So you’ve decided to dive into the world of Facebook advertising and wonder where to start from? Don’t worry, we’ve got you covered! Facebook is the most used social media platform in the world with around 3 billion active users a month as of the second quarter of 2023. This makes it a perfect place to advertise your services and target your audience!
Okay, so now that you know you’ve made a decision to start advertising on Facebook, you might wonder how you can ensure that your social media marketing budget won’t be wasted. You’re probably also considering how much you should spend to get a significant return on investment as you prepare to allocate your money for your Facebook advertising campaign.
However, before we talk about what an ‘ideal’ budget is, let’s go through how to use Facebook Ads Manager’s budgeting tools.
How to Set up a Facebook Ads Budget
Depending on how much power you want to give Facebook’s algorithm for ad optimisation, you can choose how much money you want to spend. Setting an advertising budget in Facebook Ads Manager is essential for making sure your marketing campaign is successful. A well-planned budget not only makes the most of your resources but also of your investment (ROI).
Campaign vs. Ad Set Budget
In Facebook Ads Manager, you get to decide whether you want one big budget for your entire campaign or separate budgets for different ad sets. If you’re not sure which option you should go for, don’t worry. We will try to make it easier for you to decide as we go.
With campaign budgets, you toss all your money into one pot, and it gets divvied up among your different ad sets based on what seems most promising. If you’re open to adaptable budget distribution, this method is relatively low-effort and often leads to cost-effective outcomes.
Alternatively, you can go for individual ad set budgets. This gives you total control over how much cash each ad set gets. It’s super handy when your ads have different goals or your audience sizes are all over the place. Especially, if you’re testing different ad strategies, this is the way to go.
Lifetime vs. Daily Budget
Whether you opt for a campaign or ad set budget, you’ll need to choose between a lifetime budget and a daily budget.
Daily budgets are like setting a spending limit for every day. They work well if you prefer to keep a relatively consistent spending pattern each day. However, bear in mind that daily budgets are not rigid caps. They can vary slightly on a day-to-day basis.
On the flip side, lifetime budgets are like setting a total spending cap for your whole campaign. You decide the total amount, and Facebook won’t let you go over. It’s awesome if you don’t care if you spend more on a Friday night than a Monday morning.
What Is an ‘Ideal’ Facebook Ads Budget?
And the burning question is… How much should you utilise for your Facebook Ads? Finding the ‘ideal’ budget is a bit like trying to find the perfect pizza topping – it depends on your taste (or in this case, your business goals and resources). Let’s slice through the confusion and break down what factors you need to consider when deciding on your perfect budget.
Take it easy
You don’t need to break the bank to make your Facebook ads successful. First, set a budget on Facebook that won’t stress you out and that aligns with your financial capabilities.
Keep an eye on Facebook’s minimum budget suggestions
While you don’t want to break the bank, it’s worth listening to what Facebook recommends you should spend as a minimum. You will be notified if your budget is too low to get the results you’re after. This will give you some valuable insights into your future spending expectations.
Test and learn as you go
Don’t put all your eggs in one basket. Test different ad formats, audiences, and budgets to see what works is most effective for your business. Facebook Ads Manager gives you some great insights on what works best. Take advantage of this feedback to adapt your budget and optimise your campaigns.
Maximising your Facebook Ads Budget
So, you’ve set your Facebook Ads budget, and now you’re wondering how to make every penny count. There are some strategies that will help you to stretch your budget and get the most out of your investment. Let’s dive into it more deeply and explore some of the ways.
Narrow down your audience
Focusing on your target audience will help you better utilise your spending. Instead of casting a wide net, concentrate on a demographic that matches the needs of your product or service. By doing so, you can connect with those who are really interested in what you have to offer. When you speak directly to the right audience, your conversion rates increase and the money isn’t wasted on unnecessary clicks.
Optimise Landing Pages
Your ad might be brilliant, but if your landing page doesn’t impress, you’ll lose potential customers. Make sure your site is user-friendly, and informative, and guides visitors smoothly towards making a purchase. When your landing page shines, you get more conversions, making every click count.
Monitor and optimise as needed
Keep an eye out and regularly monitor your ad performance using Facebook Ads Manager. Make sure you analyse key metrics such as click-through rates, conversion rates, and return on ad spend. Identify what works and what doesn’t. Pause underperforming ads, tweak your targeting, and reallocate your budget to top-performing campaigns.
Ready to Boost Your Revenue with Facebook Ads?
Now that we’ve broken down all the doubts you might have had about setting up a Facebook Ads budget, you can start putting the theory into practice!
I hope that by utilising all the tips and tricks we’ve covered, you can take the most out of your Facebook Ads investment and drive meaningful results for your business. If you still feel like you could use some support, our paid social team is ready to help.