What Facebook budgets are and how they work
A budget is the amount of money you want to spend on showing people on Facebook your ads:
It’s also a cost control tool. It helps control your overall spend for an ad set (or campaign) the same way a bid strategy helps control your cost per result.
You can set your budget at the ad set or campaign level. Whichever level you choose, there are 2 types of budgets:
Daily budgets: The average amount you’re willing to spend on an ad set or campaign every day.
Lifetime budgets: The amount you’re willing to spend over the entire run-time of your ad set or campaign.
Say that your optimization event is website leads and you know that you make a $10 profit as long as the cost of a lead is $100 or less. You could set a high budget as long as you pair it with a bid cap or cost target of $100 or less. If you’re profiting from each lead, there’s probably no reason you wouldn’t want as many as possible. If you are fishing for leads you want the lowest clicks to website. We like to use $2.00 per click as a reasonably low cost per click.
It’s possible that Facebook will saturate your audience and run out of leads or your creative stops working, but this type of constraint can be preferable to losing leads because your budget was too low.
We like to suggest testing your Facebook budget by using a five day test using a $5 per day budget for 5 days. This test period will give you data to project cost per click and impression reached. Using the data from the 5 day period will allow you to forecast and set budgets for longer ad runs or ongoing campaign ads.
HomePage Marketing can help you develop a Facebook Campaign that is right for your specific targets, budget and message. Learn more about out how we can help with Facebook Marketing: Click Here