If you’ve been wondering this for a while, or ever looked it up you’ll get a lot of ‘how long is a piece of string’ answers. And while there is some truth to that, there are some guidelines and suggestions that will help you to work out how much you can spend, and how much you should spend.
Firstly, can you see Facebook results on $5 a day?
$5 a day is the minimum spend Facebook will actually allow you to spend per day, and while it is definitely on the smaller end of spends. You can still get results.
To get results on a $5 a day spend you have to take a different approach, with $5 you can’t do a lot of testing, so you really need to use content that works for your brand. Is it a post that went crazy on your Instagram or content similar to that email that made you a lot of money?
Alternatively, use your $5 and use a Facebook Lead form to get email sign-ups to your mailing list and focus on really improving the conversion rate of your emails!
You can see great results with even just $5 a day, you just have to be clever about how to use the spend.
A little while ago we had a client who just couldn’t afford more than $5-10 a day in ads, and while it took a little bit of testing, with the right strategy we were able to get them nearly a 16x Return on ad spend, so for every dollar they spent they got $16 back! This strategy was simply built around finding the right audience for their product and promoting their existing Instagram and Facebook posts – we all know that organic reach is struggling and this allowed their existing (AMAZING) content to reach new people and drove their sales!
What if you have $10-50 a day?
$10 to $50 a day is a great range for Facebook ads if you’re DIYing – it gives you some room to test, you can test different audiences (the most powerful thing to test in my book), different creative and different campaign styles. You can even start to build out a funnel – reach a new audience, nurturing your existing audience and some retargeting ads, especially as you get closer to the $50 a day mark.
To give you an idea, we have a client, who granted are spending a lot more money on their ads, however, one of their campaigns is a $10 a day campaign focused on growing their email list. You could easily run a similar campaign to your audience!
This one campaign spent just $10 a day, and was getting email sign ups for just 60c! If your email list is a big part of your sales, imagine what doubling, tripling or quadrupling your email list could do for your business?
$50 plus to spend on your Facebook Ads?
$500 plus to spend on ads?
- What is your target ROAS? Could you get a similar return on a smaller spend if you turned off some poor performers? Is your budget flexible enough to test new audiences to see if you can do better
- Keep an eye on that frequency score, making sure that your ads are being seen enough, but too often is also very important as this can often get overlooked in higher spend accounts?
- Do you know your true margins? It’s important you know how much money you’re making, so you know how much you can afford to spend. There are two trains of thought here. 1. Maximise profits on initial sales, here you make as much money on the front end of your purchases. 2. Maximise the quantity of sales, here you don’t mind making less money on the front end, as you know with the lifetime value of your customers will make you more money in the long run.
- Have you got the capabilities and functionality internally to scale? It’s all well and good to double your budgets and keep scaling, but make sure you can keep up internally and are still able to deliver the same quality. The last thing you want to do is to scale so quickly that your business diminishes because you can longer deliver the same quality and customer service.
So how much should YOU spend on Facebook and Instagram ads?
Want to learn how to run ads on a budget of less than $50 a day? Join the waitlist here: https://waitlist.brightredmarketing.com.au/
Ready for someone to take over for you? Book a free strategy session here: https://brightredmarketing.com.au/free-strategy-session/ and we can have a look through your ad account and let you know if and how we can help!