When you're mapping out a social media campaign, knowing the benchmarks and setting realistic expectations is just as crucial as your ad creative. It’s easy to get caught up in lofty goals, but grounding your strategy in real data helps guide your investment and decisions.
Here’s a breakdown of what a typical social media campaign could look like with a $1000 monthly spend, including industry benchmarks to give you a clearer picture of what’s normal - & what’s great.
The Spend Theory Breakdown
First, let’s look at how the numbers break down with a $1000 budget:
Daily Spend Allocation (30 Days): For a $1000 total investment spread over 30 days, your daily spend is $33.33. This is a reasonable budget for more substantial campaigns targeting broader audiences.
Investment Required: With an initial $1000 spend, you're setting the stage for driving meaningful results.
The Metrics
CPM (Cost Per 1,000 Impressions): The average CPM across Facebook Ads is around $12.50, but it can range from $6.00 to $16.00 depending on your industry and targeting. (Source: Hunchads)
With a $1000 spend, you're looking at 80,000 impressions at this CPM.
CTR (Click-Through Rate): The average CTR for Facebook Ads is around 0.9% to 1.6%, but top-performing campaigns can achieve a 2.5% CTR or higher. (Source: Wordstream)
At a 2.5% CTR, your 80,000 impressions would lead to 2,000 clicks.
Clicks to Landing Page View (LPV) Rate: With a typical click-to-landing-page view conversion rate of 40%, you’ll get 800 LPVs from your 2,000 clicks. (Source: AgencyAnalytics)
Conversions & Sales
Conversion Rate (CVR): A 2.5% conversion rate is typical, meaning you can expect 20 purchases from those 800 landing page views. (Source: Madgicx)
Average Order Value (AOV): Assuming your AOV is $100, you’ll generate $2,000 in revenue from the 20 purchases.
ROAS (Return on Ad Spend)
Here’s the critical part:
Revenue: With an AOV of $100 and 20 purchases, your revenue is $2,000.
ROAS: With an investment of $1000, your ROAS is 2.0 - you earn $2 for every $1 spent. While ROAS of 2 is a solid target, businesses often aim for a ROAS of 3 or higher for maximum profitability (Source: Local IQ).
Conclusion
With a $1000 monthly spend, here's how you can expect your campaign to perform:
Your CPM of $12.50 is within the industry average, though it may fluctuate based on the audience you target.
A 2.5% CTR is an excellent benchmark to aim for, considering top-performing campaigns often see this level of engagement.
Your conversion rate of 2.5% and ROAS of 2.0 are inline with solid industry standards for a well-optimized campaign.
With these benchmarks in mind, you can better plan your social media strategy. Remember, continuous optimization and testing will push you toward even higher returns. Data is the foundation for refining your campaigns, scaling your budget, and maximizing profitability.
