How much you spend on your Facebook ads comes down to your strategy and your market. Starting off, check your estimated audience size in the AD SET level of your campaign. This will be on the right hand side, approximately half way down the page.
In your initial testing phase, we recommend a starting budget of $1/day per 10,000 customers with a minimum spend of $5. I don’t want to pry into your finances, but I’ll presume if you’re reading this you’ve less money than Mark Zuckerberg. So we want to give him the least amount for the most return.
This is a steady-stream strategy, and in most markets will provide you with a regular flow of leads at a reasonable cost ($15-20/lead is standard in the fitness industry.)
In some markets, this is insufficient to get your ads into a good position. The earlier someone sees an ad in their browsing – users spend on average 2 minutes and 44 seconds browsing each session (source) – the more likely they are to engage with it. If you notice your CTR is well below 1% you may need to spend $2/day per 10,000 customers .
You can creep your budget up every 2-4 weeks by 50% or no more than $5/day per 10,000 until you notice your lead cost go up. Check out the Frequency number recommendation below to spot this early.
The other strategy is the domination-strategy. Think of it like bullying other poker plays off the table each hand. If you spend $2-4/day per 10,000 customers, or between $25-50/day, your ad is most likely going to be on top and beat your competitors. The drawback? You’ll most likely spend 2-3x more per lead than you will on the steady stream strategy. This means your lead nurture and sales process better be dialled in to make a positive return on your investment.
With a domination strategy keep an eye on your Frequency. If this number gets high (above 3) your lead cost is likely to rise because you’re potentially over saturating your market.
TL/DR
- Start with $1/day per 10,000 people in your audience
- Increase to $2/day per 10,000 people if no leads or low CTR.
- Increase by 50% or $5/day MAX once every 2-4 weeks.
- Use a domination strategy only when your message and lead nurture campaigns are dialled in.
- Continue to test. All marketing is testing