When you use automatic payments for Facebook ads, you can set up an ad spending limit for your Facebook Ad Account. This Facebook ad account spending limit can help you control the cost of Facebook advertising and can make sure you don’t overspend on Facebook.
In this Facebook ads tutorial, we are going to show how this Facebook Ad Account Spending limit works and how you can set it up.
Without further ado, let’s get into it.
What is the Facebook Ad Spending limit and how does it work?
Facebook Ad Account spending limit is an adjustable lifetime limit on the amount your Facebook ad account can spend across all the Facebook campaigns you’re running from the time the limit is set.
By setting a spending limit in your Facebook ad account, you can easily make sure you don’t spend more in a specific month than you have allocated in your Facebook ads budget in that specific month. You can only set an ad spending limit if you are paying for Facebook ads with automatic payments.
So if you use manual payments for Facebook ads, first you need to switch to automatic payments to be able to set a Facebook ad account spending limit.
What happens when you reach the spending limit?
When you reach the spending limit you have set up, all your Facebook ads campaigns are stopped and your ad spending as well. Your ads in the campaigns still remain active, but Facebook will stop delivering them and you will also get a notification about this.
In this case, you can change the spending limit (increase, remove or reset it) if you want to run Facebook ads again, we have a separate tutorial, where we show all of these methods you can use to start running ads again.
But now, let’s see how you can set a spending limit in your Facebook Ad Account.
How to set up Facebook Ad Spending limit?
Here is how to set up a Facebook Ad Account Spending limit:
- Open the Facebook Ads Manager.
- Click on ‘Billing’ from the hamburger menu.
- Click on ‘Payment settings’.
- In the ‘Account Spending limit’ section, click on the three dots.
- Select ‘Set limit’.
- Add the amount.
- Click on ‘Save’.
Once you have set the ad spending limit, once your ad account reaches this spending limit, Facebook will automatically stop all your Facebook ad campaigns until you don’t reset or remove the ad spending limit.
Ad account spending limit vs campaign budget spending limit
It is important to make the distinction between ad account spending limit vs. campaign budget spending limit.
If you choose to run a Facebook campaign with a lifetime budget you can set a campaign budget for the campaign so Facebook will run the campaign until you reach this lifetime budget for the campaign.
So if you want to be more restrictive on the campaign level, you can set spending limits for your Facebook ad campaigns as well.
Another benefit of a Facebook lifetime campaign budget is that you can customize the Facebook ad schedule. So if you don’t want to deliver the ads during the nights or on the weekend, you can do that easily with customizing the ad schedule.
Daily spending limit on Facebook
There is also a daily spending limit related to Facebook ad accounts. This dynamic daily spending limit is not set by the Facebook advertiser, it is set by Facebook based on certain criteria.
When you reach this daily spending limit that is usually at 5000 USD per day, then Facebook will stop the delivery of your ads in your ad accounts. In this case, they will review your account, and hopefully if you have a legitimate business, they will lift this daily spending limit.
The daily spending limit can be lower if you have a brand new Facebook ad account or if you get consistently negative customer feedback. You can learn more about Facebook’s daily spending limit here: https://www.facebook.com/business/help/563129151097553
For this reason, we recommend creating a backup Facebook ad account, so even if you reach the daily spending limit on one of your Facebook ad account, you can keep advertising on your second Facebook ad account.