How Much Should You Spend On Facebook ads in 2020
In my previous posts, I have talked about the two segments when it comes to increasing reach.
The first segment is Organic reach and second is Inorganic reach AKA paid ads.
Paid ads on social media platforms are an amazing way to get exponential reach within a short span of time provided that you have something valuable for your audience.
People who wanna increase their reach by using Facebook ads, often find it difficult to estimate a proper budget.
If you are gonna start doing Facebook ads or you have already started doing it I would like you to check out this conversation which I had with a Dermatologist at an event.
Transcript:
Digital Pratik - When more and more people will see me they will be having a brand recall.
So if that is the primary objective and if my primary objective, I'm thinking okay I will pour 10,000 rupees in that, so do that.
So any advertisement which you do, now the next question which might be coming into your head and I am sure you will ask me. I'll answer that right now, "how much should we spend on particular type of Ad" or "How much budget should we have". And the answer is as much as you can afford to lose.
Questioner - As long as you are having.
Digital Pratik - That also comes second sir. As much as you can afford to lose in the month of let's say March.
If I have Ad budget for my branding or maybe if I want to sell this kind of keynote where I paid XYZ amount.
If I want 5 keynotes notes like this and if I promote myself and if I am thinking ok fine I want 5 keynotes. Then I will pour 1 lac rupees.
But I can afford to lose 1 lac rupees this month in my branding ad.
Now, my focus would be all about ok fine nahi bhi hua toh koi nai chal.
But if you are trying to figure out a budget you will never be able to figure out a budget. why do you know?
Because Facebook is so huge, the less you do the less you will get, the more you do the more you will get. It is infinite.
So my answer to, what kind of budget you should have? As much as you can but also as much as you can afford to lose in that particular month or a quarter or whatever the budget annum is. All right.
I will take that question first sir.
I hope that the boost thing is satisfied.
Questioner - But a different question comes to mind whether it will really help us or will the engagement be just virtual?
Digital Pratik - I just told you, two different objectives.
No no no it does! If you're thinking of engagement it does.
So this is not like a crappy situation although it may seem magical. Especially after I showed you the targeting option. Which is just 10% which I have shown you. It seems magical but all this works.
Just imagine you're scrolling on Instagram watching somebody's stories and I was a sudden eye popup because you are at club o7 and in that Ad I am saying "Hi guys you were in club o7 now. I am going to come to club 07 once again. If you are in the vicinity let's meet up".
That is a contextual ad. It does works. It gives ROI. Alright.
But it depends on the objective. That is the difference here and if you go for manual placement then you can just select everything over here as well.
So the thing which I was telling that in the Instagram story I want to target you guys and just pop up inside an Instagram story, "hi guys you were now at club o7 now blah blah blah".
Instagram story swipe up hota hai so it is easy for people to come because it is easy to swipe up. Alright.
So right now in the advertisement as well Instagram story ad is underpriced what does it mean. Like if you take a plot in this vicinity v/s real estate plot on CG road the cost difference should be there. Alright.
Same way when I say underpriced. The cost of Instagram story ads giving you ROI is less compared to the ad which you will do on feed.
Alright.
So all these things come in and when I'm saying all these things you are going to straight away do that. Ki ha Pratik came and told the Instagram story was underpriced.
Fine, you do that and the feed. Because your feed might give you more ROI, we don't know.
So unless we test for any industry, any brand, because every, even if you all are dermatologists right now every single one of you will have a different strategy when it comes to campaign for the creation of the content.
The content which you will be creating will be different.
So jo context paida karta hai audience ke samne that would be different and the emotions which will get connected with the audience will be different.
I hope this article will make sense & would have helped you with a different perception around how much you should be spending on Facebook Ads.
P.S. Who am I & why you should listen to me?
I'm a 31-year-old, smiling dude, Virtual Digital Consultant listed as India's leading digital marketing & personal branding consultant, Social Media Influencer on TikTok, Instagram & Facebook, Keynote Speaker & a hardcore social media communicator. I can help you to be more effective with your branding & marketing strategy, optimize your workflows, and get more done. See my consulting options here >>>