You’ve probably either been tempted by the pull of Facebook advertising for your business or you’ve started dabbling in Facebook Ads Manager, but feel a little out of your depth. Often the first question asked by newbies is how much they should be spending. We’re going to address that.
First thing’s first: ask the better question
Asking how much you should be spending on Facebook advertising is like asking how much a car should cost you. It’s all relative. Is your goal just to get from A to B? Are you hoping to drive in luxury or transport a family of five? There are more important questions to ask before you decide on how much to spend. One of those questions is what are your goals?
So, what are your goals?
Is your business targeting a specific revenue figure and aiming to use Facebook advertising to reach that goal? Are you purely trying to achieve more traffic to your website and pay for eyeballs and potential leads? Is it purely new customers you’re after? All of these questions will help you to create a campaign with a specific target and the budget will work in conjunction with that to achieve this goal.
Don’t just pay and pray
Those who are new to Facebook advertising will regularly put a significant amount of money into Facebook advertising with a very poor strategy or campaign and assume that by forking out large sums of money they will automatically generate leads and sales. These people always end up disappointed.
You can do a specific calculation to try and find an accurate figure of what you should be spending to achieve your goals. If your website generates a conversion rate of around 2% and your revenue target is R50 000 for the month and your average order is R140, the campaign would need to generate 358 sales. To reach the number of impressions that should reach that target, you’d be looking to spend around R18 000 on Facebook advertising.
It sounds high, but you would be making a return of 2.78, which means for every rand you spend you’d make R2.78.
You have to spend money to make money
Don’t go into Facebook advertising unless you are willing to commit a healthy budget to the plan. While it doesn’t need to be R18 000 at first and it’s even advisable to start smaller and scale upwards, you shouldn’t be committing just a couple hundred rand to the campaign. This won’t allow your strategy to get off the ground and bring back the information you need to improve your strategy.
Continuously monitor and tweak your campaigns
That brings us to the final point. Don’t think that your strategy worked the first time so you can just keep repeating. Whether it works well or didn’t work at all, you need to carefully look at your results and identify areas to tweak metrics and targeting and generate even better results in the next campaign.
In no time you’ll be enjoying the practice and benefiting your business at the same time.
So, there is no magic number to be spending. Instead, ask better questions.
Why not contact The Media Crowd? We are specialists in this area of marketing and will assist you in achieving results for your business in no time!