How Much Should You Spend on Facebook Ads?
My common sense advice for your budget.
How long is a piece of string? That’s the question that makes people scared of starting with Facebook Ads. Where will it end? What will I get for my money? How many leads? How many sales? If there is someone definitively telling you what the results will be as they try to win your business then buyer beware. I’ll share with you the common sense advice I give to my clients.
First of all you need to understand that you are making an investment that will help you reach you reach your business objective, typically that will be raising brand awareness, growing your mailing list or generating leads or sales. Your money will also be allowing you to accrue data that means you can retarget the people most interested in what you have to offer.
But how much do you need to spend? The truth is you can spend very little, but only in certain circumstances, for example if you are a local business targeting a small geographical area then a few pounds a day can make a real impact.
Businesses looking to sell to a large audience should have a monthly ad budget of £600 as a minimum, that’s assuming that it’s a simple ask and a short customer journey to the sale. If you have multiple audiences, a high ticket product and need to create a sales funnel then you need to have £1000 per month as a minimum. Businesses running high-performing funnels to generate leads or sales are usually spending several thousand pounds a month or more.
But when will you know what results you are going to get? You simply can’t know in advance, you will know what results you get once the investment has been made and the ads are running. Once you have a baseline set of results to look at a good facebook ads manager will keep refining and validating their campaigns to get better results. After a period of testing the objectives, the copy, the creative and all the other moving parts that make up a Facebook ad you will get an accurate number for your cost per lead, or sale.
If you would like advice on how to outsource or get started with Facebook and Instagram ads then get in touch and we can have a chat.