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How Much Should I Budget for Facebook Ads?

 In Digital Marketing, Facebook Advertising

Are you wondering what you should budget or spend on your Facebook Ads?

Let me tell you a little bit more regarding which strategy would be best to use when budgeting for your Facebook Advertising, as well as how much you should spend per day, and how much you should start with before starting to scale upwards.

Spoiler alert!

Start by spending just R 20 per day.

Boom!

So, no need to read the rest of this blog post, as you have just gotten the answer to your question right?

Wrong!

No, you actually do need to finish reading this blog post, as there is a lot more to this whole budgeting thing.

So, yes, you can start by spending as little as R 20 per day, also known as the $ 1 a day Facebook ad spend.

Take it from someone who has been running Facebook ads for their own businesses for years now, as well as running Facebook ads for RAS Digital Marketing, I would recommend using the R 20 – R 100 per day strategy.

Well, at least for the first 1-2 weeks.

Why do I say that?

Well, let me explain to you a little better in this blog post, along with the strategy that I used to take a small marketing budget, and scale it upwards in such a way that it gave me a great ROI!

 

Where I went wrong with my Facebook marketing budget

Deciding that you are going to start spending money on Facebook Advertising for your business, and grow your brand awareness, as well as aim to bring in some new customers is a great plan!

Facebook is the world’s most affordable place to run marketing ads for any business.

But, don’t make the mistake I did at the start.

When I started my first Facebook ads campaign, I did a thumb suck, and decided that I can afford R 150 a day.

I jumped into Facebook advertising with both feet in first, and went for it…

Little did I know that you need more than just some cash, a cool looking photo, and some basic call to action tactics for a Facebook ad.

I had no strategy, no idea what my ROI should be, I had set no goals for the end result in the campaigns, and I did not research my market before launching my Facebook ad.

BIG MISTAKE!!!

And boy, oh boy, did I waste A LOT of money on that mistake!

 

So, what should you spend on your Facebook Ad budget, and what strategy should you use?

I have to admit that deciding on your Facebook marketing budget, and what you should spend is no easy task.

This important decision needs to be made based on actual data goal setting, and a strategy, before any money even leaves your bank account.

Below, I have listed what you will need to do in order to create your Facebook Ad budget, as well as to start running Facebook ads that will give you a good ROI.

Let’s get started!

Please remember that you are more than welcome to ask me any questions regarding this blog, at any time, in the comment section below.

 

What are your marketing goals?

Before a budget or strategy can be created for your Facebook Ad’s budget, you are going to need to ask yourself, “what do I want out of this?”

As an example, “I like to set out some basic goals”. See the example below, relating to what I do for each campaign:

 

The goal for my Facebook Ad campaign:

With this campaign, I want to reach 1000 targeted prospects online every month.

Convert at least 20% of them into new leads, with a lead to sales conversion of 10%. The second goal will be to grow our brand awareness, and establish RAS Digital Marketing (Pty) Ltd as the leading Digital Marketing Agency in South Africa, and thirdly, deliver unbelievably high, quality work, for our customers.

 

What does this goal mean to me and my business?

This was a simple example, but as you can see, I have set 3 goals for my campaign.

Do not underestimate the power of this short – term goal, you will be amazed at what a small goal can do once you have put it onto paper. Your team will also feel that there is something they can work towards as a team, once the campaign has been launched.

Also, look at the numbers…

I want to reach 1000 prospects, convert 20% = 200 new leads, and sell to 10% = 20 sales.

This could change as you progress through deciding what amount of money you decide to spend on your Facebook advertising, and that’s OK!

 

Next, you need to understand what your product or service costs are.

Now, I don’t really need to tell you about this, as you should know about this part…

Or else I am going to ask, what are you doing here haha! Does your keeper even know that you are outside? Unsupervised? Haha

Okay, but seriously…

You should have a pricing model or budget, based on what your product/service costs you, broken down into detail!

Do not underestimate this step

Having a budget is not something you should overlook, and I am not talking about some basic spreadsheet, I am talking about some real detailed figures!

Once you know what it costs to run your business, from rent, salaries etc. you then need to break down the costs of your product/service, and don’t forget to work in your marketing costs.

 

Create your Facebook Ads strategy

This is where things can get a bit complicated, and I really recommend that you get our team of experts at RAS Digital Marketing to help you out with this next step. to help you.

YES, SERIOUSLY!

But, let’s say you are going to try wing this on your own…

I personally like to use something called the S.M.A.R.T strategy.

This stands for. Specific, Measurable, Attainable, Realistic and Timely.

As this blog is related to creating a Facebook marketing budget, I will not go into depth on the S.M.A.R.T Digital Marketing Strategy.

But I would like to give you some insight, as to how I would do a basic Facebook strategy, and how I would use my marketing budget in different areas within the strategy.

Let’s say I have a daily budget of a R 100 that I have dedicated to my Facebook marketing campaign.

I want to run 3 different Facebook Ad campaigns, with the same R 100 budget.

 

The first campaign would be my Facebook Awareness campaign

In the Facebook Awareness campaign, I would promote some content on my website, relating to what we do from our “About Us” pages, “Blog Posts”, and our website’s “Home Page”, pushing to gain more followers.

The daily budget for this will be R 30.

See the image below regarding what this Facebook Campaign would look like:

Facebook Awareness campaign

 

The second campaign would be my Facebook Click campaign

Next, I would create a Click Ad, this will allow people to download a free brochure of our products/services.

The key to this ad, is to only let the ad be seen by the people who have already seen the content which I promoted previously, in my Awareness Campaign also known as Retargeting.

The daily budget for this will be R 30.

If you want to learn more on how we can help you to create Facebook campaigns like this, then let us do a Digital Marketing Proposal for you by clicking here.

See the image below regarding what this Facebook Campaign would look like:

Facebook Click campaign

 

The third campaign is my Facebook Lead Generation campaign

Lastly, I would now want to gain new leads.

I would use a Facebook Lead Generation campaign, and send it to people who have downloaded my FREE brochure.

The offer would either be a free quote, or a number of different things that you can think of that could be an offering as a free lead magnet.

The aim is to gain an email address from a potential prospect so that you have a new lead.

The daily budget for this will be R 40.

See the image below regarding what this Facebook Campaign would look like:

Facebook Lead Generation campaign 

 

This is a simple, but extremely effective Facebook strategy that really works!

Why on earth does this work so well?

So, you see most people who run Facebook Ads create an ad, and just send it out telling people to buy, buy, buy or signup. Rush, rush, rush.

This follows the jab, jab, right hook method. Great book by Gary Vaynerchuk

At RAS Digital Marketing, we help people first, and then we ask for something in return.

By following this simple strategy, you will gain much better leads, which will require less time in educating them about who you are, and what you do.

I know that this was a simple strategy, but the aim was to explain to you how you should spend your Facebook marketing budget in a smarter way, to get a better ROI.

Oh, and ROI means Return on Investment… just in case you were wondering. I should have probably mentioned that earlier. Blond moment.

 

Launch your Facebook Ads campaigns at the right time

Once you have decided what your total marketing budget is, you have your goals, and your strategy set…

It’s time to launch that bad boy into the world!

Do a quick overview of your budget, and make sure your Facebook Ads are ready to launch.

Next is another thing that I learned the hard way…

When launching your Facebook Ads, make sure to deploy them at 12:00  midnight.

This will help your ads gain better data.

Pity that I only learned this after running thousands of Facebook campaigns.

Launching at midnight gave me a much better reach and cheaper clicks to my Facebook Ads.

Check out the image below to see where you can set the starting time for your Facebook campaign:

Launch your Facebook Ads campaigns at the right time

 

So, what should you be spending on your Facebook Ads every month?

Once you have your strategy, and you have worked out what percentage you can add on top of your product/service for your Facebook marketing, you will have a better spending strategy, to measure your ROI against.

I will recommend that you work into your budget a 2-10% cost for your marketing ads. Remember that this can change based on industry, as well as the amount of products/services you sell per month or per quarter.

Right now, at RAS Digital Marketing, we use a 5-8% marketing mark-up on our services.

This percentage changes from time to time, and we review our marketing strategy, budget, and pricing, every quarter, to ensure that we are getting the best ROI.

If you need a Digital Marketing Proposal, then don’t waste any more time, click here and let us get started on your Digital Marketing Today!

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