Often many online marketers spend very little amount and as a result, end up missing their conversion. Also, a few marketers may spend too much and soon they find that their total marketing budget gets exhausted without any significant gain. So, what should a Facebook marketer do?
One easy solution can be hiring an expert service for FaceBook marketing Perth that is offered by Australian Internet Advertising, who has good experience in helping his client to achieve success in the online marketing campaign.
How to establish your budget for Facebook advertising
To determine your Facebook advertising budget, the first step will be to understand the actual numbers related to the sales and marketing of your business. For majority of clients, the only goal is to create revenue, which means they are only focused on getting more leads to make sales.
A marketing budget typically for any business is about 5% to 12% of revenue. A few newer companies may go a little closer to 12%, as they want to grow more aggressively.
However, let us say your company is running for around a few years and you also have got great earning coming in. Now, if you like to maintain the same level or want to grow incrementally, then your budget may go closer to 5%.
Take another scenario, where your business may be brand-new or you have never spent any money on your marketing. Perhaps, you have focused your marketing only based on referrals or word of mouth. In such a case, you will have to seek out additional information.
The very first place where you will find this information will be through industry research. You can find plenty of information online and also from industry organizations about the business figure.
Also, you can reach out to various people in your own field to search out what they are doing to have a good idea in which direction or where you should go.
Now let us discuss those important numbers that you must find.
- Cost per lead
Find out what is the right cost per lead meant for your business? Getting a lead does not mean a sale but that is what you will need to get prior to making any sale.
- Cost for any core event
One of the most important numbers to focus on will be your cost required per core event. For example, if you are in a business that will need a conversation before you sell your product or service, you can put a certain number on what it is possible for you to profitably spend for that important event.
When you will start advertising on Facebook, then you will find that your lowest cost per lead for an ad campaign may not produce you the lowest cost/core event. In case you sell any low-cost product or service, then you need to figure out your maximum amount that you can spend to be profitable.
If you are selling a high-value item, then it is very similar, however, you have got a little more room as long as the conversion rates of yours are good and acceptable.
- Cost per customer acquisition
Also, you have to determine what your strong cost/customer acquisition for your business is. What amount of money do you need to spend for acquiring this new customer?
This number again varies from business to business. In case, you have many different products and services, then your cost/customer acquisition will differ for those different types of products and services.
- The rate of conversion
Also, just look at the conversion rates too. Whether you have got a sales team or any team selling something online directly, decide how many leads will you need for getting on your phone or get them to an appointment for making that sale.
Often people ask about the magic number that is in terms of the amount to spend for the ad, but ultimately, it is heavily based on your goals and expectations. If your business is totally new and you aim to grow to $100,000 within the next couple of months, that is a clear goal.
By using the past industry data, also you can reverse-engineer your goal to find how many leads you may need, at what cost/core event, and how much you may spend to acquire a single customer.
