How to choose the right daily budget for your Facebook ads campaign.
So, you want to master your Facebook ads budgeting?
They’re designed to help build your brand awareness, reach new audiences and drive those crucial e-commerce sales [if you use them wisely]. Facebook ads are a cost-effective form of digital advertising that target audiences based on their demographic, characteristics and likelihood to fulfil the aim of the advert and complete a conversion.
It’s all very clever and fairly simple, but that doesn’t mean you should leave the budget to guesswork. Follow our simple steps below to ensure you use your Facebook advertising daily budget as effectively as possible in line with your campaign objective, marketing budget and business goals.
Understanding your Facebook ad spend budget
In order to make an informed decision about the best daily budget for your Facebook ads, you need to know how to budget your Facebook ad spend based on your revenue goal. You also need to understand how to effectively distribute your budget across your Facebook ad campaigns to meet that goal. Luckily, our social media marketing maestros have laid out the basic steps to follow to ensure your Facebook ads get off to soaring success.
Step one: decide your Facebook advertising budget [and be realistic]
You must first understand your overall marketing budget for your business. A business’s marketing budget typically falls between 5-12%, however, this amount will be determined by the trajectory of your business growth.
To apply the optimal daily budget on Facebook ads, you need to understand your cost per lead, cost per core event, cost per customer acquisition and conversion rate. When it comes to advertising on Facebook, you may find that the lowest cost per lead campaigns don’t necessarily produce the lowest cost per core event.
Determining the exact ad spend that’s perfect for your business depends on your expectations and goals. You can also reverse-engineer past industry data to determine how many leads you’ll need to reach your growth or financial target goal, and how much you can afford to spend to acquire one customer, to calculate your Facebook ads budget.
Step two: distribute your Facebook ad spend
Your dedicated Facebook advertising budget should be distributed based on the types of ads you’re planning to run. If you want to leverage a long-term audience, you’ll need to focus some of your ads budget specifically on audience-building, engagement and education to ensure the leads you generate remain engaged with your business.
You’ll also need to consider an allocated budget for retargeting efforts for audience members who engage with your ad initially but don’t complete a conversion. Most importantly, your Facebook ad spend budget should also be dedicated to promoting your offer and generating valuable conversions, so you need to find the right balance of all three based on your current figures.
Step three: monitor and nurture your ads to adjust your budget accordingly
To effectively choose a budget, you need to monitor the performance of your Facebook ads to avoid over or underspending. By not spending enough on your ad, Facebook will distribute your budget so thinly over the set period that you may not generate the number of leads potentially available and you’ll miss potential customers. [Disastrous, right?]
Consider customising your Facebook ads reports to show the data that is the most valuable to your business. Whilst performance is the default data displayed, by navigating to the customise columns option in ads manager, you can also select engagement, performance and clicks and offline conversions. By adding or removing data from your reports, you can ensure they’re tailored to reflect the goals of your ad and adjust your Facebook ads budget based on how well they’re meeting this goal.
Our advice? Leave it to a professional Facebook ads agency
By following these steps, you’ll be able to better optimise how your daily budget is being spent on your Facebook ads campaign. Understanding your business numbers, goals and industry data will help you to make more informed decisions on your Facebook ads daily budget to enhance your campaign performance.
However, if you want a group of social media advertising experts to do the leg work for you, Ketchup’s Facebook advertising services can collect the data, conduct the research and design the ads that help you reach your business goals.
Let our friendly team bring you one [huge] step closer to advertising excellence with a quick chat on 0115 671 3868.