A Beginner's Guide to Facebook Advertising - Determining Your Facebook Advertising Budget [4 of 7]
Part 4 of 7 - Determining Your Facebook Advertising Budget [Series]
In the first part of this series, you may remember us discussing the affordability Facebook offers businesses. In fact, that is one of the many reasons Facebook advertising has become so successful. Any budget can be supported, but how far can your budget take you?
Before you define your budget for your Facebook Advertising you need to ask yourself a series of questions. Lay out your goals for your advertisement - this is highlighted briefly in the “creating a Facebook Ad” process.
- How big is your Facebook following?
- What are your verticals?
- What is your product/service?
- What is your time frame?
Your advertising budget will likely vary depending on your answers to each of these questions and the selections that you indicate as your preferences when you set up your advertisement.
Before deciding on a budget you’ll want to review some of the Facebook terminology to ensure you are getting the best for your buck. Once you have a pretty good understanding of the lingo, you’ll be ready to set up a mock ad and determine your budget- given your indicated preferences. From there you can decide how you will need to tweak your audience, and/or budget to either reach the amount of people you’d like to reach or stay, within your desired budget.
Determining your Ad Budget
There are two types of budgets, daily and lifetime. As you play around with each you will see on the right as your “estimated reach” either increases or decreases. Regardless, Facebook will make sure that your Ad is reaching the audience you have specified. (Have we mentioned the incredible targeting parameters?)
- Daily Budget - Your ad will pause when the daily budget is spent, and then the ad will resume when the budget resets the next day.
- Lifetime Budget - Your ad will run continuously until your budget is spent, or you can select start and end dates.
As you make changes to your budget your estimated daily reach will change respectively.
Automatically Facebook will optimize your ad to reach the optimal target audience within your given parameters, however, they also give page administrators the option to manually set optimization parameters.
Because Facebook is designed to be a social network, Facebook limits the number of ads people see on their timelines. Once you submit your advertisement Facebook submits it into an auction. Facebook will then bid on your behalf, unless you choose to place your own bid! You are more likely to reach the best audience if you allow Facebook to bid for you, rather than trying to guess the right amount and hope to reach an audience. Additionally, Facebook ensures that the people who will see your ad are those that are likely to move forward and take action.
If you’d like to make changes to the budget at any point while your ad is running, you can simply go to your ad manager and adjust.
If you need help determining the best budget for your ad, or would like us to create your Facebook advertisements head over to JoomConnect today.
This is the fourth of a seven-part series. Read the rest of the series by clicking this tag: Facebook Ad Guide. If you’d like to learn more about advertising on Facebook keep an eye on our blog or sign up for our newsletter!
Interested in advertising on Facebook but you can’t find the time to manage your ads? Contact us today.