Facebook ad budgets for small business
Facebook advertising is a growing marketing tool for small businesses. If you are interested in testing or generating business with Facebook ads, the big question is how much to spend.
Do you wonder if you can spend $5 or need to spend $500 to see results? The answer is yes, to both! It really comes down to what you want to achieve.
What to decide first
Decide on your marketing goal first. In Facebook, these are called ‘campaign objectives’. Facebook has three categories for campaign objectives.
- Awareness such as brand awareness by interest, or reach to be seen by a maximum amount of people.
- Consideration such as more engagement for your posts, more likes for your business page, video views, or sending traffic to a website.
- Conversion such as store visits, conversions to paying customers, or product sales.
The campaign objective lets Facebook know what your ultimate advertising goal is, and they will automatically optimize who sees your ad for best results.
Setting a Facebook Ad budget
You will never spend more than you want on Facebook ads. If your budget is $5 a day, you will not spend more than that. What you get for that $5 depends on several different factors.
You can set your budget in Facebook on a daily or lifetime basis. Your daily budget is the average that you will spend each day. A lifetime budget is the total you will spend during the timeframe you set your advert to run.
What affects the cost of an ad:
- The audience you are targeting
- The quality of your ad
- The time of year
If you want to test out running ads, $10 a day for each ad is a great place to start.
You need to run each ad for at least 3 days so that Facebook can optimize your campaign. Facebook automatically delivers your ad to different groups of people to find the best ones for your goal.
This means that for $30 for each ad, you get just enough data to see if it performed well or not. You can adjust from then. Facebook advertising requires constant testing and adjusting.
After you have ads that are performing as you want, you can start to scale your ad budget. The rule of thumb is to scale at 15-20%.
Types of ads to create
Every potential customer or client is at a different point in the buying cycle – some may be just becoming aware of your business, some may be considering buying, and some are ready to purchase. Each group will need different types of ads, to match where they are in the buying cycle.
Getting good results from a small Facebook ad budget is as much about the marketing behind the ad, as the ads and budget themselves.
Need help with getting the most out of your Facebook ads? Contact Danielle on 760-440-5494 or firstname.lastname@example.org
Tip of the Week: Set your Facebook ad budget to meet your marketing goals.