The question I have been asked the most for a long time, it has been difficult to determine an exact figure until now…
As soon as I start a conversation with my clients to provide them with a campaign solution in Facebook Ads, the first thing they ask me is: How much should I spend on my ads?
I'll be honest with you, the answer depends on many factors.
Still, I will give you the answer that I consider to be closest to what you are looking for, its justification and the steps you should follow to start investing in Facebook Ads. So I advise you to read it all, it will be very valuable for you.
Now let's start with the reason why it is so complicated to answer this question.
Well, it's practically impossible to give an exact figure of how much you should invest in Facebook without knowing anything about your business.
I've never liked answering with another question, but sometimes I need my clients to understand how vague it can be without CONTEXT. Imagine if I asked you how much I should spend on a car each month. It's hard to answer, isn't it?
You don't know what my financial situation is where I live, my lifestyle, if I have a family, etc.
And although we all have a notion of the percentages we have to spend in each area of our lives, it still wouldn't be a concrete answer.
The same goes for how much you should spend on Facebook ads.
I don't know what you are offering, its price, the expected profit, whether your company is small or very large, etc.
These are factors that would give me more clarity about your objectives so I can tell you with certainty how much you should invest.
So, if you are already thinking about investing in Facebook Ads to attract sales for your business and thus avoid a lack of sales, we are on the right track. I will not leave you alone and I will give you everything you need so that you are happy with my answer.
If you have never invested in Facebook Ads, or have done so very occasionally, this is for you:
How much to invest in Facebook ads?
As advice invest at least $100 pesos a day, that means $3,040 pesos a month.
Per month? Yes, and I will explain it to you below…
You need to set an advertising budget for your Facebook ads
You're still here, which means you know what you want.
Since we were children, no one taught us how to undertake, and even if you have studied a career related to business, It is very likely that they have focused very little on teaching you how to bring sales to your business..
One of the main axes for obtaining sales is to assign a monthly budget where we will obtain prospects that over time become new clients, in this way your business will never suffer from a lack of sales.
Should you invest only in Facebook Ads?
It depends, as I told you, when understanding your core business there will surely be more channels where we can get clients, what is a fact is that today Facebook advertising is one of the ways cheaper and more effective to attract customers to your business.
But if you have already tried in a professional way and you are completely sure that Facebook Ads did not give you results, look for other forms of advertising where you use that budget. Be careful ONLY IF YOU HAVE NOT ACTUALLY OBTAINED RESULTS WITH PROFESSIONAL ADVERTISING.
If you don't have enough cash flow to budget for sales, I recommend you review what expenses you can cut.
And if you still can't get your business to have $3,000 pesos a month to invest in new clients, It is very likely that in reality “business is not business”.
Believe me, having a budget for new clients will mark a before and after in the life of the company, so the effort to obtain this budget will pay off.
Some of my clients have started investing $3,000 per month and Now they invest 10 times that amount, simply because they have generated profits to continue investing.
If you have a company that can play in bigger leagues, then you might want to keep reading…
How to calculate how much to invest in Facebook Ads'
Now let's get serious and look at real numbers for your business.
Let's take the following example as a basis
| Product name | Minisplits | |
| Sale price | $7000 mxn | |
| Desired utility | $3000 mxn | |
| Percentage to invest | 20% | |
| How many minisplits do you want to sell? | 20 | |
| Investment amount to sell 1 minisplit | 600 | |
| How much should I invest per month in advertising? | 12000 | |
| EXPECTED MONTHLY PROFIT | 48000 |
Important note:
The percentage you are going to use for your Facebook advertising depends entirely on how aggressive or conservative you want to be in your strategy to attract new clients.
For some, the percentage they should take from the profit may be 20%, but for others it will have to be 40%.
Have realistic expectations and keep in mind that if you sell something worth several thousand pesos, it will be very unlikely that you will attract customers by investing a few cents.
Last tip: start small
Even though digital marketing agencies tell you that to bring in more potential clients you need to invest more (duh!), that's not true.
We want potential customers, yes, but we want them at a good price, and a campaign that doesn't work with a small budget, also doesn't work with a large one.
Even if you have more money to invest, I recommend starting your campaigns with $100 to $200 pesos per day and once you find the winning campaign, gradually increase the budget (15% per day for example).
This way you will have the opportunity to optimize your campaigns and Facebook will make better use of your budget.
Conclusion
As you can see, it is not so easy to give you an exact figure. How much should you invest in Facebook Ads?, but I still didn't leave you hanging.
I gave you a figure to start with, but I also gave you the formula to know exactly how much you should invest according to your company.
My purpose with this article is to give you a clearer idea of what How much money should you start advertising on Facebook?.
I hope I have accomplished it, and if you have any questions, you know, you can leave them in the comments.
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