When it comes to digital advertising, every dollar counts. But how far can $100 actually take you on major platforms like Facebook, Google, and Instagram?
Understanding the value of your advertising budget is crucial for making informed decisions about where to allocate your resources. Today, we’ll break down what you can expect from a $100 investment across these platforms, focusing on e-commerce and booking campaigns, and give you a clear picture of the potential return on investment (ROI).
Now, before we begin, it has to be said that we’re going to use an imaginary campaign for this thought experiment. Every campaign is different and will get different results. We’re using benchmark results for each platform to give you an idea of what you can expect to achieve on average from each platform.
Facebook remains one of the most effective platforms for e-commerce advertising, thanks to its advanced targeting options and broad user base.
Cost Per Click (CPC): On average, the CPC for e-commerce campaigns on Facebook is around $0.50 - (Revealbot - Automate Your Ad Strategies) (Meta Ads AI).
Cost Per Acquisition (CPA): For a typical e-commerce campaign, the CPA tends to hover around $10 - (Dojolab).
What Does $100 Get You?
With a $100 budget on Facebook, you could expect approximately 200 clicks (based on the $0.50 CPC). If your campaign is well-optimised, these clicks could result in around 10 conversions (based on a $10 CPA).
Narrative: Imagine you’re running a campaign for an online store selling handmade jewellery. Your $100 ad spend could expose your products to around 10,000 people, depending on your targeting settings. Of those 10,000, approximately 200 might click through to your website, and with an effective landing page and compelling offer, around 10 of those might make a purchase. If each customer spends $50, that’s $500 in revenue from a $100 ad spend—an impressive 5x return on investment.
Google Ads is renowned for capturing high-intent users, making it a powerful tool for both e-commerce and booking campaigns.
Cost Per Click (CPC): For e-commerce campaigns, the average CPC on Google is around $1 (AdEspresso).
Cost Per Acquisition (CPA): The CPA on Google can vary, but a typical average is about $20 for e-commerce (Dojolab).
What Does $100 Get You?
A $100 budget on Google Ads would likely result in around 100 clicks (based on the $1 CPC). If your campaign is well-optimised, this could lead to about 5 conversions (based on a $20 CPA).
Narrative: Let’s say you’re promoting a booking service for holiday rentals. Your $100 Google Ads budget could generate 100 highly targeted clicks from users actively searching for holiday accommodation. With an average CPA of $20, you might secure 5 bookings. If each booking is worth $200, that’s $1,000 in revenue—resulting in a 10x return on your initial investment.
Instagram, known for its highly visual and engaging platform, is particularly effective for brands with strong visual content.
Cost Per Click (CPC): The average CPC on Instagram for e-commerce campaigns is approximately $1 (Meta Ads AI).
Cost Per Acquisition (CPA): Instagram’s CPA for e-commerce typically averages around $18 (Dojolab).
What Does $100 Get You?
With $100, you could expect around 100 clicks on Instagram (based on the $1 CPC). If your campaign is well-targeted and your content resonates with your audience, you might achieve around 5-6 conversions (based on the $18 CPA).
Narrative: Consider a campaign for a luxury skincare brand. Your $100 spend on Instagram could reach around 5,000 users, with approximately 100 clicking through to your website. If 5 of those users decide to purchase a skincare product, and each sale averages $60, you’re looking at $300 in revenue. While the ROI may not be as high as on Google, Instagram offers unique opportunities for brand building and customer engagement that can pay off in the long term.
When it comes to digital advertising, the effectiveness of your budget depends on your goals, targeting, and platform choice. A $100 ad spend on Facebook, Google, or Instagram can yield significant returns if used strategically. By understanding the average costs and outcomes, you can make more informed decisions about where to allocate your advertising dollars. Whether you’re aiming to drive e-commerce sales or secure bookings, each platform offers unique strengths that can help you achieve your business goals.
Invest wisely, and watch your $100 stretch further than you might expect.
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