Setting an advertising budget for Facebook and Instagram can be challenging, as it depends on various factors. Business owners should have an overall budget for Facebook and Instagram ads vs. other parts of their marketing, depending on how well they can track their results to ensure their campaign is profitable. It’s best to start slow to get a baseline of results, spend 60-70% of the budget in the lead generation phase, 10% on the top of the funnel or with brand-building ads, and 20-30% in retargeting sales ads. To optimize the budget settings on Facebook, business owners need to calculate where their costs should land to be profitable. For example, they should start with the product cost, how they sell it, make some assumptions based on general performance ranges, and then ramp up their ad budgets slowly to test out these assumptions. When starting the campaign, the budget needs to be set at the ad set level rather than using the Advantage campaign budget option, as this allows for more individual control over the budgets for each target audience. At the ad set level, business owners need to choose between Daily Budget or Lifetime Budget, Placements, and Optimization & delivery section. Once they see which audiences and ads are working well, they can scale their ads up by adding to the daily budget at the ad set level, or with the Advantage campaign budget option, or use similar size audiences in a campaign and increase the budget at the top level. Overall, there is no one-size-fits-all approach to budgeting Facebook and Instagram campaigns. It takes some math and experience to figure out what works best.