Here’s exactly how much you should spend to kick start your Facebook Marketing Campaign
Some of you aren’t going to like this. We always get asked in the beginning how much is necessary for ad budget, and it of course depends on so many factors, the main one being budget! But here’s exactly what we do and how much we spend when we launch a campaign for a new product/website.
Start with high budgets
There’s a number of reasons for starting with really high budgets, and then decreasing/increasing depending on results. But there’s also a way to calculate what those high budgets should be:
How much does a conversion cost you?
It all depends on what a conversion costs you. Now if this is a brand new product you need to come up with an estimate based on your knowledge of previous campaigns. But let’s say you’re optimising for purchases and your cost per purchase on Facebook ads is usually £10. This means for every £10 you spend on your Facebook ad, you get 1 sale.
Test with 10x your cost per conversion
You want to test around 10 ad sets to start with, and each ad set should have a budget of at least 10x your cost per conversion. This means £10 x 10 = £100 – £100 x 10 (ad sets) = £1000 per day.
£1000 Per Day
This allows for optimisation
You need this sort of budget so that Facebook can properly optimise your campaign with the right amount of data, while still being able to test enough different placements and targeting. You can try multiple ads in each ad set to see if any of them out perform the others.
Do less testing if you have a smaller budget
If your budget doesn’t allow for that many ad sets, do less. If you did 5 ad sets at £100 per day that’s £500 per day total spend. It just means you can’t test as many variables.
Cut and scale
Once you have these ads running for a few days you should have enough data to see which ads are bringing in the conversions and which aren’t doing so well. That means you can increase or decrease the budgets for the ad sets based on how they are performing.
Are you confident enough in your product?
This strategy isn’t for the faint hearted. If your budget is limited then other methods are much more advisable until you have the sort of capital that can handle a campaign like this. It’s still important to be completely confident in your product even if you do have the capital to use this strategy. No amount of paid ads can sell a product that no one wants to buy.
If you’re looking for some advice or for someone to run your Facebook ads for you, just fill in the form below with a brief description of your business and your goals and we’ll be in touch.
[contact-form-7 id=”7″ title=”Contact form 1″]
