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It depends on the business that one is doing that require if the person can spend such huge amounts on Facebook ads. Someone like me that's still finding my feet won't spend that much on ads rather I add it more in my business to grow.
When it comes to spending on advertisement on any social media platform that you're going to use, it is very important for you to have a target goal with each and every advertisement that you're doing. This is so that you know you are not simply just wasting your money on ads without having your investment maximized for better profit making.
Spending huge on your Facebook ads or any other ads wouldn't necessarily mean you're getting the best result. It's spending right that makes a lot of sense. With a tailored budget used judiciously, you will have a better result than someone who just spend big.