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Facebook advertising for businesses

Facebook and Instagram run from the same system. Here’s what advertising there costs, what the Boost button does and doesn’t do, and how to test ads on a small budget without spreading it so thin that Meta never learns.

By Jona Helgen, Arcads · Updated September 28, 20264 min read

Short answer: Facebook and Instagram ads are set up in Meta Ads Manager. You set the budget yourself, but Meta needs around 50 optimization events a week per ad set to exit the learning phase, so your budget should be based on what a lead or a sale costs you. Boost works for spreading a post, but gives you little control over audience, placement and testing.
Facebook ad we made
Facebook ad we made
Facebook ad we made
~50 eventsa week per ad set
Boostlittle control

Real ads we have made

In this article
  1. Facebook and Instagram are the same system
  2. What does Facebook advertising cost?
  3. The Boost button: what it does, and what it lacks
  4. A realistic test setup for a small budget
  5. Tracking first
  6. The content
  7. Facebook advertising for local service businesses
  8. Do it yourself or get help?

Facebook and Instagram are the same system

Both run from Meta Ads Manager, often in the same campaign. You create the ads once, and Meta shows them in the Facebook feed, the Instagram feed, Stories and Reels, wherever they perform best. When we say “Facebook advertising” here, we mean both. The industry calls it Meta advertising.

What does Facebook advertising cost?

Meta has a minimum budget per ad set, but it’s low, a few dozen kroner a day depending on what you optimize for. The real minimum is the learning phase. Meta needs around 50 optimization events a week per ad set to learn who actually converts. Until that happens, results are unstable, and Ads Manager labels the ad set “Learning limited.”

Work backwards. If a lead costs NOK 200, one ad set needs around NOK 10,000 a week to reach 50 leads. That’s more than most small businesses spend. It doesn’t mean you can’t advertise on less, but you have to set it up differently (see the test setup below).

Before you set the budget, work out what a sale or a lead can afford to cost. The math is in What is a good ROAS?

The Boost button: what it does, and what it lacks

“Boost post” is the most common way into advertising on Facebook. Boost has gained more objectives in recent years, including website visits, messages and calls, so it’s not just about likes anymore. What Boost lacks is control:

  • You get fewer options for audiences and exclusions than in Ads Manager.
  • You can’t control placements (feed, Stories, Reels) the same way.
  • Each boosted post is one ad, so you can’t test several variants against each other in the same ad set.
  • You don’t get the same choices for what Meta should optimize for, such as a lead or a purchase recorded by the pixel.

Boost is fine when you want more followers and people nearby to see a post, for example an event. If the ads are supposed to bring in customers, set up a campaign in Ads Manager with an objective you can measure.

A realistic test setup for a small budget

You’ve probably heard you need to test lots of ads. That’s true, but the number has to match the budget. At NOK 100 a day, ten new ads a week each get almost nothing, and then you haven’t tested anything. Here’s how we would set it up on a small budget:

  1. One ad set. The whole budget in one place, so the events aren’t split across several sets. That gives Meta the best chance to learn.
  2. A broad audience within your area. Narrow by location and age if you need to, and let Meta find the people. Small, detailed audiences make the ads more expensive.
  3. 3–5 ads at a time. Ideally different angles: a video of someone talking to the camera, an image of the result, an image with a price or offer.
  4. Judge by cost per lead, not after a few days. Let an ad spend 2–3 times what a lead should cost before you judge it. Meta distributes the budget unevenly, and an ad that has barely had any impressions hasn’t been tested.
  5. Replace the weakest one every two or three weeks. Keep the winners and add one or two new ones.

When the budget is big enough for several hundred conversions a month, you can test much more. For clients with the budget for it, we make 10+ new ads a week. At NOK 100 a day, it makes no sense.

Want to see what we would do for you? Send us your website and get a free proposal for ads and a landing page.

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Tracking first

Without a pixel and the Conversions API recording real leads and purchases, Meta optimizes for what it can see, like clicks and impressions. Set up tracking before you spend money, and choose an optimization goal that’s actually valuable to you. If you’re nowhere near 50 purchases a week, it may be right to optimize for an earlier step, like “add to cart” or “started form,” and then track what that brings in sales.

The content

Targeting matters less than it used to. Meta finds the people on its own if the ad is good enough, so it’s the content that decides. What works best for us is content that looks like what people otherwise see in their feed: a person talking straight to the camera, real photos of the work, on-screen text for people watching without sound. More about UGC. We’ve made more than 5,000 ads for our clients, including Badstugutta, Utvendig Renhold and a dental clinic in England.

Facebook advertising for local service businesses

Tradespeople, salons, clinics, gyms and repair shops get the most out of Facebook when three things are in place: a tight area (10–30 km around where you deliver, not the whole county), real content (photos and video of your work and your people, filmed on a phone) and a measurable goal (a form, a booking or a call, not likes). For services people actively search for, like move-out cleaning, plumbers or dentists, Google should be the first channel, with Facebook used for retargeting and for staying top of mind locally. For visual and planned services, like painting, a new bathroom or a sauna, Facebook can be the main channel. Clinics and aesthetics have their own rules: no before and after images. Industry by industry: marketing for service businesses.

Do it yourself or get help?

You can do everything above yourself, and on a small budget maybe you should for a while. If you’d rather spend your time on the business: this is what we do. We take a share of the value we create, not a fixed monthly fee, and we work with established businesses with a monthly ad budget of at least NOK 30,000. How it’s calculated.

Some of the companies we work with
Utvendigrenhold Veldigrent.no Rask Flytting Mokki Badstugutta Frifor.app

Hear from our clients.

Our clients5 participants
TT
Thommy TellefsenCEO, Leid.no
These guys deliver above and beyond! I'd worked with 6-7 other agencies before we were recommended Arcads. There's a clear before and after working with you.
4.73x ROAS across channels
MG
Mattis Ohana GoksøyrCMO, Mokki
Wow, even the statics are working this well! Great job, guys, fantastic
+127% profit year over year
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Jonathan RotheCEO, Utvendig Renhold
Great job, boys! Very good.
549 leads in 90 days
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ElliotCo-founder, Badstugutta
Really nice, we're getting more leads than ever, we're getting more clicks than ever!! Amazing.
Leads from Google and Meta
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Nathaniel AyehVeldigrent and Raskflytting
We've worked with Arcads on several concepts over time, and we still do. Creative, professional and fast. A partner we trust.
NOK 202 per lead, move-out cleaning Oslo
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Tracking

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Behind Arcads.

Arcads is a Norwegian performance marketing agency in Skien that runs Google Ads and Meta Ads and makes the ads itself, for clients all over Norway. We mostly work with online stores and service businesses that live on leads, often with multiple locations.

Victor Skretteberg, managing director of Arcads

Victor Skretteberg

Managing director and Google Performance

Victor is the one you meet on the first call. He builds your Google account and digs into the numbers. You get a report every Monday.

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Jona Helgen, creative lead at Arcads

Jona Helgen

Creative and Social Media Performance

Jona makes the ads you see on this page. Videos, statics and concepts. 10+ new ones a week don't make themselves.

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We got tired of agencies that invoice whether it works or not, so we built our own. No middlemen, no salespeople. You get us.

Why people leave their agency for two guys in Skien.

One partner instead of a slow agency, a freelancer you have to chase, or yet another evening in front of the ad account yourself.

ArcadsTypical agencyFreelancerDo it yourself
Payment100% performance-basedFixed feeHourly rateYour own time
New ads10+ a weekA few a monthOne at a timeWhen you find the time
Landing pagesIncluded, made by usExtra invoiceRarelyYour website
ReportingEvery Monday, numbers you understandQuarterly reportNoneYou make it yourself
Who you talk toVictor and JonaAccount managerOne personNo one
Lock-inNoneOften 6-12 monthsNoneNone
OwnershipThe accounts are yoursVariesVariesYours

Questions and answers.

What does Facebook advertising cost?+
You set the budget yourself, and Meta’s minimum budget per ad set is low. What decides how much you should spend is the learning phase: Meta needs around 50 optimization events a week per ad set. If a lead costs NOK 200, that’s around NOK 10,000 a week. With a smaller budget, put everything in one ad set and expect Meta to learn more slowly.
Is there a difference between Facebook advertising and Instagram advertising?+
No, not in practice. Both run from Meta Ads Manager, often in the same campaign. You create the ads once, and Meta shows them on Facebook, Instagram, Stories and Reels wherever they perform best.
Should I use the Boost button on Facebook?+
Boost is fine for spreading a post to followers and people nearby. It has more objectives than before, like website visits, messages and calls, but gives you less control over audience and placement, and you can’t test several ads against each other. If the ads are supposed to bring in customers, use Ads Manager.
How many ads should I test at the same time?+
It depends on the budget. On a small budget: 3–5 ads in one ad set, and let each ad spend 2–3 times what a lead should cost before you judge it. Replace the weakest one every two or three weeks. Lots of new ads a week only makes sense when the budget produces several hundred conversions a month.
What is the learning phase on Facebook?+
The period after an ad set is launched or significantly changed, while Meta is still figuring out who converts. Meta needs around 50 optimization events a week per ad set to exit it. Big changes to budget, audience or ads send the ad set back into learning.

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