So how much should you spend on a Facebook campaign?
In this post I’ll talk you through the process that we follow in order to answer that question.
OK, let’s get started….
Step 1 – Define your audience
If you know who you’re targeting, then you can define the size of your audience. At that point Facebook will give you an estimate of what it’s going to cost to reach that audience.
Typically, I break the target audience into 2 areas:
Your warm audiences are people who have shown some kind of interest in your product/business. When we work with clients we will normally target the following warm audiences:
Warm audiences are where we put our first advertising dollars.
Then we turn our attention to cold audiences. These are the audiences where we use interest, demographic & behavior targeting to identify a group of people who are likely to fit into one of our customer personas.
How much will it cost to target these audiences?
So, you’ve defined your audiences, you now need to figure out how much you need to spend to reach them.
To understand that, you need to head into Facebook’s Ads Manager and follow these steps.
In the example below, I have selected an audience of 92,000 and I can see that a budget of $50 per day will give me a reach of between 2800-9500.
Whilst this is a big range it does give me a rough estimate. I can then monitor the campaign once it’s live to see my actuals.
When I set up a campaign, I’ll have several Ad Sets all of which will target a different audience. The benefit of this is I can see how each audience group is performing in comparison to one another.
A campaign structure might look something like this:
In each ad set by defining my audience I can see the number of people within it and thus how much I’ll need to spend. My campaign spend will be the sum of all 4 ad sets.
I hope that provides you with a process to understand ad spend better. Of course, this is campaign specific and it doesn’t help you strategize how many campaigns you should run and how often.
If you need help on that front, drop us a line and let’s have a chat.