how much to spend on fb ads

Facebook Advertising Costs In 2023 | How Much Should You Spend in Facebook Ads?

All right, so how much do Facebook ads cost? This is a question that we get every single day as a Facebook ad agency, and I'll be honest, it's a little tricky and different for everyone, primarily because Facebook lets its advertisers choose their own budget. You can run ads for as much money as you want and for as long as you want, but still, how much money should you really be spending on Facebook ads?

Today, you're gonna find this out and so much more. Oh, hey everybody, my name is Sherman with Life Marketing, a digital marketing agency that helps small businesses grow. Today, I'm going to fully explain Facebook advertising costs to you and help you determine what's the best amount to invest into your Facebook advertising campaign. I mean, there's campaigns that we've ran where we've just spent four thousand dollars and generated over one hundred and thirty thousand dollars in revenue for our clients, but does that mean that you need to spend four thousand dollars in Facebook ads? Not exactly. So let's go ahead and break Facebook ad costs all the way down and then determine what works best for your business.

- Facebook lets its advertisers choose their own budget for ads.

- How much money should you really be spending on Facebook ads?

- Sherman with Life Marketing will explain Facebook advertising costs and help determine the best amount to invest in your Facebook advertising campaign.

Facebook Advertising Costs:

- How does Facebook ad costs work?

- You can buy Facebook ads on any budget.

- Facebook charges you to reach people on Facebook, referred to as cost per thousand impressions (CPM).

- CPMs vary based on the advertisement that's running.

- Facebook measures every ad shown for quality engagement and conversions, which rewards businesses with the most relevant ads with lower CPM costs.

- Audience size influences Facebook ad cost.

- The broader the audience, the lower the cost, and the more narrow the audience, the higher the cost.

- Facebook advertising costs might also vary based on competition.

Determining How Much to Spend on Facebook Advertising:

- The more you spend on Facebook advertising, the more people you will reach and ultimately, the better your chances are of increasing your business leads or revenue.

- Building a retargeting audience up is one of the most effective ways to generate sales from Facebook ads.

- Video content has lower CPM and conversion cost than other alternatives.

- How much your products or service costs can influence your Facebook advertising costs.

- In general, the more you spend on Facebook advertising, the better your chances are of increasing your business leads or revenue.

- Building a retargeting audience up is one of the most effective ways to generate sales from Facebook ads.

- Video content has lower CPM and conversion cost than other alternatives.

- Determine what works best for your business and invest accordingly.

How much should you spend on Facebook Ads? | Facebook Ads budget Tips You Should Know

As a Facebook marketer, one of the most common questions I get asked is how much should one spend on Facebook ads. In this video, I'll be addressing this question by sharing some tips and experiences that will help you get the best results from your Facebook ads.

Factors that Affect Facebook Ads Performance:

- Targeting: Ensure that you are targeting the right people to get the best results from your ads.

- Offer: A compelling offer can significantly increase the conversion rate of your ads.

- Quality of Image/Video: Use high-quality images or videos to ensure that your ads perform well.

- Copy: Craft a message that resonates with your target audience to motivate them to take action.

Budgeting:

Budgeting is a critical factor that affects the performance of your Facebook ads. When all other factors are in place, the next step is to consider the right budget for your ads. However, you should understand that the more budget you use, the more exposure your ads will get, and the better the results.

Recommended Budgets for Different Campaign Objectives:

- Sales Ad: Target a minimum of $75 per week, which is around 53,000 250 naira for seven days. Set your daily budget to at least 7,500 naira.

- Traffic Ad: Use a lower budget, such as $10 per day, which is around 4,000 naira or 3,000 naira per day.

Personal Experience:

- Start with a minimum of $5 per day and increase it based on your budget.

- Avoid using a daily budget of 500 naira, 700 naira, or 1,000 naira, as it may not yield the same results as higher budgets.

- Retargeting your custom audience can reduce your ad cost since those people are your customers.

To get the best results from your Facebook ads, you should consider targeting the right audience, using a compelling offer, high-quality images/videos, and the right message. When all other factors are in place, set your daily budget based on the recommended amounts for different campaign objectives. Remember to start with a minimum of $5 per day and increase it based on your budget.

How Much Should I Invest Into Facebook Ads For Shopify Dropshipping & Affiliate Marketing?

In this article, we will be discussing the question of what your ad budget should be when advertising on Facebook. We will walk you through the calculation of the 2x rule and how to use it to determine your maximum ad spend for your product. We will also discuss the importance of monitoring Facebook data to make informed decisions about your ad campaign.

Calculation of the 2x Rule:

- The 2x rule means that you spend only 2x of your gross profit on your ads.

- To calculate your gross profit, subtract the cost of goods, shipping, and processing fees from your revenue.

- Multiply your gross profit by 2 to determine your maximum ad spend.

- For example, if your gross profit is $43.70, your maximum ad spend would be $87.40.

Using Facebook Data:

- The cost per click (CPC), click-through rate (CTR), and cost per impression (CPM) are important metrics to monitor when running Facebook ads.

- These metrics, combined with your gross profit, can help you determine if your ad campaign is profitable.

- If your ads are not performing well, it may be necessary to pause or adjust your campaign.

By using the 2x rule and monitoring Facebook data, you can make informed decisions about your ad campaign and maximize your results. Remember to always calculate your gross profit and set a maximum ad spend to avoid overspending on your ads.

I Spent $1,000,000 On Facebook Ads (What I Learned)

In the last three years, I have spent over one million dollars on Facebook ads. In this article, I will share the four most important lessons I learned along the way. These lessons are things that I wish I knew before I started running Facebook ads, and if I had known them, I would have saved thousands of dollars in testing and found my first success much quicker. But first, let me show you some proof. This is my Facebook dashboard, and I have spent a lot of money on it.

Lesson 1: Your Strategy Doesn't Matter

There are so many different Facebook ad strategies out there, and many beginners get caught up in trying to decide which is the best one. If that's you, I hate to say it, but you are completely focusing on the wrong things. Out of all the Facebook strategies that exist, there's one thing that stays constant amongst all of them. I like to call it the big three, which are your product, your creative, and your offer.

- Your Product: There's simply no way that you can force a bad product to sell on Facebook. So, you need to find a great product that is already selling well on the platform. Try to find products that have been launched recently, so you can jump on the trend as it's happening.

- Your Creative: A great creative can save a mediocre product. Being able to create a high-quality video or photo ad for your product is the number one skill that you need to be a successful marketer on Facebook or any other platform.

- Your Offer: You need a good offer that allows you to profitably scale your product. You can do all kinds of stuff with offers like bundles, upsells, and subscription models.

Lesson 2: The Person That Can Spend the Most Will Always Win

The person that can profitably spend the most to get a customer will always win. So, find products with above a 25% profit margin, use upsells and bundles to massively increase your average order value, and use email and SMS marketing to get your existing customers to come back and buy again.

Lesson 3: Don't Try to Reinvent the Wheel

There's no need to reinvent the wheel when it comes to finding a great product. Look at what's already working on the platform and figure out how to do it better. Don't try to find the next big thing, instead find products that are somewhat evergreen and can sell for months or even years.

Lesson 4: Keep it Simple

Simplicity is key when it comes to running successful Facebook ads. Find a product that is simple, has a great creative, and a good offer. The Ocean Project is an excellent example of this. They sell simple jewelry, and with every sale, you can track a turtle and help save the oceans. Their creative is simple and straight to the point, and their offer is excellent.

In conclusion, the most important things you need to focus on to have success with Facebook ads are your product, your creative, and your offer. Don't try to reinvent the wheel, keep it simple, and always be willing to learn and adapt. By following these lessons, you'll be able to scale your product and outperform your competition.

How Much Should You Spend on Facebook Ads (FULL explanation)

Hey there! My name is Sydney and I'm a Facebook ads expert at Vertex Marketing Agency. Today, I want to help you answer the question: how much should you be spending on your Facebook ads per day or per month?

- Confusion around Facebook ads spending in 2022

- Goal: Provide considerations and ballpark figure for spending

- Tailored for e-commerce companies but can be applied to any industry

Considerations for Facebook ads spending:

1. Objective:

- Awareness stage (brand awareness, reach): minimum $5/day

- Consideration stage (engagement, traffic, app installs, video views): minimum $15-20/day

- Conversion stage (conversions, catalog sales, store visits): no set amount, dependent on budget and industry

2. Budget:

- Marketing budget should allocate 5-12% of monthly or annual revenue to advertising spend

- Example: $10,000/month revenue, 7% of monthly revenue = $700 advertising spend

3. Facebook ad budget calculator:

- Use for conversion objective

- Helps determine spending based on product cost, customer value, and willingness to pay for a new customer

- No exact answer for Facebook ads spending

- Consider objective, budget, and use of ad budget calculator

- Tailor for industry and experience level

- Subscribe to our YouTube channel for weekly Facebook ads content!

Facebook Ad Tips: How Much You Should Spend On Facebook Ads

How Much Should You Spend on Facebook Advertising?

As a business owner, it's important to know how much to spend on Facebook advertising. While there isn't a clear cut answer, there is a formula that any business can use to calculate exactly how much to allocate towards Facebook ads.

Approaching Your Facebook Budget:

The formula often heard for how much to allocate towards advertising is usually tied to the customer acquisition cost (CAC). But what if you don't have many or any customers yet? In this case, newer businesses may find it difficult to know how much to allocate towards Facebook ads. But, in the initial period, investing in Facebook ads will result in brand awareness and audience building before sales.

Minimum Budget for New Businesses:

Our agency recommends spending $600 a month for six months straight at a minimum to acquire Facebook specific data. This will show you how much of your audience is on Facebook, which demographics, interests, or behaviors within your target audience are most likely to convert, and start the traffic flow of fueling your advertising funnel.

Things to Note During Testing Period:

The lower the price of your product or service, the faster the testing process will go. Low-risk e-commerce businesses can start seeing sales quicker. If you have lower prices, it will take more sales to cover your expenses and make a profit.

Budget for Businesses with Existing Customer Data:

If you have existing customer lists of a thousand people or more, you can upload them into Facebook to retarget and create look-alike audiences out of them. These audiences produce conversions at a lower cost. Once you've got a pretty good rhythm going on Facebook, you can transition your testing budget to a formula-based budget.

Allocating a budget for initial Facebook advertising will not only lay a solid foundation for a profitable and sustainable outcome later but also show you how much of your audience is on Facebook, which demographics, interests, or behaviors within your target audience are most likely to convert, and start the traffic flow of fueling your advertising funnel.