Businesses of all sizes are using Facebook ads to reach new customers, but with so many options and potential strategies, it can be difficult to know how much to spend.
In this blog post, we’ll break down some key factors to consider when setting your Facebook ad budget.
Factors to Consider: There are a few key factors you’ll need to consider when setting your Facebook ad budget:
Your business goals
What are you hoping to achieve with your Facebook ads?
Increasing brand awareness?
Getting more sales? Your answer will help you determine how much you should spend.
Your target audience
Who are you trying to reach with your ads?
Defining your target audience will help you choose the right strategy and messaging for your ads, and will also impact how much you’ll need to spend. We are talking about 100% alignment around “message-to-market” match.
Your ad objectives
What type of ad do you want to run?
There are a number of different objectives you can choose from, each with its own benefits.
For example, if you’re looking to generate leads, you’ll want to choose an objective that allows people to take action, like “Sign Up” or “Get a Quote.”
But if you’re just trying to increase brand awareness, a video view objective might be a better choice.
Again, your answer here will help determine both your strategy and your budget.
Once you’ve considered these factors, you’ll have a better idea of what kind of budget you’ll need to set for your Facebook ad campaign.
Note: We use a special pre-launch Facebook ads “profitability calculation” approach for each market. This includes your AOV, expected CPA and CLTV, among other things. If we pre-plan everything, plug in the numbers, including expected conversion numbers, we can estimate your necessary ad spend.
Book a call below, and we’ll take you through it: