Almost everyone that comes to me for Facebook advertising support has run some sort of campaign themselves.
Maybe they’ve boosted a few posts, or thrown a few hundred pounds towards ads… but sadly, the majority of people haven’t seen the results they’d hoped for.
One of the questions they always ask is: how much should I spend on Facebook ads?
This is a great question, because with Facebook, you can spend as little as £1 per day and you can scale that spend to whatever you like. It can be a little overwhelming knowing where to start!
But every business is different so here’s a process you can go through. The first thing you want to do is…
Look at your advertising budget
Do you have a budget for advertising? Is there a maximum you can spend?
Perhaps you work for a company and have a limit on the amount you can spend.
I actually advise not having a budget where possible. Because, if your ads are performing well, you should start to see a return on within a few weeks. You won’t need a budget because you’ll be making money on the ads. However, I do understand that some companies will have a set budget. If that’s you, determining your budget is the first thing you need to do.
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The next thing to do is…
Take a look at previous conversions
As a marketer, you should have a rough idea on the number of leads/enquiries/website visits you need in order to convert someone into a customer.
It’s important to have data on your cost per lead, or cost per sale. If you don’t have these, what are your targets?
For example, if you know for every 100 people that sign up for your webinar you make 5 sales, and that 5 customers bring in £500 revenue each, you know you need to that in order to run a profitable Facebook campaign, you need to spend less that £2500 to get 100 people to sign up to your webinar.
If you have data like this to hand, you can easily take your goals and conversion rates and figure out how much you have to spend to make your return on investment.
Despite all this, there’s one thing I recommend doing…
Start small before scaling
It’s important to start any Facebook advertising campaign with a small daily budget. I always recommend starting with something like £10-£50 per day. Every successful Facebook advertising campaign requires a lot of testing and optimisation before it really starts to work.
If you start a campaign off with too high a budget, Facebook will swell to that budget and you’ll end up paying more for your clicks and conversions.
Start with a small budget, test and adapt and when you reach a conversion cost that works for you, start scaling the spend up. By that point, it should effectively be like a tap. You can increase the spend when you want more leads and you can reduce it when you can’t take anyone else on.
If you work through those three steps, you should come out with a good understanding on how much you should spend on your Facebook advertising. In my Amplify training programme, I have a full module dedicated to coming up with your Facebook goals and budget. There’s even a calculator to make it easy for you to figure out.