Whether you have a large, medium, or small business, determining your Facebook Ads budget will help you earn more, spending less. Find out how.
Before starting with Facebook Ads, as a large, medium, or small business owner, you need to determine the budget you are willing to spend to show your ads to as many people as possible in your target audience. Facebook offers several ways to set a budget: by campaigns, by ad set, on a daily basis, or by a total amount. In this article, we'll teach you not only about the different ways to set a good budget for Facebook Ads, but also how to know how much you should spend on your social ads campaigns.
Set campaign goals
There are many factors to consider when setting your campaign goals on Facebook and deciding the percentage of your ad spend. Think about the commercial objective, the duration of the campaign, the price of your products or services, the costs of the conversions, and the apparent small details that matter.
Knowing all this data about your business will give you a wide margin to know your possibilities regarding your Facebook ads budget.
Should I use the Facebook Campaign Planner?
The Facebook Campaign Planner is a tool provided by the platform, used by digital marketing professionals to forecast and budget, however, if you are not a pro with ads it could be challenging trying to do so.
Types of budgets in Facebook Ads
There are a number of ways to set your ad budget in Facebook Ads from setting the overall cost for a campaign to deciding individual budgets for ad sets.
Campaign budget optimization sets the central amount for multiple ad sets and distributes them in real-time. This contributes to being able to achieve a higher success rate at a lower cost. In other words, you earn more, spending less! Additionally, the purpose of this type of configuration is to simplify actions and decrease the number of manual budgets that would need to be performed.
On the other hand, establishing individual budgets allows you to optimize the performance of a specific ad in case there are substantial differences between them, such as the spectrum of audiences or different bidding strategies.
It doesn't matter if you decide to set your budget based on campaigns or sets, these can be daily or total, but what does it mean for your business?
Total or Daily Budget for Facebook Ads?
A daily budget for Facebook Ads means that the same amount of money will be spent on a campaign or ad set per day to deliver consistent, linear results.
On the other hand, total budgets, as the name says, use the full amount to invest during the active life of the ad.
The difference between the two is that the daily budget will spend the daily average that you determine with a slight margin, while the total budget will work dynamically with your ads during the given period.
How much should I invest in Facebook Ads?
There is no specific amount that warns you about how much you should invest in your Facebook Ads or the exact amount to allocate to your campaigns or ad sets. In general, 48 hours of activity are required to collect data that will later be used to analyze performance and determine a better budget. If you're just getting started, it may be easier to let the algorithm determine which ad is working better.
To determine your Facebook Ads budget, take into account different elements.
Your Facebook Ad Objectives
What do you want to achieve with your ads? Is it your objective that people know your brand or business, is it to sell your products or services, retain customers, or create a bigger database? Once you are clear about what you want to accomplish and what are your goals, analyze how much it costs to achieve it.
Depending on the main objective, it will be easier to determine a budget according to it, investigating the cost of completing that action and calculating how many times we want that action to be repeated in a given time.
Minimum daily budget for Facebook Ads
Having our objectives selected and taking all factors into account, we can determine our minimum daily budget for Facebook ads. According to Facebook’s best practices, “for ad set budgets, most advertisers who are charged for impressions should allocate at least $1 per day for daily budgets”. Impressions and interaction campaign results are less expensive than leads and sales campaigns. However, the minimum budget you spend on ads depends entirely on the main business goals you set for using Facebook ads.
Facebook Ads Funnel
Going back to the first matter of the commercial objectives, it is not the same to budget a campaign aimed at people who do not know our business or brand, as one directed at regular clients. Audiences change, actions change and budgets change too. Facebook ads are effective for small businesses. But, as it is with traditional marketing, the funnel is longer for small companies, because at first, you need potential clients to learn about your brand, services, and products before they buy from you.
ROI on Facebook Ads
To calculate your ROI on Facebook Ads (in other words your return of investment), you need to also analyze your costs vs what you will invest and what you are earning at the end. Let's think that we have to make a list of what our product costs, manufacture it, send it, labor, and everything consistent with fixed expenses. Analyze your share of free profit, and what you are willing to invest in ads. Based on that, consider how much you can allocate to obtain customers, retain them, and much more. Having all this information can let you determine which is a good return on investment for your Facebook Ads.
The Ad budget must be adapted to your needs
There are no specific formulas that tell us how much money we should invest in Facebook Ads. But there are a series of variables that we have to consider with our real numbers to see how much we are willing to invest and then distribute it among the different edges.
If you are just starting out, you probably want to test how it works by running small campaigns or sets of ads with a minimal budget and analyzing the results. The best advice is to consult a Facebook Ads specialist or type in Google: digital marketing agency near me to find experts that will help you determine some parameters or, carry out the campaigns for you.
Get help from experts: Hire a Digital Marketing Agency!
The best way to maximize the benefits of a platform like Facebook Ads is to leave these tasks in the hands of professionals and specialists in digital marketing. Business owners sometimes spend valuable time and money learning, practicing and experimenting with campaigns for a long time before achieving any results. Jump to performance instead, hire Facebook ads specialists to get to your goals faster.
Get in touch with the Best Digital Marketing Agency in Miami
Yes, at Creatum Studios we pride ourselves to be the best digital agency in Miami. Why? Because we work with a team of certified experts in digital marketing (including Facebook Ads, Instagram Ads, Google ads, Youtube, and so much more), branding, SEO, and SEM. Plus, we offer a personal project manager to each client, in order to bring a top-notch service and work together to accomplish real business goals in an effective way.
Get timely results, sales, and growth for your business starting now! Contact us and start working with your digital marketing agency in Miami Fl (or anywhere in the world, we are allies of remote work!). Request here a complimentary personalized proposal for your business.
