If you're having trouble locking down a budget for your next Facebook ad campaign, here are some simple budgeting steps that'll help you budget your Facebook ad spend based on your goals.
Finalizing Your Facebook Advertising Budget
Before moving ahead with the campaign, you need to understand the numbers related to your business's marketing and sales.
Generally, the marketing budget for any business is 5%–12% of revenue.
If you don't have a pre-decided marketing budget, you'd have to do some industry research to come up with these numbers.
Some of the metrics that you'll have to consider are:
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Cost per lead: Find the appropriate cost per lead for your business
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Cost per customer acquisition: You'll have to figure how much money you have to spend to acquire a new customer.
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Conversion rate: Spend time determining how many leads you need to get to make a sale.
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Cost per core event
Using this data, you'll be able to reverse-engineer the goal to determine how many leads you'll need, what that cost per core event will be, and how much you can spend to acquire one customer.
Distributing Your Facebook Ad Budget
Once you've decided on your Facebook advertising budget, the next step is to determine how you're going to spend it.
Following the standard practices, about 20% of your budget should go towards education, engagement, and audience-building.
60% of your budget should go towards promoting your offers or products and generating those conversions.
The remaining 20% can be dedicated to your retargeting efforts.
To maximize the impact of your Facebook ad budget, all three pieces of this puzzle need to work together.
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