How to Set Up Your Ads Budget For The Best Results

Spending money on your ads, especially on Facebook/Meta has become more and more complicated over the years.

You’ve probably asked yourself these questions:

How much should I spend to get the best out of my money? Am I spending too much?

Am I spending too little?

You’re just not sure if you’re doing it correctly.

And if the answer is yes to any of those questions, you’re either losing money or you’re not reaching enough people.

In this article I’ll break down exactly how much you need to spend to get the BEST results for your business.

Unrealistic Investment

The WORST thing you can do is mindlessly dump money into your ads.

Don’t get me wrong, Facebook would love for you to do this - they love their revenue going up just as much as you do.

In fact they have their ads setup in a way where, as your budget increases, the amount of people viewing your ads also increases.

Which will POTENTIALLY improve your sales and then your revenue.

But this won’t ALWAYS happen, especially if you’re not aware of all the options Facebook has available to optimize your ads.

Many businesses actually end up investing more than the amount that is suitable for their current business operations because they think investing more means more sales.

To some extent, yes, this is true, but you have to set up your ads with proper targeting and a clear objective based on your business’s goals.

Because if not, the people who are seeing your ads aren’t people who need/want your product/service.

7 Determining Factors For The Best Ad Budget

I remember when I first saw the Facebook ads manager I genuinely got overwhelmed by the swarm of options I saw on my screen.

But now, after I’ve become more familiar with it, I’ve narrowed down the options. Setting up the budget is actually much more simple than we think.

We no longer need to be going through mini seizures every time the options pop up on our screen. Here are 7 factors you MUST consider before you look into any options on Facebook to make sure that get the BEST results:

- Business Goals: Your budget should align with your business objectives.

i.e. If you need more sales, you’re probably going to need a higher budget.

- Testing Phase: Start small so you can actually test what works and what doesn’t.

- Audience Size: The amount of people who see your ads needs to be sufficient.If it’s too little or too much, they’ll result in less sales.

- Ad Quality: Well-crafted ad content is more likely to engage users and generate results.

- Competition: Highly competitive industries may require a higher budget to stay competitive in the ad auctions.

- Frequency and Duration: This is SUPER important. If you can run ads continuously at a lower daily budget, it’ll be more cost-effective than sporadic, high-budget campaigns.

- ROI Tracking: Are you earning more than you invest? Closely monitor the return on investment (ROI) from Facebook ads. Adjust the budget based on the performance of previous campaigns, this way you’ll maximize results.

Ads Have A Bigger Potential On Your Business Than You May Think

This may sound easier said than done, BUT

If you can hone in on these 7 factors for your budget, your business will have a strong audience. The budget is like the backbone of your ads.

It NEEDS to be right. If not, everything else falls.

Your customers, then your revenue, then your staff, then your business, etc…

So make sure your budget is always being worked on and being improved.

If you don’t have the time to do all of this or need help with your ads and/or marketing, contact us today and we'll show you how we would do this for your business.