Facebook ads are a great tool for online marketers. But, how do you assess the best budget allocation for your Facebook ads? To assess your best budget, you must clarify your business goals. Is it all about the money, or the client-base? A normal marketing budget tends to range between 5 and 15% of the business budget. New entities that need to push their presence will veer towards the high end of the numbers. An older company, seeking to keep their growth rate even will probably go for a lesser number. Work on breaking down your costs to get the best understanding of how to use your dollars on Facebook. figure out numbers like cost per event and cost per conversion. When you have your numbers figured out, spread your funds around so as to not to put all your eggs into one marketing basket. The bulk of your funds should go into promoting your business, while less than half, but a still strong amount should go towards retargeting efforts. Give your choices some time and always make use of your analytical data for the best results.
- Make sure that you establish an advertising budget and you stick to it, as you don’t want to create debt for other areas of your company.
- Distribute your budget in three different areas, those being promotions, building your audience and retargeting.
- Make sure that you give your advertising enough time to work, as an ad campaign is not going to produce results overnight.
“Typically, a marketing budget for any business is 5%–12% of revenue. Newer companies may want to spend closer to 12% because they want to grow aggressively. But let’s say your company has been around for a while and you’ve got great revenue coming in. If you want to maintain or grow incrementally, your budget might be closer to 5%.”