In modern reality, there is no business out there that does not use Facebook ads for marketing, as it is one of the most popular social media platforms (Facebook, Instagram, Linkedin, etc.) in the world. With its help, it is much easier to tell the world about your goods/services, involve more people and get potential leads that would be interested in purchasing whatever you are offering.
But how to calculate an optimal budget for a successful Facebook advertising campaign? Let’s discuss it in the article.
Creating a Successful Facebook Ad Campaign
Every business owner is dreaming about the insane ROI and making a sale every few minutes that will bring their success to the top instantly. But, in order to achieve that, everyone needs a thought-through strategy and understanding of the whole process. We have prepared a short version in just three steps in order to explain to you the essentials of this long road.
Step 1. Calculating the Minimal Cost For a Facebook Ad
First of all, it is necessary to set the minimum budget for your campaign. Agree, the ad with minimal one would be more effective than no ad at all. Even if you spend $1 per day, it will generate at least 37 thousand impressions per year that will possibly turn into engagement in the future. 37k people and each of them can be a potential lead.
However, a minimal cost is usually spent in order to follow up with those who are already familiar with your brand. It includes the following audience: those who have already made the purchase; people who have added products to the cart but didn’t complete the order; page or website visitors that did not buy anything.
Step 2. Increasing Conversions
The next level is to start using all the benefits Facebook algorithms can offer you. In order to do that, you need to achieve at least 50 conversions per week. After that, Facebook will start to search for a more relevant target audience that is most likely to bring profit.
It is worth mentioning that “conversion” is not always a purchase. It also includes any profitable action by a lead with your ad. So, it can be link clicks or pressing on the “add-to-cart” button. After that, it is important to calculate how much money you need to spend in order to get those 50 clicks.
To do that, you just need to check out how many dollars you spend for link clicks or add to cart now and multiply it by 50. The results will be your budget for a week. E.g., if your average price for a link click is $1.50, your weekly ad budget will make $75.
Step 3. Raising the Ads Cost
The following logical step is to get selling revenue increase by raising the number of weekly add-to-carts, as well as purchases to 50. So, you should repeat a similar scheme to the one we have already described in step 2. Determine how much is cost-per-purchase and multiply it by 50. So, if the purchase brought by your ads costs $10, your weekly budget will be $500. Here’s how much Facebook ads cost in the UK.
Achieving the Best Results from the Facebook Ad Spend
After successful recalculation of Facebook’s budget for your business, it will be high time for ads to optimize. You may not be aware of it, but the way your post looks has a significant impact on how your targeting audiences would interact with the ad. You may also pay more attention to conversion rate optimization.
Run a few test ads campaigns in order to collect more data on your target audience and reduce money spends per month. Every dollar is important in Facebook ads. It is better to spend it on showing the post with offers to those who are more likely will become a lead.
Reduce ineffective ad spend
After analyzing the results, running various ads creatives, testing out different calls to action, you should figure out which ones had the most considerable success among the potential leads. There is no need in spending money on something that does not work out well. In marketing, the top priority is to reach revenue goals and make the strategy as profitable as possible.
Increase Budget on the Well-Performing Facebook Ads
As you’ve may already guess, the next step for your business is to collect the data about those who saw your ads, define the best performing ads among those you’ve been testing, raise a budget on them, and be ready to generate leads. You will see the first results, as well as a positive ROI, within less than a month after the start.
The Bottom Line
Every business knows that Facebook marketing is a chain of tests, experiments, recalculations, and tests again. The most important thing is not to give up, be patient, and you will see positive results in no time. Lead generation may take some time, but it will indeed become effective sooner or later. Good luck with your Facebook campaign, and remember – everything is possible if you truly believe in that!