5 handy tips for marketers before creating a Facebook ads budget

Social Samosa shares 5 quick tips which marketers can use to set a Facebook ads budget that assures maximum RoI. 

Marketers are often confused on how much to spend on Facebook ads. The mistake which we often end up doing is, we think of a budget before setting a goal or an objective for running a Facebook ad campaign. Therefore, before you start with Facebook ads, ask yourself, why do you want to start one. Is it for increasing the brand awareness and reach, or it is with the intention to promote a special event. Once the goal is clear, it is easier to move ahead.

Social Samosa shares 5 quick tips which marketers can use to set a Facebook ads budget that assures maximum RoI. 

1. Create a budget for your campaign

Once you are clear as to why you need Facebook ads for your brand, it is very important to decide on the strategy to make your audience view the ads. Have a clear revenue goal in mind, so that you have something to measure your success against.

2. Your Facebook should have enough presence

If you already have an established Facebook presence, it becomes much easier engage with your fans, click and buy through the Facebook ads. However, if you don't have a good presence, then set realistic goals because establishing presence takes time, effort and cost.

3. Understand the niche of your company

For example, a lot of brands like those in the FMCG or entertainment space have a very active social space, so one can expect the costs per conversions to be lower. This may not be the same for those brands in sectors like insurance, you may need a higher budget allocation because targeting consumers is tough in these categories.

4. Understand your customer list

It is very important to understand the relevancy of the consumers being targeted, do they actually want to see the ad or not. The failure or success of Facebook ads to a large extent depends on the customer list.

5. Choose between daily budget and lifetime budget

There are two different types of budget - lifetime and daily. While daily budget for Facebook ads gives you less freedom and requires regular monitoring. In case of a lifetime budget, you can set a start and end date for the campaign, along with the budget, which you want to spend in that period of time. Brands, in order to achieve better results from their campaigns, should try for a life-time budget.

According to reports, one can expect to spend anywhere from $.50 to $1 per Facebook fan. It is not a standard rule and depends on numerous factors, including niche, brand recognition, established presence and country. Depending upon your total marketing budget, you can then take a call on how much to spend.

In fact, a lot of brands fail at Facebook ads because they start with a whimsical monthly budget and just end up running conversion ads to cold audiences. This strategy can only get you a bunch of meaningless likes that doesn't always translate to sales or often yields no conversions.

Make a precise and practical plan and decide your Facebook Ads Budget accordingly.