By: Cameron Clarkson
A very common question people have when they are first getting started with Facebook ads is:
“How much should I spend?”
It’s a big question with no simple answer.
How much you spend on Facebook (or Instagram) ads largely depends on your business goals and your budget.
Here are, however, some key ideas to keep in mind no matter what your budget is or what your goals are.
1. Make sure your money matches your priorities
This is more of a life thing than a Facebook ads thing…but it definitely applies. Make sure your business goals and your advertising goals are in alignment. For example, if you want to get new customers or clients for 2021, dedicating a portion of your budget to targeting people who have never purchased from you before is a good strategy. If your goal is to launch a new product or offering so you want to leverage existing customers who already know and trust your brand, then dedicating ad spend to customer retention and retargeting campaigns are both good strategies to use.
2. Start small
Whether your budget is $300/mo or $100,000/mo, one of the most important strategies expert advertisers recommend is to start small. Small is relative, of course. If your ultimate goal for a budget is $10,000/day, then you don’t want to start at $100/day. The reason is, you need to scale incrementally so you don’t shock Facebook’s algorithm and throw all your results off. I recommend scaling your ad spend no more than 20% per day. So, keep that pace in mind when you set an initial budget.
3. Spend as much as you can
This might seem like a contradiction to my last point, but while you are starting small, you should also be spending as much as you can. The reason is simple: Facebook is powered by data. The more data you feed it, the better it gets at providing results for you. The balancing act of budgeting is starting high enough to allow yourself and Facebook to gather enough information to make meaningful decisions. Facebook ads are performance based, if your ad does not yield results in the first few days that it runs, Facebook will assume it is of poor quality and it will show it to less people–not good if you are trying to reach as many people as possible in your target audience.
No matter what your business goals or your budget are, make sure that they are working together. If you want new customers, make sure there is budget allocated for that purpose etc. Lastly, make sure to begin your campaigns with budgets small enough for you and Facebook to have runway to gather information, but large enough to gather sufficient information to make meaningful decisions early on.
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