How To Fully Utilize Your Facebook Advertising Budget

how-to-fully-utilize-your-facebook-advertising-budget

Facebook is the world’s social network, it has 2.80 billion active users monthly, and 1.84 billion users visit the social site daily. These statistics show how Facebook advertising is crucial to connect with the target audience. 

The main objective of running Facebook ads is to get the message to the right audience that is most likely to convert to potential customers. Understanding different Facebook Ad types and the existing target options are essential to attain the intended results.

Businesses of any size can leverage the robust platform to generate demand on a small budget. Facebook ads are affordable, customized precisely for the target audience, and scheduled appropriately to reach the intended audience. 

You can boost your brand awareness by increasing your audience followers and daily reach with a Facebook media business account on social platforms. You can also drive traffic to your site for a particular service, product, or promotion. Facebook Ads can target local, regional, and global audiences.s

Types Of Facebook Ads

1. Image ads

Facebook Newsfeed is constantly updated with status updates, photos, and ads from friends, pages, and groups. You can consider using an image format in the Facebook News Feed to promote your product, service, or brand.

Ensure to choose an eye-catching image to attract the audience’s attention and showcase an upbeat brand personality.

2. Video ads

Digital marketers can use video ads to capture your audience’s attention quickly and show the unique features of your products, services or tell your brand’s story. You can create video ads in Ad’s manager that run on Facebook accounts. 

To start with;

Your Facebook video ads need not only be filmed video footage. Consider using GIF-like graphics or other animations to capture the attention of the audience. 

3. Stories Ads

The recent development allows you to include Facebook Stories as an additional placement to Newsfeed. Facebook stories ads boost audience reach and brand awareness, increase video views, conversion rates, and enhance lead generation

This survey indicates that 62% of online consumers claimed they become interested in a brand product after seeing it in a story, proving compelling stories.

4. Poll Ads

Poll ads are a mobile-only Facebook ad format that incorporates an interactive component by adding a two-option poll to an image or video ad. These link poles can be separated depending on your preference. 

For effectiveness, consider uploading a supported file format and check the minimum aspect ratio for each poll placement. 

5. Slideshow Ads

Slideshow ads provide an easy way to create short video ads from a collection of photos, texts, existing video clips. They present an eye-catching motion and the easiest way to draw the attention of the audience. 

Using Ad Manager, you can build your ad and add text and music. 

6. Carousel Ads

This type of ad uses up to 10 images or videos to demonstrate your product’s features or services. You can utilize this format to highlight the different benefits of one product. Each image and video have a link that serves as a call to action, such as “Shop Now” directly to the sales page.

Now that we know different ads, here are a few factors to consider while selecting suitable Facebook ads suitable for your business.

Determine your Facebook Advertising budget

You need to determine your Facebook advertisement budget to understand the metrics related to the Facebook marketing and sales of your business. The main objective of any brand is to generate leads and increase revenue. 

A marketing budget for any business is between 5% -12% of the total revenue. To maintain an incremental growth business, consider a budget closer to 5%. 

Here are the essential metrics to consider:

Cost per lead metric measures the cost-effectiveness of your Facebook campaigns when it comes to generating new leads. It closely relates to other key business metrics such as the cost of acquiring new customers and provides data to calculate the return on marketing investment. 

In addition, Facebook marketers can use CPL to monitor individual campaigns such as AdWords, banner ads, social ads, and the total of your marketing efforts.  

This metric determines how much is spent on each audience who responded to your Facebook event. Every Facebook event is promoted with brands’ perfectly devised ad campaigns while incorporating a timeline and maximum budget estimated to be spent. 

You can calculate this metric by dividing the total amount paid by the number of event responses. 

Customer acquisition cost (CAC) is the cost of acquiring a new customer, i.e., the resources and costs used to receive an additional customer. It is commonly used alongside the customer lifetime value (LTV) metric to determine the value acquired by a new customer. 

CAC metric is beneficial in improving the return of investment for your business and understanding the company to analyze the value per customer and increase its profit margins.

Conversion rates refer to the number of conversions divided by the total number of visitors. It can also mean the number of users that have taken the desired action on your page; this includes purchasing an item or subscribing to an upcoming webinar.

Monitoring conversion rates allows you to determine the performance of your Facebook campaigns and identify areas that need improvement.  

The click-through rate metric indicates how creative the Facebook ad is and its engagement to the target audience. 

Facebook considers two metrics:

Link Click-Through: the total link clicks by users who viewed the Facebook advert. 

CTR(All): the total users who have interacted with your ad by commenting, liking, going through the carousel, or clicking on the link.

Define Your Sales Goal

While setting up a Facebook ad budget, you need to establish how much revenue you want to generate from your Facebook promoted campaigns in the next 30days.

Once you identify the revenue goal, calculate the number of units you need to sell, this can be calculated by dividing total revenue by the average cost.

Units to sell = Revenue goal ÷ Cost of offer

Determine How Many Leads You Need from Your Facebook Ads

After identifying your sales goals, the next step is to calculate how many leads you need to acquire from the Facebook ads. You can achieve this by calculating earnings per lead (EPL) or earnings per click (EPC).

EPL refers to the amount of revenue earned divide by the number of leads used to generate that revenue. In comparison, EPC refers to the total revenue gained divided by the number of clicks used to earn that revenue.

To determine your EPL or EPC, consider your purchase conversion value and the number of leads or clicks.

Earning per lead or click = conversion value ÷ total leads (or clicks).

Adjust Your Facebook Ad Cost

After determining your Facebook ad budget, it is easier for you to adjust numbers to settle for a budget that aligns with your digital marketing goal.

You can change the Facebook Ad budget by following the steps below:

Distribute Your Facebook Ad Spend

Once you have set a monthly budget, do a proper distribution based on the Facebook ads you are looking forward to implementing. For example, you can set a 30% budget on the ads to inform, engage and build an audience. And another 20% to advertisements that are lead generation-focused. 

Ensure you target an audience that you can leverage on long-term so that there is long-term revenue generation for your business.

Here is how to run a Facebook Ad effectively.

For starters, you need to identify that target audience for your Ad campaign. You can achieve this by developing a buyer persona. Which will help you boost your brand awareness, create and promote content that will attract potential leads.

Your main advertising objective should be to generate content that your target audience can relate with and which they can use to gain valuable information that they can use to solve challenges. 

An effective Facebook Ad has two elements; the Ad creativity and the ad title. 

To ensure that your Ad generates more leads, include a clear title that tells what the ad’s purpose is about and includes relevant, explicit images or video. Visual content is more engaging and tends to have high conversion rates. 

Once you have published your ad post, consider applying a small spend to promote it to your audience. Ensure that the Ad has no errors, is engaging enough, and has compelling content. Then click “boost” to open the ads editor, create a new, somewhat limited audience or use a saved audience; this will depend on your preference.

You can now set your budget and slowly begin to grow your audience, ensuring to generate data that will assist you in making better-informed decisions on the type of content or Facebook Ads that are working and those that need improvements. 

Learn how to boost your posts here

Define What Works for Your Marketing Strategy

Determining how your Facebook ads are performing against other similar businesses can assist you in scaling costs and budgets since different industries have varying coats and return on investments over time.

Data compiled by WordStream denied industry-specific benchmarks to assist in evaluating Facebook Ads performance. The data includes. 

Spend Up To $5 Per Facebook Ad Campaign

Facebook requires $1.00 daily for advertising. The best practice is to choose a Lifetime budget for each ad promotion that will assist you to cut down on costs. A lifetime budget allows you to set a maximum custom ad spend. 

To begin, set your budget between $1.00 – $3.50 daily on your first Facebook campaigns. Through this strategy, you can determine what ads are most effective and adjust future ad spend accordingly.

Keep it simple 

Ensure you create and maintain high-quality Facebook ads by making it easy for your audience to understand your business and its solutions. Put in the effort to understand your target audience’s voice and style, then align your ad campaigns to your marketing goals.

Consider scaling your ads advertising budget depending on leads acquired over time and sales goals.

Here is how to boost a Facebook post to reach a wider audience with just a few clicks:

  1. Head over to your Facebook page. If you haven’t set up one yet, learn how-to here. 
  2. Go to the post you want to promote and click the blue Boost Post button below the post. 
  3. Select the goal for your boosted post. 
  4. Choose a call to action.
  5. Select your target audience for the post.
  6. Select the duration and timing of the post. 
  7. Using the slider, set the budget.
  8. Select the ad placement and your payment method.
  9. Examine your ad preview and estimated results.

Finally, let’s explore some of Facebook’s advertising mistakes that you should avoid.

  1. Giving the Facebook ads too little time.
  2. Not spending enough. The size of your target audience and your product cost dictate what to expect in terms of the expenses per lead. 
  3. Choosing the wrong type of Facebook ad.
  4. Not comprehending and analyzing the Facebook Ads manager data correctly.

Conclusion

To utilize your Facebook budget, digital marketers must identify their metrics and goals, business conversion data, and industry. To determine and make better decisions on distributing the funding for ads to build an audience, create promotions, retarget and boost conversion rate.

 

Ensure to leverage existing social media management tools to manage your Facebook page alongside all social media accounts. You can create and schedule Facebook ads, engage your followers, monitor relevant conversations, and measure and improve your ad’s performance on a single dashboard. 

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