Running social media ads in 2025 isn’t just a smart move — it’s a necessity. But let’s be honest, trying to figure out how much they actually cost can feel like reading a restaurant menu with no prices.
Some business owners throw in a few hundred dollars and hope for the best. Others overspend without knowing if it’s working. Most are just trying to answer one simple question: “How much do I need to spend to get real results?”
This article breaks that down. We’ll walk through what impacts ad costs, show you average pricing across platforms, and explain what kind of budget gives you the best shot at success — whether you're going DIY or thinking of hiring an agency like Born Social.
Spoiler: The right budget isn't about spending more — it's about spending smarter.
Key takeaways:
1. Social media ad costs vary by platform, audience, and objective — not all clicks are created equal.
2. Average CPM (cost per 1,000 views) ranges from $6 to $30+ USD in the US and $10 to $40 AUD in Australia, depending on the platform.
3. “A good budget” isn’t a fixed number — it depends on your goals and how efficient your creative and targeting are.
4. Agencies (like Born Social) can help you avoid common money-wasters with smart testing, better tracking, and experience-driven strategy.
5. The goal isn't just spend money — it’s make it work.
What Impacts the Cost of Social Media Ads?
Not all ads are priced equally. What you pay depends on a mix of factors — some you control, others you don’t. Think of it like booking a flight: the destination matters, but so do the time of year, airline, and how early you book.
Here’s what affects your ad costs:
1. The Platform
Facebook, Instagram, TikTok, LinkedIn — each platform has its own pricing quirks.
• Meta (Facebook & Insta) offers broad reach, solid targeting, and mid-range costs.
• TikTok can be cost-effective but demands scroll-stopping creative.
• LinkedIn is pricey, but often worth it for B2B leads.
• YouTube sits somewhere in the middle, ideal for storytelling and brand lift.
2. Campaign Objective
Running ads for traffic? That’s one price.
Going for conversions or leads? You’ll usually pay more — but you’re also asking for more from the user. The more complex the ask, the higher the cost.
3. Audience Targeting
• Broad targeting is cheaper, but less precise.
• Lookalike audiences offer better match quality and balance.
• Retargeting (like chasing people who’ve visited your site) is usually high-value — and often higher priced.
4. Ad Format
Video ads usually outperform static images, but they may cost more to run and produce.
Carousels, stories, reels — each format comes with different engagement rates and cost implications.
5. Competition & Bidding
You’re not the only one trying to reach your audience. During peak times (Black Friday, end-of-financial-year), ad space gets more competitive — and prices spike. Platforms run on auctions, and you are bidding against others for attention.
Cost Benchmarks by Platform and Region
Let’s get to the numbers — because guessing doesn’t cut it when you’re building a marketing budget.
Below are average CPMs (cost per 1,000 views) across major platforms. These aren’t locked-in rates, but they’re solid benchmarks to help you estimate what to expect.
And yes, prices vary between countries. A campaign in Sydney won’t cost the same as one in San Diego.
Cost of Social Media Adverts in Australia:
| Platform |
Avg. CPM (AUD) |
Notes |
| Facebook/Instagram |
$14–22 |
Popular for retail, hospitality, services |
| TikTok |
$12–18 |
Fast-growing in Australia, especially Gen Z |
| LinkedIn |
$25–40 |
Strong for consultants, SaaS, and finance |
| YouTube |
$12–20 |
Works well for visual brand stories |
| Pinterest |
$10–15 |
Ideal for design, weddings, and lifestyle |
Cost of Social Media Adverts in USA:
| Platform |
Avg. CPM (USD) |
Notes |
| Facebook/Instagram |
$10–15 |
Great for B2C, lead gen, and broad reach |
| TikTok |
$8–12 |
Strong engagement with younger demos |
| LinkedIn |
$20–30 |
Expensive, but gold for B2B |
| YouTube |
$10–15 |
Good for storytelling & awareness |
| Pinterest/Twitter |
$6–10 |
Niche reach, often overlooked |
Pro Tip: These numbers shift with competition, seasonality, and how dialed-in your targeting and creative are. Great ads can lower your CPM — average ones won’t.
What Is a Good Budget for Social Media Advertising?
Let’s kill the myth that there’s a magic number for ad budgets.
There isn’t.
But there is a smart way to approach it.
Most small to mid-sized businesses see real traction when they start with $1,500–$2,500/month on Meta (Facebook and Instagram). That’s enough to run meaningful tests, gather data, and start learning what works.
Going broader — say, adding LinkedIn or YouTube — usually means stepping up to $3,000–$5,000/month, especially if you’re in a competitive niche like finance, tech, or e-commerce.
Still feeling nervous about spend? Here’s how to make that budget count:
Match Budget to Your Goal
• Brand awareness: Lower budgets can still deliver big reach.
• Leads or conversions: These take more time and targeting — so budget more for testing and retargeting.
• Product sales: Add room for creative production (especially video) and funnel-building.
Think in 4–6 Week Cycles
Don’t just “set and forget.” Run campaigns in short sprints. Measure what’s working. Cut what isn’t. Improve creative and targeting over time.
Expect Seasonal Shifts
Your $1,500 might go further in February than it does during the end-of-year sales rush. Ad prices spike when competition heats up. Keep that in mind when planning.
Working with an Agency?
A good agency doesn’t just spend your budget — they stretch it. Testing, creative tweaks, retargeting setup, conversion tracking — all of that adds efficiency. It’s how you turn a $2,000 budget into something that actually drives ROI.
Tools to Estimate or Track Ad Spend
Budgeting for social ads without the right tools is like driving with your eyes closed. You might get somewhere, but it won’t be pretty.
Fortunately, the platforms themselves offer some decent tools — and if you’re working with an agency, you should expect even more clarity.
Meta Ads Manager Budget Estimator
When setting up a campaign on Facebook or Instagram, Meta gives you projected reach and impressions based on your daily or lifetime budget. It’s not perfect, but it helps you reality-check your expectations.
Use it to:
• See how far your budget might stretch
• Compare different campaign goals (reach vs conversions)
• Spot unrealistic assumptions early
Google Ads Planner (Helpful for YouTube or Display)
If you’re venturing into YouTube or multi-platform ads, Google’s tool offers a broader view. It’s great for forecasting reach and CPCs across search and video.
Reporting & ROI Tracking (Agency Advantage)
Here’s where working with an agency like Born Social can be a game-changer.
A good team won’t just spend your money — they’ll show you exactly what you’re getting back.
Expect:
• Real-time dashboard access
• ROAS (return on ad spend) calculations
• Monthly strategy reviews
• Insights that help you spend smarter next month
Bonus points if they help you build out a custom ROI calculator or sales funnel view — so you’re not just tracking views, but actual impact.
Conclusion
Social media ads aren’t getting cheaper — but the good news is, results aren’t just about how much you spend. They’re about how well you spend it.
Businesses that take the time to plan, test, and refine their campaigns will always outperform those who “boost and hope.”
If you’re still unsure where to begin, you’re not alone. Most businesses waste a chunk of their budget before realising they need a better system — or a partner who’s been there before.
At Born Social, we help businesses like yours take the guesswork out of social media advertising. Whether you’re starting with $1,500 or scaling past $10k, we’ll help you spend smarter — not just bigger.
Book a free strategy call with our team or learn more about our Digital Advertising Services!
Frequently Asked Questions
What is a good budget for social media advertising in 2025?
Most small businesses start seeing results with a budget between $1,500–$2,500/month on Meta platforms (Facebook and Instagram).
If you’re running multi-platform campaigns or targeting competitive industries, expect to invest $3,000–$5,000/month. The real key? Start with clear goals and track performance.
How much are Facebook ads per 1,000 views?
In the U.S., average CPM (cost per 1,000 impressions) is around $10–15 USD.
In Australia, it’s typically $14–22 AUD.
Your actual cost depends on audience targeting, competition, and ad quality.
How much are Instagram ads per 1,000 views?
Instagram CPMs are usually in the same ballpark as Facebook — $10–20 USD, or $14–22 AUD.
Instagram often performs better for visual, brand-driven campaigns, especially in industries like fashion, beauty, or travel.
Why are LinkedIn ads more expensive?
LinkedIn’s audience is smaller, more niche, and often higher value — especially in B2B.
You’re paying a premium (up to $40 AUD or $30 USD CPM) to get in front of decision-makers. For many businesses, the conversion rate justifies the cost.
Do I need an agency to run social media ads?
No — but many businesses find it’s more efficient.
An experienced agency can test faster, optimise better, and provide reporting that shows what’s actually working. Plus, it frees up your time to focus on running your business.
Can I get results with a small ad budget?
Yes — but you’ll need to be sharp.With tight targeting, strong creative, and a clear offer, even $1,000/month can generate meaningful results.Just be realistic: lower spend means you’re buying fewer data points, so give it time to learn and optimise.