversion. The lower the funnel, the higher is the cost unless your Ad has been running for a few months or years and reach its optimisation level then the cost will be lower greatly. 

Machine learning or AI takes time to learn how the audience react to your Ads. So if you keep changing and switching, this is bad for machine learning to take place. Editing of Ads should only be done in a measured way and not done rashly.

Match industry or product against the budget

For example, a  property agent with no landing page or website that can gather good data wanting to generate leads vs  one with good online assets is different. In Singapore, the cost per lead can go from as low as $4 to as high as $100 per lead depending on lead quality and utilisation. 

For example, a low value goods e-commerce store without any online presence before or an unknown brand will need to allocate budget towards branding and and awareness first. Then followed by consideration and conversion campaigns. Jumping straight down to lower end of the funnel will result in high cost and unmet targets due to a goal setting that is unrealistic. 

For a car dealership for example, people don’t really buy cars online but you can allocate budget to lead generation for different functions like trade-in, buying over used cars or promotions.

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