Should I Spend on Facebook Advertising?
Should You Spend Money On Facebook Ads?
Are you considering Facebook Advertising but aren’t sure how much to budget? Many business owners feel overwhelmed when figuring out how much to spend on Fb Ads. You are not alone!
In this blog post, we’ll break down what factors you need to consider when planning your ad budget and provide some tips for getting the most out of your advertising dollars. So, whether you’re just starting or are looking to optimise your current campaign, read on for insights that will help you make the most of your investment in Facebook Advertising.
1. Figure out your Facebook advertising budget per month
The first thing you need to do when setting up your Facebook advertising campaign is to figure out how much money will be spent on marketing and sales. If a business wants profit, it should always consider what’s best for driving customers in through lead generation or conversion rates!
For most small businesses these days, that means focusing mainly on getting leads to convert into sales right away. Brand awareness could help us down the line. However, it might not show immediate results from an ad click-through rate standpoint.
Most new businesses allocate 12-15% of the revenue for ads because they want to grow their business faster. On the other hand, Big companies that have been around for quite some time now maintain their budget closer to 5% or focus on getting referrals instead (word of mouth).
The significant number you need to know about your Facebook Advertising.
Cost per lead or CPL: You should know much you should spend per lead? Take note! Getting leads is essential, but you still need to convert them to sales to gain profit.
Cost per customer acquisition: You need to know how much money was spent to get every customer.
Conversion rate: If you have a sales team or directly selling online, determine how many leads you need to get to make that sales goal.
Cost per core event: Most importantly, focus on your cost per core event. For example, if you’re a business that needs a conversation before a sale, put a number on how much you can profitably afford to spend for your key event.
2. Allocate your Facebook advertising money properly
If you are already sure about your monthly ads budget, the next thing you need to do is figure out what kind of ads you will use and how much you should spend per category. You can use 20% of your budget to build an audience, engage, and educate. In these Ads, your goal is to focus on getting leads and target your possible sales.
Next is using 60% of your money to promote your service and convert your leads into sales.
Lastly, You can use the other 20% to retarget your audience. Retargeting is essential because most people don’t click and get persuaded on the first try.
3. Avoid the Following Facebook ads Mistakes
Here’s a bonus to make your campaign successful. First, you need to be patient with your ads. Wait for the date and analytics before making any changes to your campaign.
Know and decide what is your main goal in setting up your advertisement. Be careful with the types of ads you pick, as they will affect your result. Don’t expect to get big sales if you didn’t invest enough money in your Facebook advertising, especially for a starter business.
Remember to see your analytics. Great Ads always refer to correct data and numbers. Make sure to check your number before changing the details of your ads.
To sum up, Facebook advertising is not a joke. It can be a powerful tool when used correctly. It is important to remember that Facebook is a social media site and users interact with friends and family. As such, your ads should mimic the look and feel of organic posts to avoid being seen as an advertisement. Additionally, it is crucial to target your audience correctly and create relevant ads that speak to your customer’s needs. If you can do all of this, you may find great success with Facebook advertising.
Have you tried using Facebook advertising for your business? What results did you see?