What is a Good Budget for Facebook Ads?
Facebook is one of the most popular places for companies to advertise their products and services online, and it’s not hard to see why. It is the largest social media network in the world, with almost 3 billion active users every month. Thanks to its careful curating of its users likes, dislikes, and interactions, it has some of the most accurate and effective marketing algorithms online. It also offers a level of detail and precision for target specific demographics that few others can match. As a leading Facebook ad agency in London, we have seen the results of targeted ad campaigns on Facebooks with our own eyes, time and time again.
Like anything in life, advertising costs money and, while Facebook tends to offer low-priced advertising options for its users, the more you can spend, the more efficient returns you’re likely to receive. In this article, we’re going to discuss what a good budget for FB ads looks like.
Starting at the Bottom
You can advertise on Facebook with a budget as low as £1.00 per day and still get your advert seen by a large number of people. The cost per thousand impressions (that is, the number of people who will see your advert in their feed) can be as little as £5.00, which means that, even with a minimal advertising budget, you can get your advert seen by about 700 people a week (or around 2800 a month, if you prefer).
Upping the Curve
While 700 people seeing your Facebook ad each week might seem like a bargain for only £1.00 per day, in reality such a small investment in advertising is unlikely to yield great results. With average conversion rates for online advertising sitting between 2-4%, you’ll be lucky to get more than a couple of leads or sales per day. This is known as the learning phase, where you get to play about with the various audience and demographic options on your advert to see what clicks, without wasting too much money.
Ultimately you should be looking to pump enough money into your Facebook ad campaign to generate a satisfying number of leads for your business. While this might vary from company to company, Facebook itself needs to see about 50 sales or leads per week (so around 2500 impressions, all being well) before it starts feeding your advertising campaign into its own algorithms.
Advertising as a Percentage
The golden number for advertising is between 5-12% of your revenue. If you’re doing well and are looking to sustain your business model, then you can hedge your bets towards the lower end of that figure. If you’re starting out, it might be more advantageous to adopt a more aggressive advertising strategy, at least in the early days, and lean closer to the 12% range. The more you invest in your campaign, the more impressions you make, and the more conversions you can expect.
If you have a daily Facebook ads budget of £50 or more and want to make the most of your investment, contact a Facebook ad agency in London that you can trust. Get in touch with Disturb Digital today to see what we can do for you.