Social Media Advertising Cost & ROI Calculator for Singapore

TikTok has rapidly become a serious advertising platform in Singapore, but it’s not right for every business. Here’s how the two compare:

• Cost: TikTok ads are currently cheaper — CPMs average $4–$8 SGD versus $6–$12 for Facebook. This gap is narrowing as more advertisers join TikTok.
• Audience: TikTok skews younger (18–34), while Facebook reaches a broader age range including 35–55+. For Singapore businesses targeting working professionals or older demographics, Facebook is usually more effective.
• Ad format: TikTok requires short-form video content that feels native to the platform. Polished ads often underperform — authentic, relatable content wins. Facebook supports more variety: images, carousels, video, and lead forms.
• Conversions: Facebook’s pixel and conversion tracking are more mature. TikTok is catching up but still has limitations for complex attribution.

Our recommendation: If your product is visual and your audience is under 35, test TikTok. For broader audiences and lead generation, start with Facebook/Instagram. Ideally, test both with a small budget and let the data decide. For a broader strategy guide, read our social media marketing guide for Singapore.

Measuring social media ROI goes beyond vanity metrics like likes and shares. Here are the benchmarks Singapore businesses should track:

• Return on Ad Spend (ROAS): E-commerce businesses should aim for 3–5x ROAS (SGD $3–$5 revenue for every $1 spent). Service businesses with higher margins may be profitable at 2–3x.
• Cost per Lead (CPL): Ranges from $5–$15 for B2C lead gen to $30–$80 for B2B on LinkedIn.
• Cost per Acquisition (CPA): Varies widely — $20–$50 for low-ticket e-commerce, $100–$500+ for high-value services.
• Click-through Rate (CTR): 0.5–1.5% for Facebook/Instagram, 0.3–0.8% for LinkedIn, 1–3% for TikTok.

Attribution complexity: Social media often influences purchases without getting direct credit. A customer might see your Instagram ad, Google your brand name later, and convert via your website — attributing that sale solely to Google would undervalue your social media investment. Consider using multi-touch attribution or incrementality testing for a more accurate picture.

Rather than picking an arbitrary number, work backwards from your business goals:

• Step 1: Define your target CPA. How much can you afford to pay for one customer? If your average customer is worth $500 and your margin is 40%, you can afford up to $200 per acquisition and still be profitable.
• Step 2: Estimate your conversion rate. If 2% of clicks convert, you need 50 clicks per customer. At $1 CPC, that’s $50 per acquisition — well within your $200 target.
• Step 3: Set your monthly budget. Want 20 new customers per month? At $50 CPA, you need $1,000/month in ad spend.

Minimum viable budgets for Singapore:

• Facebook/Instagram: $500/month minimum to generate meaningful data
• TikTok: $300–$500/month (lower CPMs stretch budgets further)
• LinkedIn: $1,000/month minimum (higher CPMs and CPCs require more budget)

Budget allocation tip: Start with 70% on your primary platform, 20% on testing a second platform, and 10% on retargeting. Once you have data, shift budget toward whatever delivers the best CPA.