What Should Your Starting Facebook Ad Budget Be?

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  • Опубликовано: 10 сен 2024

Комментарии • 140

  • @BenHeath
    @BenHeath  4 года назад +10

    Thanks so much for watching guys! Let me know what you think and pop any questions you have in the comments :)

    • @nerf2752
      @nerf2752 3 года назад

      you said in video i can ask for somewhere around 30% of average customer value. but isn't that too much if the margin is low ?
      what will be the % in terms of profit share

  • @designxbuild
    @designxbuild 2 года назад +1

    Bro, binge watched your videos...thanks so much mate. Love from Australia!

    • @BenHeath
      @BenHeath  2 года назад

      Glad you like them :)

  • @GuyHarley
    @GuyHarley Год назад

    Seriously valuable video with some seriously quick maths from you! Thanks Ben!

  • @Waldstein1
    @Waldstein1 3 года назад +2

    For agencies and consultants, the only thing that this doesn't account for is the cost of hiring someone to do it for you. As an ads manager at an agency, i often find clients lumping in the cost that they have to pay us, which makes it hard to get them to put up a higher budget. Ben - if you're willing to share, I'd be curious to know how you handle these conversations with your clients?

  • @_qpiidTV
    @_qpiidTV Год назад

    So useful. I’m an artist trying to sell my music on Apple Music and I’m independent. I realised I approached the whole ads situation completely wrong. Luckily I didn’t spend to much. The ad pretty much wasn’t even shown to people so that was tricky to figure out. I think here you help quite a bit although I see I still have a long way to go.

  • @ShelitaRN
    @ShelitaRN 4 года назад +2

    This was amazing! I've seen many FB ads videos and purchased several FB ads programs, and I've never seen any cover content like and what you cover! Thank you!

    • @BenHeath
      @BenHeath  4 года назад +2

      Awesome, thank you!

  • @MindfulnessTarot
    @MindfulnessTarot 3 года назад +1

    Another great video, thanks for being upfront and honest.

  • @heysimmone
    @heysimmone 3 года назад

    Thanks Ben. Math question based on converting 10% of my leads to sales:
    If I need 10 customers per day that's 100 leads.
    How many people does my ad need to get in front of in order to turn them into a lead? View ad > click Learn More > Opt In for freebie > Convert to sale.
    I'm trying to make sure that my ad is getting in front of enough people. Thanks!

    • @BenHeath
      @BenHeath  3 года назад

      That completely depends on what your lead rate from the ad is. You could have say a 1% CTR and a 10% conversion rate from page visitor to lead - but change those numbers slightly and you come up with a very different reach requirement.

  • @premiumaccount757
    @premiumaccount757 3 года назад

    extremely helpful, thanks a ton ! Now I have a Clear view of what to invest when starting!

    • @BenHeath
      @BenHeath  3 года назад

      Glad it was helpful!

  • @Synthetic857
    @Synthetic857 2 года назад

    Very useful video thank you. All this time you were talking about a monthly starting budget and here I was shaking nervously thinking dam $500 per day...

    • @BenHeath
      @BenHeath  2 года назад

      Haha - happy to help :)

    • @Synthetic857
      @Synthetic857 2 года назад

      @@BenHeath So if you don't me asking, if within the first 7 days no sales should I just stop and start new campaign or change adsets and creatives before stoppping it completely? Thanks in advance.

  • @theironpatriot
    @theironpatriot 4 года назад +1

    This has been one if the MOST HELPFUL VIDEOS in the subject and I’m so gradual I can across this! Thanks for posting. I’ve already joined your Facebook group and your Instagram. Thanks for this, Ben!!

    • @BenHeath
      @BenHeath  4 года назад +1

      Hi Larry, thanks for the kind words - they are much appreciated :)

    • @theironpatriot
      @theironpatriot 4 года назад

      Ben Heath sorry for all the typos. But I’m sure you understood what I was saying. And thanks for replying. God bless you bro. Thanks again.

  • @dertester1
    @dertester1 2 года назад +1

    The issue though is that when you start from nothing you have absolutely no clue about the conversion rate, right? That's one of the most important variables and never gets explained how to set it, or what would be an average rate, etc. How should we set that value if we never did any ads before?

  • @psychxx7146
    @psychxx7146 2 года назад

    Finally a spreadsheet

  • @ayushthaker6882
    @ayushthaker6882 3 года назад

    So so so so helpful

    • @BenHeath
      @BenHeath  3 года назад

      Glad to hear it :)

  • @KKonzuk
    @KKonzuk 3 года назад

    Incredibly valuable content. Thank you!

    • @BenHeath
      @BenHeath  3 года назад

      Glad you enjoyed it!

  • @charanebot6423
    @charanebot6423 4 года назад

    Thanks for this. It is really valuable and needful to have such a good evaluation and expectation before starting. Makes so much sense.

    • @BenHeath
      @BenHeath  4 года назад

      Glad it was helpful!

  • @elliotbaker3757
    @elliotbaker3757 4 года назад +1

    Do you have a course on how to create Facebook ads for courses ?
    I have spent so much money on courses and got more value from your 8 minute video you made about Facebook ads for courses

    • @BenHeath
      @BenHeath  4 года назад

      Hi Elliot, I don't I'm afraid - perhaps one for the future.
      Glad to hear it :)

  • @ghost_assassinz1877
    @ghost_assassinz1877 2 года назад

    What would you recommend a starting budget for a relatively well sized construction company in New York City? If you don’t know the conversion rate can you just estimate?

  • @tieuchan284
    @tieuchan284 4 года назад

    Thank you for sharing Ben! I am just starting out in FB ads and really appreciate your vids!

  • @RobertMarzullo
    @RobertMarzullo 3 года назад +1

    Great content Ben! Thank you very much for sharing your knowledge!

    • @BenHeath
      @BenHeath  3 года назад

      Glad you enjoyed it!

  • @kristinak608
    @kristinak608 3 года назад +1

    Thank you, Ben, for great video! But if I start with a low daily budget (just for example $15.00 a day - which is my expected purchase cost) and if I will have a CBO campaign with 3 audiences in it (just like you advised in your CBO video) - so will those $15.00 be enough to cover the three audiences? Or that’s too small amount if expected purchase cost is $15.00? Thank you

  • @LostCreekFishingAcademy
    @LostCreekFishingAcademy 6 месяцев назад

    For the acceptable customer acquisition cost, do you put that as your total campaign spend? Per day?

  • @samanthalang7212
    @samanthalang7212 4 года назад +1

    Any advice anyone where I have started running an ad but none of my budget has been spent by facebook and its just there?

  • @jackhendricks5399
    @jackhendricks5399 4 года назад +1

    Hi Ben, great content and you are so helpful. Cheers! 👋

    • @BenHeath
      @BenHeath  4 года назад

      Thanks a lot - glad to hear it.

  • @DeanArviv
    @DeanArviv 3 года назад

    Hey Ben, about to start advertising and your videos have been very helpful so far, thank you ! 😁

  • @Bob-ce5nc
    @Bob-ce5nc Год назад

    Do you have a Video where you explain at which Point I should turn my Ads off based on the Statistik?

  • @lucialarotonda6542
    @lucialarotonda6542 3 года назад +2

    Hi Ben! Your videos are super useful thanks! My question is as follows: I understood and followed you regarding the budget when we are thinking in terms of leads and customer conversion. But what happens when we are in a really first instance with the Facebook page? I mean we still have almost no followers so our first objectives will be related to awareness and engagement to increase the reach of the page. How should I plan the budget in this case? I’d appreciate any insight you could provide me with. Thanks a lot and excellent job with your videos 😊

    • @BenHeath
      @BenHeath  3 года назад +1

      Thanks Lucia, I wouldn't actually start with reach and engagement, even in your situation. I would start by priming your Facebook page and then moving straight on to conversion campaigns if you can. You can find out how to prime your Facebook page here: ruclips.net/video/U5O2kBuIwmE/видео.html

    • @lucialarotonda6542
      @lucialarotonda6542 3 года назад

      @@BenHeath thanks so much for taking the time to answer and give me your feedback 🙏🏼 great I’ll have a thought about it. I had seen the video previously but I hadn’t been able to find the objective of page likes. I went through the comments and I found the explanation and the way to find it, so now I’ll think about this strategy you mentioned. Thanks!

  • @alexfroloff6353
    @alexfroloff6353 3 года назад

    GOLD!

  • @lindsayclark6531
    @lindsayclark6531 4 года назад +2

    Your content is amazing, Ben! Thank you for such clear, no-frills direction. What if you're running more than one ad campaign at a time? Do you divide the budget amongst the different ad campaigns or do you recommend running just one campaign with several ad sets to begin with?

    • @BenHeath
      @BenHeath  4 года назад +3

      Thanks a lot Lindsay :)
      I would just run the one campaign to start with and use multiple ad sets. I only run additional campaigns if I have different product ranges or different offers to advertise.

    • @lindsayclark6531
      @lindsayclark6531 4 года назад

      Thanks so much for the quick reply, Ben!

    • @ariannabidi
      @ariannabidi 9 месяцев назад

      @@BenHeath Hi Ben, and how do you do when you have more than one campaign goal? Did you happen to make a video about it?

  • @kaydeebug24
    @kaydeebug24 4 года назад +1

    Hey Ben thanks for the video! For the e-commerce side of things how would you recommend scaling? I watched your other video "How to scale a Facebook ad budget" and you used the example of $100 to $1,000 but my budget is starting at $20 a day. Do you have a percent number that you recommend scaling every 5-7 days? For example, increasing 10%? Thanks!

  • @Victory290809
    @Victory290809 4 года назад

    Very informative! Thank you for making this video! 👍

    • @BenHeath
      @BenHeath  4 года назад

      Thanks for letting me know - glad to have helped

  • @daisyhenderson2887
    @daisyhenderson2887 2 года назад

    Thank you for this video, I’m worried I won’t be able to begin my career in Facebook advertisement as I have dyscalculus, so even ‘simple maths’ doesn’t register well with me. Is there a more dumbed down version you can do explaining the maths calculations behind the explanation?

  • @adeyemiwaleconcept4328
    @adeyemiwaleconcept4328 4 года назад

    Always on point... Thanks Ben.

  • @khaledsiraj9114
    @khaledsiraj9114 2 года назад

    i think you miscalculated the starting budget as it should be the acceptable cost of customer multiplied by the intended number of converted customer $100*5=$500 not $500*5=$2500? am i right or wrong?

  • @ayyazahmad1055
    @ayyazahmad1055 4 года назад +1

    Thanks for such an informative video, Ben!
    Is there a video on audience exclusions? I have been trying to look for something on that because with CBO, is it a good idea to exclude audiences especially for an ecommerce business where old customers can keep coming back for new products? or should that be done specifically in a retargeting campaign?

    • @BenHeath
      @BenHeath  4 года назад

      Thanks for letting me know Ayyaz :)
      I haven't created one on audience exclusions. But I don't worry about excluding audiences unless the company is offering a discount of something along those lines that only applies to new customers. Then we will exclude previous customers from all ad sets.

  • @observer3359
    @observer3359 4 года назад

    Thank you Ben, can you please make a video of how to manage your facebook ads ? it gets messy with all boosted posts, remarketing ads, lead ads, conversions ads all running at once. I often find myself lost and dont know how much money am spending anymore

    • @BenHeath
      @BenHeath  4 года назад

      You are very welcome.
      I have recorded a video on Facebook ad campaign structure: ruclips.net/video/TBSuxR_Qa90/видео.html
      And one on optimizing Facebook ad campaigns: ruclips.net/video/biP_LsgwSlU/видео.html
      I think you'll find both of those very useful :)

  • @CromaCampusOfficial
    @CromaCampusOfficial 3 года назад

    Thanks for sharing this is really for beginner

    • @BenHeath
      @BenHeath  3 года назад

      My pleasure 😊

  • @Maxtunes2590
    @Maxtunes2590 2 года назад

    Hi
    Great video !
    One question, there's a message from Facebook that says: "Primary text longer than 280 characters may result in fewer conversions" , should I follow that advice? what to do ?

  • @leonardosmol2800
    @leonardosmol2800 3 года назад

    well explained, but how much should I spend per day?

    • @BenHeath
      @BenHeath  3 года назад

      That's what the whole video is about...

  • @terrywang0922
    @terrywang0922 3 года назад

    Hi Ben, I was wondering if there is a manual payment method option for ad account user in UK? I am just trying to add money to ad account manually instead of set a spending limit to the account. Thank you

  • @jasonstallworth
    @jasonstallworth 2 года назад

    Ben, is it wise to start spending $100 a day on ads (if the product already has a decent organic conversion rate?)

    • @BenHeath
      @BenHeath  2 года назад

      Sure - provided you can afford to lose that initially :)

  • @BaconMountainMan
    @BaconMountainMan 4 года назад

    Very helpful. Thank you!!

    • @BenHeath
      @BenHeath  4 года назад

      Glad it was helpful!

  • @caslvmbo9849
    @caslvmbo9849 4 года назад

    Thanks a lot Ben, really valuable! Only have 1 question left, why are you using you acceptable cost per lead if you're willing to spend more (acceptable customer acquisition cost)? What's the difference?

    • @BenHeath
      @BenHeath  4 года назад +1

      Hi Cas - thanks a lot. The difference is that you won't convert 100% of your leads into customers. Therefore you need to generate leads for a lower amount that your acceptable customer acquisition cost to reach that target.

  • @vmoris8762
    @vmoris8762 4 года назад

    Great video, VERY usefull!

    • @BenHeath
      @BenHeath  4 года назад

      Glad you think so!

  • @nadiaa.216
    @nadiaa.216 4 года назад

    Thank you so much for the informative video. But I was wondering how do we get the lead to customer conversion rate?

    • @BenHeath
      @BenHeath  4 года назад +2

      You are very welcome Nadia. To calculate that conversion rate you need to divide the number of customers by the number of leads.
      So if you generated 2 customers from 10 leads. You divide 2/10 which equals 20%

  • @dimanikitin8278
    @dimanikitin8278 4 года назад

    Hi Ben, thanks for the video! Could you clarify where am I supposed to get conversion rates from if I'm just starting? Also guessing? And by average customer value, do you mean customer lifetime value?

    • @BenHeath
      @BenHeath  4 года назад +1

      For your specific products and services you'll have to run some tests or ask someone who has experience in your space. You can use lifetime customer value but some businesses don't because of cash-flow issues

  • @sujitg31
    @sujitg31 4 года назад

    Thanks, Ben for the awesome content :)
    One question though -
    I am getting mixed results and unable to calculate the metrics as suggested by you.
    I have started FB ads very recently. One source of getting my customers is through FB ads while the other is from my email lists ( thru email marketing). how do I separate my FB sales from the sales that I get via my email list? How do I get accurate data?thanks in advance

    • @BenHeath
      @BenHeath  4 года назад +1

      Thanks a lot.
      I usually trust the Facebook metrics because your sales are unlikely to be completely one or the other. A customer may receive an email and see a Facebook ad. In which case BOTH had a hand in generating the sale.

  • @leeshonnefarrow651
    @leeshonnefarrow651 4 года назад

    Great video Ben! Good Job!

    • @BenHeath
      @BenHeath  4 года назад

      Thanks a lot Leeshonne - much appreciated.

  • @keenashirin662
    @keenashirin662 4 года назад

    Hey Ben, a question about the conversion rate. What are the factors that affect our conversion rate? Is there a rate that we should aim for? Thanks!

    • @BenHeath
      @BenHeath  4 года назад

      Hi Keena, everything about your campaign affects your conversion rate. Better campaigns produce more conversions :)

  • @saschan.6070
    @saschan.6070 3 года назад

    Awesome content, Ben. As always. Is this the MONTHLY or DAILY budget?

    • @BenHeath
      @BenHeath  3 года назад +1

      Daily :)
      Thanks a lot

    • @saschan.6070
      @saschan.6070 3 года назад

      @@BenHeath ​ @Ben Heath I figured! Thank you. Any tips on building small budgets? Or, convincing a client why they'll never scale or make the sales they expect with a $400/month budget on an $160 AOV.

  • @danielezabrini9857
    @danielezabrini9857 4 года назад

    Like your videos Ben!

    • @BenHeath
      @BenHeath  4 года назад

      Awesome Daniele, glad to hear it.

  • @themanthemyth7950
    @themanthemyth7950 3 года назад

    Great vid as aways Ben! If one is selling a $ 30 Product, how long will you leave the campaign running before you trash it? Currently I have one, and just testing using $10 bucks a day. So far, one sale :) :) :), which is like 60 bucks a sale. Should I increase the buget to have a better chance of hitting more people? Or should I stop it after a couple weeks? Should I wait for each custumer to see atleast 3-4 of my ads? I have about 22 link clicks to the promo page...

    • @BenHeath
      @BenHeath  3 года назад +1

      Thanks a lot. In general, I like to assess performance over a 7 day period. If you are profitable over that time, I would look to increase the budget.

  • @TEGA1984
    @TEGA1984 3 года назад

    Hi, why are Lead to customer conversion rate and acceptable cost per lead not applicable to E-Commerce?

    • @BenHeath
      @BenHeath  3 года назад +2

      Because most ecommerce businesses will (and should) go directly for purchases :)

  • @kayuapi80
    @kayuapi80 4 года назад +1

    Thanks Ben, I'm starting to see the light at the end of the tunnel. I think all ths while my ads is very messy. Thanks!

    • @BenHeath
      @BenHeath  4 года назад

      That's awesome Fadzli. Glad to have helped :)

  • @jingyiseak9198
    @jingyiseak9198 4 года назад

    Awesome video again Ben! Thanks a lot. :)
    Just a question, I did this calculation and I came up to a starting budget of only $300 a month. That is only enough for me to run 3 ads at $10 daily for 10 days. Which is not enough for me as I have a few A/B test, and I would like to run more ads after I have the winners from these A/B test. Should I decrease my daily ads budget to $5 per day? Or what should I do?
    Thank you.

    • @BenHeath
      @BenHeath  4 года назад +1

      You are very welcome.
      With just $300 per month I wouldn't run more than 3 ads in your ad sets. Otherwise you'll overload Facebook. I would either spend more or accept that it is going to take some time for you to test.

    • @jingyiseak9198
      @jingyiseak9198 4 года назад

      @@BenHeath I see. Thank you very much!

  • @AradMor
    @AradMor 3 года назад

    Hey ben,
    What are the steps I should go through in order to realise my lead to customer conversion rate?

    • @BenHeath
      @BenHeath  3 года назад

      Hi Arad, you just need to divide the number of customers you get by the number of leads. So let's say you had 10 customers from 100 leads. Then you do 10/100 = 0.1 = 10%

  • @ronslavick
    @ronslavick 3 года назад

    What about the FB pixel and learning phase? For example, if your CPA is $10 you need to spend at least $500 a week to get the 50 conversion out of the learning phase? Do you think this matters?

    • @BenHeath
      @BenHeath  3 года назад

      The learning phase isn't a big enough problem to artificially increase your budget to avoid.

  • @observer3359
    @observer3359 4 года назад

    Also what is the process you use to with every facebook ad client. e.g. onboarding -> budgeting -> ad creative -> etc.

    • @BenHeath
      @BenHeath  4 года назад +1

      I'll add that to the to-do list :)

  • @basvb100
    @basvb100 4 года назад

    Hi Ben,
    Thank you so much for all this info!
    I was wondering if there is an absolute budget minimum for facebook ads. Like i.e. if you go below 5$ per ad per day, would it give facebook not enough room to work things out smoothly?
    Thanks a lot in advance!

    • @BenHeath
      @BenHeath  4 года назад +2

      Hi Bas, I don't think it's worth the effort with less than $10 per day.

    • @iknowyou6725
      @iknowyou6725 3 года назад

      @@BenHeath But cant you test ads with 5 dollars per day?

  • @CombatFit
    @CombatFit 3 года назад

    Great video Ben! Very helpful. I was wondering when it comes to FB campaigns does the budget change across cold/traffic compared to retargeting those who visited the site and would you calculate the spendings for both as the acceptable cost per lead?
    Any help would be much appreciated, Dean

    • @BenHeath
      @BenHeath  3 года назад +1

      If you want to do that you can but I don't think it's necessary :)

    • @CombatFit
      @CombatFit 3 года назад

      @@BenHeath okay, also when it comes to cold v warm audiences. Do you recommend doing a separate campaign with adverts that link to the website and capture leads. Then another campaign to retarget those who visited the website?

  • @dorosnezeritis460
    @dorosnezeritis460 4 года назад

    Great video! Do you keep track of every number in Excel per client?

    • @BenHeath
      @BenHeath  4 года назад

      Thanks a lot Noris. No I don't but you could

  • @joshmccabe7187
    @joshmccabe7187 4 года назад

    Another great video! I believe I saw you using e-books before and I was wondering if you have a link you share to download in your eail or do you just include a file of the PDF e-book in your email to them?

    • @BenHeath
      @BenHeath  4 года назад +1

      Thanks Josh. For our 5-Part Facebook Ad Template we share a link directly to the file in the email that is sent to people after they opt in.

  • @sedociyes
    @sedociyes 3 года назад

    I will sell a product at 190$ and I am willing to pay 20 dolars for a customer. I want 20 customers per month so my starting budge it should be 400. That's okay but how should I calculate my daily and weekly budget based on this math? Could you please clear this one for me?

    • @BenHeath
      @BenHeath  3 года назад +3

      Sure - I'd divide 400 by 30 :)

  • @tylermorton9019
    @tylermorton9019 4 года назад

    Hi Ben, do you have a video on creating a sales funnel?

    • @BenHeath
      @BenHeath  4 года назад

      Hi Tyler, I cover that in detail in my Facebook Ads Insiders course but don't have RUclips videos on it I'm afraid.

  • @trayavlon
    @trayavlon 3 года назад

    How do you work out a clients lead to conversation rate?

    • @BenHeath
      @BenHeath  3 года назад

      Divide number of conversions by number of leads :)

  • @jaredignacio4580
    @jaredignacio4580 4 года назад

    If I were able to identify how much I am willing to pay to aquire a customer, should I use Bid Cap now?

    • @BenHeath
      @BenHeath  4 года назад +1

      I'm not a big fan of bid caps so I wouldn't - they interrupt delivery too much for my liking.

    • @jaredignacio4580
      @jaredignacio4580 4 года назад

      @@BenHeath would you prefer cost cap lets say when I reached 50 conversions?

  • @tlynn8120
    @tlynn8120 3 года назад

    i wanted to test more than 3-5 audiences so i created 3 top level campaigns with my budget allocated over all 3. Is this ok? Or should i decrease my audiences and put all into 1 campaign?

    • @BenHeath
      @BenHeath  3 года назад +1

      That's not how I would do it. I would stick to the one campaign and the max 5 ad sets. But when one targeting option doesn't perform as well you can pause that ad set and test a new targeting option. You don't need to test everything at once.

    • @tlynn8120
      @tlynn8120 3 года назад

      good to know. "you dont need to test everything at once". good quote!

  • @relaxwithsam5940
    @relaxwithsam5940 3 года назад

    I have a question what legal requirements do you need to have in place before you start a ecom business

    • @BenHeath
      @BenHeath  3 года назад

      Completely depends what you are selling and where you are selling it.

    • @BenHeath
      @BenHeath  3 года назад

      I'd look into the starting a business in your country process.

    • @relaxwithsam5940
      @relaxwithsam5940 3 года назад

      So ive found a product in the jewellery market and im from the uk

  • @mmjewels8506
    @mmjewels8506 4 года назад

    How can you figure out your conversion lead?

    • @BenHeath
      @BenHeath  4 года назад +1

      If you're just getting started you'll have to take an educated guess - perhaps ask someone else who offers the same service.
      If you're generated customers before it's simple. Just divide the number of customers you've generated by the number of leads you've generated. So if you've had 20 customers and 100 leads it looks like this:
      20/100 = 0.2 = 20%