2017 was the year that digital ads finally surpassed television ads with Google and Facebook taking up majority of this digital advertising market. So what should your budget be when it comes to these Facebook ads? Our digital marketing experts at Design Thinking have put together the below guide to help you determine the proper budget for your next Facebook advertisement.
The most common mistake people make when setting up a Facebook ad is they often ask, “What should the budget be?” prior to establishing goals. Really, it’s the goals that should help to determine your budget. Before you price anything out, ask yourself what your goals are for this Facebook ad. Do you want more followers? New email subscribers? Website referrals? App installations? Product sales? And these aren’t the only questions you need to ask yourself.
Current Facebook Presence
Starting from nothing and building up to 100,000 highly engaged fans who will buy from you is hard. It will help a lot if you already have an established presence on Facebook with fans that are ready to engage, click and buy. It’s important to remember that building a community, building a Facebook presence, does not happen overnight and that costs will be higher as that social identity is being built.
Consider Your Niche
If your company is part of an exciting industry such as entertainment, you have a huge advantage on social networks and can expect lower cost per conversions. On the flip side, companies that are considered to be less exciting such as law firms or insurance companies, may have a tougher time. Whatever your niche may be, it should be considered when setting your budget and should be adjusted accordingly.
Consider Your Product
If you’re trying to sell a product, there are many factors that will contribute to your success in selling it. Is your product a high dollar item? It is something people are unlikely to buy online? Are multiple steps needed to complete the purchase? These are all questions you need to consider when establishing a budget.
Consider Your Website
Does your website currently receive a solid amount of traffic? By having established traffic, you have a built-in audience to target. However, if there is no traffic and very little content on a poorly designed website, you are essentially sending people to a wasteland. Again, adjust your budget accordingly.
As you can see, determining the budget for your next Facebook advertisement involves a lot of factors and can greatly vary depending on the overall goal of your campaign. If you’re still unsure what budget should be put towards your future Facebook campaigns, contact us today and we will not only help you determine a budget, but we can walk you through the process, step-by-step. We can even set up and manage your campaigns for you, taking all of the stress off of your hands. Helping your business grow is what we do best. It’s what makes us who we are.