to maximize your Facebook and Instagram marketing budget for maximum results

Do you know how much to spend on your Instagram and Facebook ads?

Different people have different ideas about what a budget for advertising means. There’s no way to give a universal answer.

This article will explain how to budget for Facebook and Instagram ads, how to create your budget within the Ad Manager, and what settings are most important to your results.

Budgeting for Facebook and Instagram ads: What to consider

When it comes to ad spending, there are several factors that come into play.

What is the overall budget you have for Facebook advertising compared to other marketing efforts?

Some business owners don’t know what percentage of marketing budget they should allocate to Facebook or Instagram.

You will need to track the results of your campaign in order to make sure it is profitable.

If you’re new to Facebook advertising, I suggest that you start slowly to establish a baseline.

What is the best amount of money to spend on certain initiatives or segments in your funnel?

This will depend on your experience, tracking and business model.

I usually suggest that:

• Lead generation consumes 60-70% your budget.
• Spend 10% of your budget on the top of the funnel, or brand-building advertising.
• Retargeting ads can increase sales by 20-30%.

This is a guideline that will vary for different industries, such as ecommerce.

How can you maximize the Facebook budget settings?

Facebook offers a number of confusing settings, such as the campaign budget optimization (formerly known as campaign budget) and the daily budget vs. life-time budget.

What to do with your Facebook and Instagram marketing budget

Calculate your cost to make your Facebook or Instagram ads profitable if you’re new to Facebook or Instagram ads.

Make some assumptions about general performance ranges based on the cost of your product and how you will sell it. Increase your advertising budgets gradually to test these assumptions.

You can sell your $1,000 product at the end if, for example, you offer a free webinar with great content.

You can earn $10,000 if you convert ten of 100 people who register through Facebook ads.

Calculate the cost of 100 registrations for a webinar.

If you assume that you will be investing $1,000, then you can expect to pay $10 per registration, giving you 100 leads.

You can calculate your gross and net revenue if 10% of these leads purchase the product.

Sales conversion rates are typically between 2% and 10%. However, this depends on a number of factors, including the price, the effectiveness or sales page, as well as other factors.

You can test out your assumptions by starting slowly. In this example, even if you sold just one product, you’d break even.

Setting your Facebook advertising budget

Set your campaign budget using the Ad Set level, rather than the Budget for Advantage Campaign option.

It’s best to control the budgets of each audience separately during the testing phase to make sure your results are meaningful.

Facebook’s Advantage Campaign Budget means it will spread the budget over all the ad units and ads in the campaign.

The algorithm may not be able to deliver all of the budgets you have requested to the audience that you are testing.

Budgets can be set to a minimum, but it is better to do this during the testing phase rather than in the scaling phase.

Select Next after ensuring that the Advantage campaign budget has been turned off.

You can choose to use Daily budget, or lifetime budget.

I choose daily budgets because they allow for an open-ended campaign that is easy to scale.

If you know the end date of your campaign and don’t plan to run it beyond that date, choose lifetime budget.

The Lifetime Budget also offers ad scheduling, which allows you to control when the ads will be shown.

This is an option that is useful for those who want to answer leads during working hours or are trying to get calls during office hours.

Placements is the next section on the level of ad sets.

You must create different ad sets per placement if you want to manage your Facebook and Instagram budgets separately.

Facebook would then unevenly allocate the budget to the two platforms.

Select Manual Placements to only select that platform. Create a new set of ads with the other platform selected.

It is a good idea to test the platform and then scale it up if you find that it works well.

The Optimization and delivery setting is another budgeting optimization option to be aware of at the level of the ad sets.

Cost-per-result goal is a great option for controlling your costs. If you set it to a low number, your ads won’t be delivered.

Facebook will only display ads to those who may reach the “cap” that you set.

If you’re a beginner, just leave Cost Per Result Goal blank. For more advanced users, test this setting once you’ve determined the average cost per result of your campaign.

Create your ad at the same level as an ad and launch your campaign.

Duplicate your ad set to create new tests, with different audiences or placements.

You can monitor your results at the level of the ad sets to determine which audience gives you the best results.

Facebook Advantage campaign budget optimization

You can increase your daily budget by increasing the budget for the ad sets or the campaign budget.

It is best to start with a campaign that has similar-sized audiences and then gradually increase the budget. For best results, use 3-4 campaigns and 2-4 ads.

Meta Advertising: Get the Most Out of Your Meta Advertising

Budgeting for Facebook and Instagram campaigns is not a one-size fits all approach.

Calculation and experience are required to determine what works. It’s worth it when you see a high return on your ad spending.

The article How much to spend on Facebook and Instagram ads for maximum results first appeared on Search Engine land.