Facebook favours businesses that opt for paid reach over organic reach. Gone are the days where a business could rely on their organic reach to help get their company seen. It is a harsh reality, but the Facebook algorithm dictates what gets noticed, and the past year we’ve witnessed a definite shift towards video content – but more importantly, PAID REACH for business pages.
Here at Brandlective, we pride ourselves on years of experience offering PPC solutions to our clients. Our method works, and we know that managing expectations and efficiently preparation is key to launching an effective Facebook Advertising Campaign.
With this in mind, we want to help and will be using this blog to share advice regarding precisely what kind of budget you will need to put aside for Facebook Advertising, and how that advertising budget should be split. Here goes.
Firstly, gauge an idea of how much capital is available for your online advertising.
Your audience is set, your content is ready, and your copy is finalized – but you are still unsure on your budget. We advise BEFORE budgeting you work out how much your customer is worth. As a marketer, you should have some idea of the number of leads, enquiries or website visits you need to convert someone. If you have run ads before, you will know the average on how much you need to spend per conversion.
Here is a good example.
If you notice that out of every 200 conversions that sign up to your mailing list via Facebook, you can convert 10, and those 10 customers bring in £500 revenue per year each, you know that to run a profitable campaign that you need to spend less than £5000 to get 100 people to sign up via your Facebook ad.
However, if you do not have this data, Testing is KEY.
Start with a two-week test, but remember to focus first on CONVERSION campaigns to test your audience. We recommend those who are new to Facebook advertising, start with a £500 budget to test their audience and gain an idea of how much a lead, enquiry or purchase will cost. Following this test, you should go back to the drawing board, adjust copy and content if it needs optimising and then move forward with a monthly campaign.
Starting with a small budget is key to tailoring your FB advertising efforts. Once you reach a conversion cost that works for you, you can begin to start scaling it up. Once you have arrived at this figure, you can increase the spend when you want more leads and reduce it when you can no longer take anyone else on.
Some words of advice on how the Facebook ad budget should be spent…
While you should have a scaleable conversion budget, we would also actively encourage you to focus a proportion of your advertising budget on raising awareness of your Facebook page. We advise that half of the budget should be committed to conversions, a quarter to boosted fresh content, and the remaining quarter to an advert concerned with increasing page awareness.
This is a three-pronged approach, the conversion ads create revenue, the boosted posts increase your reach and help establish your authority in the industry, and the awareness campaign drives people toward your social media channels to promote an increased reach.