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.

  1. 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;

    • You can create video ads with multiple objectives. For instance, it’s recommended that you use the Video Views objective to reach the most likely audience to watch the video. 
    • Use a supported file format to ensure that your video meets the required minimum specifications to deliver optimally and effectively.
    • Create videos ads in the Facebook Ads Manager. You can also boost a video post from the Facebook page. 

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. 

  1.  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.

  1.  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. 

  1.  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. 

  1.  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

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.  

  • Cost Per Core Event

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. 

  • Cost Per Customer Acquisition

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 Rate

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.  

  • Click-Through Rate

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.

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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:

  • Go to Ads Manager.
  • Head over to the ad set campaign that needs editing. (Change your campaign budget if you are using campaign budget optimization. Else, change your ad set budget).
  • Click Edit.
  • Change your budget.
  • Click publish and close.

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.

  • Identify your Facebook target audience.

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. 

  • Curate An Effective Ad

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

  • Boost Your Post

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. 

  • Average Click-Through Rate (CTR.
  • Average Cost per Click (CPC).
  • Average Conversion Rate (CVR).
  • Average Cost per Action (CPA).

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.

2 Common Mistake You Should Avoid in Facebook Ads

Despite your best efforts, you get little to no return on your Facebook ad campaign investment. The impression I’m getting is that you’ve just wasted your advertising money.

  1. There Are No Clearly Defined Goals

A marketing campaign’s first stage is to have an attainable goal and a well-thought-out plan in place. In order to come up with the best approach, you need to know what you want to accomplish.

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Using Facebook Ads may be used to accomplish one of the following goals:

    • Does your website need more traffic?
    • Do you want to boost conversions or funnel more traffic to a certain landing page?
    • Would one-time marketing for a single product result in quick sales?

Knowing your campaign’s goals before you begin can allow you to assess whether or not you’re having the desired effect. If things don’t go according to plan, you have the option of halting or changing the parameters of your campaign rather than squandering your money.

How to Set and Achieve Business Objectives

Stakeholders are more likely to agree on attainable goals when they’re involved in the process of setting those goals.

    • Make a strategy of action.
    • Goal-setting should be accompanied by the creation of an action plan or strategic plan. Make sure you have a strategy in place for how you intend to attain your goals, not simply a list of them.
    • Create Key Performance Indicators (KPIs).
    • Keeping a close eye on the campaign’s key performance metrics will help you fine-tune it for maximum profitability.
    • Set goals that are in line with your existing situation.

It’s critical that you focus on the short-term demands of your company while creating goals. Setting objectives is one thing, but setting the appropriate goals is another!

The following are some of the most typical marketing objectives:

    • Increased awareness of the brand
    • Increased participation in the community
    • Sales and lead generation have risen.
    • Web traffic has increased as a result
    • Making your hiring procedure more efficient
  1. Targeting the Wrong Audience

Because Facebook has so many users, your post may be lost in the sea of information that is constantly being added to the site.

Facebook users post 510,000 comments, 136,000 photographs, and 293,000 status updates per minute, according to reports.

The same audience you’re trying to reach is also being targeted by the over 50 million business pages on Facebook.

It is easy to see how difficult it will be to reach your target audience with your content when you consider how popular this social media site has become. You’d be up against not just other marketers, but also the friends, family, and co-workers of your target demographic who use the site.

Another blunder made by most marketers when deciding on their target demographic is being either too broad or too limited in their scope.

When producing your ad, be careful to select the size of your target audience to prevent making this error.

It’s best to target a realistic number of individuals who are likely to convert and show interest in your goods rather than aiming for ads that may potentially reach millions of people. The demographic and user interest parameters can be used to reduce its size.

On the other side, Facebook may not distribute your ad if your audience size is too tiny. You can see if you’re doing it properly on Facebook’s dial.

In addition to increasing your chances of success, a well-targeted audience will also minimise your advertising expenditures. A lookalike audience may also be created when starting a new ad campaign. 

Using a lookalike audience, you’d be able to target people who behave in similar ways to your target demographic. You may create a lookalike audience of fresh prospects who display similar characteristics based on a list of consumers who interact with your content or have made purchases in the past.

It’s clear from the data that if you don’t correctly target your audience, your adverts will get lost in the sea of information.

Make sure that your content is entertaining, interactive, and has an appealing selling point before you can do this. If you don’t know who you’re targeting, you won’t be able to create any leads from your advertising efforts.


What To Expect In 2022 With Regard To Facebook Ads Manager Upgrades

Facebook’s Ads Manager is constantly being updated, sometimes even within the span of a few hours. The platform must continually evolve and alter in order to meet the needs of both users and advertising.

It might be difficult to keep up with everything. In order to save you time, we’ve done the investigation for you. In this post, you’ll discover the most important and recent changes to Facebook Ads Manager that every marketer should be aware of.

  1. New “Text per person” Optimisation Feature

With the introduction of a new feature in June 2021, Facebook Ads Manager introduced a new ad setup method. Automatic ad personalization is made easier with this feature, dubbed “Optimize Text Per Person.”

Do you know what Google Ads are?

Then you should be aware that this ad option is remarkably comparable to Google’s well-known Responsive Search Ads option. Everything is automated and tested with Google’s new functionality.

Using Facebook’s “Optimize Text Per Person” tool, your advertisements’ captions, headlines, and descriptions are automatically rotated. Users are shown a variety of options based on Facebook’s machine learning.

So, for example, if your headline reads, “New Year bargain,” and your description reads, “Take advantage of our holiday merchandise discounts.” Some people may see the description appear first because of an algorithmic decision by Facebook.

What’s the finest part of this feature?

It’s a breeze to put together. The “Optimize Text Per User” button may be found throughout the ad creation process. All you have to do is activate it.

In 2019, Facebook announced a tool dubbed “many text variations for ad copy,” which was comparable to this new function. Multiple ad text lines were required from advertisers, and Facebook would select the best ones.

The current iteration resembles the previous one in many ways. Exactly what’s the difference? It eliminates the need for the marketer to develop several copies of the same advertisement. 

An existing ad element is used to estimate the most likely user reaction instead of creating a new one.

  1. Instagram Reels Ads

Platforms like TikTok have thrived because of the growing popularity of short video snippets. Instagram, owned by Facebook, also chose to join in the fun.

As a result, in August 2020, Instagram launched its own Instagram Reels. Similar to TikTok’s function, this one work as well.

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Short-form videos can be shared in independent feeds using reels. Because of their brief length, they have a strong possibility of grabbing the attention of users.

get google ranking ad

As a result, Facebook recognised Reels’ ad revenue potential. Reels will be tested for advertising in certain countries around April 2021. (Including the US, the UK, France, and Canada).

It’s safe to say that the experiment was a complete success.

By the summer of 2021, all marketers across the world will be able to use Facebook’s Reels advertisements. International accounts that weren’t able to participate in the beta test were overjoyed by the addition.

Smaller ad accounts on Facebook are often subject to limitations imposed by the social media giant. This is not the case. You don’t have to meet any account criteria to make Reels advertising.

Do Reels appear in any particular places or ways that puzzle you?

As Instagram says, “Reels is the finest area on Instagram to reach people who don’t follow you and an expanding global stage where businesses and artists can be found by anybody.”

This is, of course, a PR ploy. Overall, Reels are a new method of reaching Instagram users with advertising. They will become more powerful as the Reels feature continues to evolve.

As a full-screen ad type, reels commercials appear in between conventional reels of content. Ads can be as long as 30 seconds, just like Reels. The content may be liked, commented on, watched, saved, and shared by the user.

  1. No More Interest-Based Marketing to Adolescents

Ads that target minors will no longer be allowed on Facebook as of August 2021. It’s not clear what this means. 

Users above the age of 18 in all countries may no longer make use of these targeting options. Advertisers may now only target people under the age of 18 by their age, geography, and gender.

What’s the reasoning behind this decision?

A private and secure experience for younger generations is a goal of Facebook, according to the social network. Advertisements for risky topics including excessive weight loss, online dating, and other forms of self-harm will no longer be shown to young people.

Facebook made this decision because they understand the influence that social media has on today’s youth. As a result, if you’re trying to reach a younger demographic, you’ll have fewer possibilities.

As a first step, you may want to focus on improving the quality and quantity of your advertising creatives. This strategy may assist you to surpass the challenges of targeting and developing new ways of reaching your target audience.

  1. The 20% Rule Is No Longer a Rule

In the world of Facebook advertising, the “20 per cent text on ad pictures” guideline is a well-known fact. If you’ve had similar feelings, you’re not alone.

This won’t be an issue anymore as of September 2020.

When advertising takes up more than 20% of a picture, Facebook no longer blocks them. If Facebook rejects your ad, there is no more work for you to perform.

In spite of this, Facebook continues to advocate following the 20 per cent guideline for the greatest results. As far as they’re concerned, these commercials perform better than ones with a lot of text.

Ready to reject the advice and stuff your adverts with text anyway? There’s a pause in the action here. Just to be sure, here’s something else to keep in mind:

Facebook won’t necessarily reject your ad outright. Even so, it may still limit the visibility of your advertisements. You can now get an “Image Text Rating” from Facebook Advertising Manager, which assigns your ads one of four grades: Okay, Low, Medium or High. Facebook will use this rating to decide how many people will see your ad.

  1. Automatic App Ads Can Bring in New Users to Your App

If you want to use Facebook to promote your app, you should be aware of the most recent change.

For example, Facebook’s Automated Apps Ads functionality makes it possible for app marketers in 2020 to run automated campaigns that are tuned for the best results. This is made possible by the application of AI learning.

Facebook has introduced automated App Ads, which are a step up from the usual Manual Ads.

Do They Vary In Any Way?

There is no limit to the number of ad packs and advertisements you can have in a single campaign using Manual App Ads. Manual testing of creatives and their combinations is also required.

Setting up automated app ads is a lot simpler. Ad sets and ads can only be used in one campaign at a time.

Additionally, you may use its imaginative testing tool to try out various unique combinations on the go. Up to fifty photographs or videos, together with five headlines and descriptions, are all that is required.

However, not everything is as perfect as it seems.

Automated App Ads’ most significant shortcoming is a lack of feature support. A wide range of demographics and interests can be targeted, such as age, gender, and demography. Only countries, languages, and operating systems may be targeted with this advertising.

Playable advertisements, carousel advertising, and Instant Experience ads are all formats that aren’t supported by them.

As a reminder, this feature is currently in development and is not yet ready for prime time. 

For the time being, an A/B test against your conventional app advertisements will be enough to see if your campaigns are a suitable fit for you. For both campaigns, use the same set-up (target country, creatives and optimization goal).


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

About the Author

Tom Koh

Tom is the CEO and Principal Consultant of MediaOne, a leading digital marketing agency. He has consulted for MNCs like Canon, Maybank, Capitaland, SingTel, ST Engineering, WWF, Cambridge University, as well as Government organisations like Enterprise Singapore, Ministry of Law, National Galleries, NTUC, e2i, SingHealth. His articles are published and referenced in CNA, Straits Times, MoneyFM, Financial Times, Yahoo! Finance, Hubspot, Zendesk, CIO Advisor.

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