Before starting a social campaign project I am always asked what is the right budget to invest in Facebook advertising .
Finding an answer is difficult because it cannot be unique and valid for everyone. But since I like challenges, in this article I want to try to find a solution to your request.
Marketing with Facebook advertising
To understand the importance of a social advertising strategy, you can start from an analysis of data on social platforms:
1 in 2 Italians declares to use Facebook: it is possible to count 38 million active users in Italy
The average time spent by Italians on social media is 1 hour and 52 minutes per day
These two statistics alone can give you an idea of the engagement and interaction possibilities you can obtain by leveraging social campaigns.
There are 3 million companies in the world that have decided to invest in Facebook sponsored ads, having understood their potential.
The premises before starting social campaigns
Before we begin, some prefaces are necessary. In fact, the marketing budget that you will have to spend varies greatly depending on the scenario in which you find yourself.
To summarize, your investment will vary based on:
The sector in which you operate and the type of service and/or product you offer.
To the competitiveness and saturation factor of your target market.
To the business model (local business, e-commerce, lead acquisition).
The goals you want to achieve and the time in which you want to achieve them.
In an article for Noiza I explain how the Facebook auction system works , based on the algorithm that chooses the best ads and selects who to show them to.
Importance of Budget and Planning
During a campaign, Meta shows your ad in competition with others that are targeting the same audience. By allocating the right budget and time, your ad becomes more competitive, allowing the system to show it to more people and learn who is more likely to take action.
The budget is just one of the many components that this complex system takes into account.
Define your budget for Facebook advertising
To understand how much money you need to invest in Facebook advertising, we need to know the fundamental metric: coverage .
In fact, the main purpose of sponsored ads is to reach more people . So, how much can it cost to reach your audience?
For example, in Italy in August 2021 the average CPM (average cost per 1000 impressions) was €6-€8, while the CPC (cost per click on the link) was €1.20.
When we have this data, it will be enough to multiply the CPC value by the number of people we want to reach or by the visits to our site we want to obtain.
Estimating the budget: let’s do the math
The investment, as explained in the chapters above, also has a variable in the objective to be achieved . In fact, based on this it will be necessary to adopt different strategies.
Meta Ads for Ecommerce
If you want to advertise for e-commerce you should plan on having three or four campaigns to collect enough data to analyze.
Two campaigns will be prospecting :
We will test two different targets, but in line with our brand. At this stage it is advisable to allocate 60% to 90% of our budget .
The remaining investment will be used for the next two campaigns, namely retargeting ones . In fact, with these a second message will be sent only to people who interacted with our first campaign.
To start with social advertising on Facebook and get results you need to plan at least 3 months of testing . Keep in mind, however, that you will have to invest no less than €60/day for the prospecting phase, and less than €25-30/day for retargeting. In fact, these costs will allow us to reach at least 300 thousand users per month, based on the average CPM costs of August 2021 .
Remember that these costs are an estimate and vary based on the factors we discussed above. In most cases, this investment will only be enough for the first testing phase, but it will also provide us with important information:
We can understand the average costs of delivery and conversion.
We can recognize your target.
We will understand how to optimize the copy and creativity of your ads.
Lead Generation Campaign
Facebook can become an ally in collecting profiled contacts , i.e. users who may be interested in the services or products offered by the Brand.
The campaigns to adopt are very similar to those in the previous chapter, but it will be possible to spend a little less. In fact, if you have the objective of collecting personal data, you can plan 1 or 2 prospecting campaigns and only one retargeting campaign.
My advice is to not spend less than €12–15/day for the first phase and €5–8/day for the second.
This data, which often consists both demographic and mobile contact information, is crucial for outbound marketing initiatives. Any data you use or process from the Jamaica Mobile Database must remain accurate. Marketing data middle east mobile number list about Jamaica Mobile Database is available for nations such as Mexico, India, Brazil, Argentina, Australia, and Japan via mobile databases.
Offline Conversion
If you want to give visibility to a aliexpress annual fee physical store you will have to consider 3 variants:
the geographical area.
the competition.
the distance a potential customer is willing to travel to reach your point of sale.
If we consider a radius of 25km Facebook ch leads allows us to reach about 78 thousand people. Going back to the calculations with the CPM, we should multiply this by 78 and we will find the necessary expense.
In this case, my advice is to divide the budget into a prospecting campaign and a retargeting campaign.
How does your budget affect campaign performance?
Your budget is one of the biggest factors in the success of your ad. With the right budget, Meta’s delivery system can show your ad to more people and learn who is most likely to take action.
Recent changes in digital advertising have meant less data is available to advertisers, and some companies have seen performance declines and higher costs.
Calculate your KPIs using this file.
Click here and make a copy of the file so you can use it
Facebook Advertising ROI Analysis
Measuring the success of your Facebook campaigns is not just a matter of likes and shares. ROI (Return on Investment) analysis is crucial to understanding the effectiveness of your advertising investments. Learn to calculate ROI by evaluating the costs of campaigns compared to the profits generated, and discover how to optimize your strategies for an even greater economic return.
Using the Facebook Pixel Effectively
The Facebook Pixel is a powerful tool for tracking conversions and personalizing your campaigns. In this in-depth article , I show you how to set up and use the Pixel to optimize your advertising strategy, create custom audiences, and improve your conversion tracking. Discover how to make the most of this tool for targeted and effective advertising.
Five Tips to Reduce Your Ad Costs.
1# Consolidate your campaigns and ad groups
By reducing the number of ad groups and campaigns, you can keep your ads competitive in the Meta ad auction by focusing your budget.
Reducing the number of ad groups can also help your ads exit the learning phase more quickly. Pause ads and ad groups with overlapping audiences, especially those that aren’t performing well.
Try combining ad groups with different audiences or placements, but with the same creative.
Try to only run one campaign at a time unless your campaigns have different goals.
2# Expand your targeting
Small businesses that used broad targeting in their campaigns—that is, targeting by location, age, or gender—achieved a 12% lower CPA (cost per action) on average, compared to campaigns that didn’t use broad targeting.
Use only age, gender and location targeting. If you add detailed targeting, make sure detailed targeting expansion is enabled.
Please refer to the estimated audience size under “audience definition” when creating your ad group.
To help your budget reach more people, consider growing your audience. For most advertisers, an audience of at least 2 million people is ideal.
3# Activate Advantage+ placements
Advantage+ placements allow our system to find the most cost-effective options across Facebook, Instagram, Audience Network, and Messenger.
With more options, the system can determine in real time where your ads will perform best at the lowest cost . To use Advantage+ placements, select the option when creating your ad group in Ads Manager.
4# Make sure your ads are mobile-friendly
Many of your customers browse Facebook and Instagram on their mobile devices. Here are some best practices:
Make sure your video is vertical , not horizontal.
Keep your video length to 15 seconds or less.
In video ads, capture attention and include your brand or product’s main message in the first three seconds.
5# Improve your ad creatives: use videos!
In this article I will explain how to improve the creative of your ads in particular, how to build an effective video ad.
Your ad copy and headlines are also a key part of a great ad, read this article to learn how to build copy that sells.
Try these extra tips to make your budget work harder:
You can use Meta’s built-in A/B testing tool to find the best creative, best placements, or best audience for your campaigns.
Meta will split your budget between the two options, and you can measure results based on CPR (cost per result) or cost per conversion increase.
To set up an A/B test, select a campaign or ad group in Ads Manager and click the button labeled A/B test.
Run your ads for at least seven days
To allow the delivery system to optimize, make sure to run your ads for at least seven days. This will help you get the most bang for your buck.
Optimize for the right goal
When setting up your ad, make sure you choose the right objective for your business goals.
Try an “always on” approach to your advertising presence
Maintaining an “always on” advertising presence can help generate more results for your business over time.
