Meta Ads for Retailers: A Complete Guide to Driving Foot Traffic and Revenue in 2025
Are Your Ads Bringing Clicks But Not Customers?
Are you running Meta ads but struggling to connect them to actual in-store sales? Do you wonder how much you should spend each month to see real results?
At Omni, we’ve spent more than $4 million on Meta ads for retailers, running tens of thousands of campaigns. 90% of those were designed to drive in-store sales — not just clicks.
In this article, you’ll learn:
What Meta ads really cost and how to budget
The best targeting setup for local retailers
How to use Custom Audiences to lower costs
How to track if ads actually drive sales
Our recommended ad spend framework by revenue
Let’s dive in.
What Does It Cost to Run Meta Ads?
How much should retailers spend on Meta ads?
Most brick-and-mortar retailers should budget $3,000–$10,000 per month in ad spend.
If your store does less than $1M in annual revenue, you can still get meaningful results spending $500–$1,000/month — but once you grow past that, you’ll want to scale your budget.
Average costs (from our client data):
$7 per 1,000 impressions (your ad being seen)
$66 per 1,000 unique people reached
Compared to TV, print, or radio, Meta ads are incredibly cost-effective.
Key takeaway: A thousand ad views on Meta costs less than lunch — but only if you target correctly.
The 3 Things That Make Meta Ads Work
To make Meta ads successful, focus on:
Targeting – Who sees your ads
Creative – The videos and images you show
Objective – The campaign goal Meta optimizes for
Example Retailer Framework
If you’re a local store, here’s a simple but powerful setup:
Objective: Conversion
Targeting: 5-mile radius, age + gender matched to your product (e.g., women 30–45)
Creative: 3 videos — outside of your store, inside of your store, and your top products
Even with just $500–$1,000/month, this setup works. With $3k–$10k/month, it can transform your business.
Lower Your Customer Acquisition Cost (CAC)
What is a Custom Audience?
A Custom Audience lets you advertise directly to people who already know you — like past customers or website visitors.
We analyzed data from 1 million retail customers and found that 59% only shop once and never return. That’s a huge missed opportunity.
By uploading your POS data to Meta, you can target those customers again on Facebook and Instagram.
Real Example:
One client dropped their acquisition cost from $10.68 to $7.50 — about 30% lower — just by running Custom Audience campaigns to past buyers and website visitors.
Key takeaway: Retargeting your existing and lapsed customers is the fastest way to increase ROI.
How Much to Spend Based on Revenue
Here’s a simple rule of thumb for retail Meta ad budgets:
$500k–$1M revenue → $1,000–$2,000/month
$1M–$5M revenue → $2,000–$8,000/month
$5M+ revenue → $10,000–$30,000/month
Watch out for agencies: Always separate ad spend from agency fees. If an agency charges $2,000, you should still spend at least $4,000 on ads. If their fee eats up 80% of your budget, that’s a red flag.
Tips to Stretch Your Budget Further
Test creatives: Launch 10–20 ads, keep the winners, kill the rest.
Think local: Start with a 5-mile radius around your store.
Go narrower, not broader: Smaller, specific audiences outperform large generic ones.
📍 Example: A pet food retailer went from targeting 30M people to 5M, and their ROAS jumped significantly.
Key takeaway: In retail, local > broad. A smaller, focused audience gives higher returns.
How to Track If Meta Ads Are Actually Working
The #1 retailer question: “How do I know if these ads drove sales?”
That’s why we created a software called Omni Lightning. It integrates with your POS system to track exactly which ads led to in-store purchases.
Instead of guessing, you’ll know:
Who saw an ad
Who came in-store
What they purchased
E-commerce retailers can use Triple Whale for a similar effect.
Key takeaway: If you can’t track ROI, you’re flying blind.
How Long Until You See Results?
Give it 6 months. Meta ads get smarter over time as you refine targeting, test creative, and gather data. Growth takes time — but it compounds.
Setting Revenue Goals with Meta Ads
Work backwards from your revenue target:
Want to add $200k in sales this year?
At a 10X ROAS, you’ll need to spend about $20k in Meta ads.
It’s simple math: Revenue Goal ÷ ROAS = Ad Spend.
FAQs About Meta Ads for Retailers
Q: How much should retailers spend on Meta ads?
A: Most brick-and-mortar retailers should budget $3k–$10k/month, depending on revenue.
Q: What’s the average cost per 1,000 impressions?
A: Around $7 CPM, and $66 to reach 1,000 unique people.
Q: Is $1,000 enough to run Meta ads?
A: Yes, for smaller retailers under $1M revenue. Over that, you’ll want $3k–$10k.
Q: Which works better — Facebook or Instagram?
A: Both. They run under the same platform. Your results depend more on targeting + creative than the specific channel.
Q: How do I know if my ads are working?
A: Use ROI tracking tools like Omni Lightning (in-store) or Triple Whale (e-commerce).
Conclusion: Use Meta Ads to Grow Your Store
Meta ads are one of the most cost-effective ways to grow a retail business. They allow you to:
Reach more new customers
Bring back past and dormant buyers
Stretch your ad dollars further than traditional media
Track every dollar back to your register
Ready to see which ads actually drive people into your store?
👉 Book a free demo with Omni Digital Group and let us help you track and scale your retail growth.