How to Grow a Retailer | Lesson #1: How Much Should a Local Retailer Spend on Meta Ads?
Here’s Exactly How Much to Spend on Facebook and Instagram Without Guessing
If you’re a local retailer running Facebook and Instagram ads, you’ve probably asked this question:
“How much should I actually be spending?”
Most retailers either:
Spend too little — and never see enough traction to move the needle, or
Throw money at ads with no structure, no plan, and no way to measure what’s working
That’s why at Omni Digital Group, we use a simple, proven rule for every retailer we work with — one that eliminates the guesswork and focuses on consistent, measurable results.
The Magic Number: Spend 4–6% of Your Monthly Revenue
Here’s the starting point:
4–6% of your monthly revenue should go toward Meta ads.
That means:
If your store does $20,000/month in revenue → your Meta ad budget should be around $800–$1,200/month
If you’re doing $50,000/month → that budget becomes $2,000–$3,000/month
This range gives you enough budget to test, learn, and build momentum — without overspending or relying on luck.
The goal isn’t spending more — it’s spending smarter and doing it consistently.
How to Split Your Meta Ad Budget (the 20/40/40 Rule)
Now that you know how much to spend, let’s talk about how to spend it.
We break your total ad budget into three simple parts:
20% on Awareness (New Audiences)
This is where you introduce your store to new people in your local area.
Think: videos, carousel ads, or reels that showcase your products, story, or what makes your store unique.
These ads don’t sell — they introduce.
They’re designed to build attention and brand recognition.
📍 Example: If your total budget is $1,000, that’s $200 on awareness ads.
40% on Re-Targeting (Staying Top of Mind)
This is where most retailers don’t spend enough.
Re-targeting means showing ads to people who’ve already interacted with your page, watched your videos, or visited your website.
These people already know your brand — now they need a reason to come back and shop.
You can show them:
New arrivals
Limited-time offers
Social proof (like reviews or testimonials)
📍 Example: $400 of your $1,000 total budget goes here.
Pro tip: This group has the highest chance of converting. It’s your low-hanging fruit.
40% on Conversion (Driving In-Store Sales)
Finally, the last 40% should focus on driving actual foot traffic and repeat purchases.
These ads are all about action — giving people a reason to visit your store today.
Your conversion campaigns can target:
New customers ready to buy
Existing customers who haven’t shopped recently
Past customers ready to come back in
📍 Example: $400 of your $1,000 goes toward conversion ads.
The Secret Isn’t Spending More — It’s Spending Smarter
When retailers ask how much to spend on Meta ads, they usually expect a big number.
But here’s the truth: the best retailers win through structure and consistency, not massive budgets.
Running Meta ads without a plan is like driving with your eyes closed.
Running ads with this structure is like driving with a GPS.
Spend 4–6% of your monthly revenue.
Split it 20/40/40.
Keep your message consistent.
And track your results weekly.
Do that — and you’ll never “guess” your ad budget again.
Ready to Build a Smarter Ad Plan?
If you’re tired of guessing what to spend or how to structure your campaigns, we’ll build you a simple, data-backed plan that fits your store.
Message us the word “GROWTH” and we’ll show you exactly what your Meta ad strategy should look like — including budget breakdowns, targeting ideas, and campaign setup steps.
No guessing. Just results.