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How much should you spend on Facebook Ads?

 

This simple, logical formula will help you plan your social ads spend.

Facebook advertising offers a relatively low cost, highly effective form of advertising. For many growing businesses, Facebook ads is the most powerful advertising method available, as it allows for clear measurability, and access to very targeted audiences at a relatively low cost.

While there is no one-size fits all formula to help a business calculate their budget for a Facebook ads spend, we have created a formula below that will help businesses begin to set concrete marketing and spending projections for their efforts.

A Few Helpful Statistics to Note:

  • Average Facebook Ad Click-Thru Rate: 0.9%
  • Average Website Conversion Rate 1.0%-10.0%
  • Average Facebook Cost Per Click $0.64
  • Average Facebook Cost Per 1,000 Impressions: $5.99
  • 6 to 8 touches to make a sale
  • Conversions with remarketing is 4x higher than native efforts

(Source)

Step 1: Determine your goal for Facebook Advertising

Are you looking to build brand awareness? Consider measuring impressions or reach. Are you seeking to get online conversions such as contacts, sales, or sign-ups for your email list? Measure things like website click-thru. (Click here to view our guide to measuring marketing success for more measurement ideas.)

 

Step 2: Gather Data

You’ll need to find the following pieces of data about your own marketing:

  • How many visitors does it take to convert (contact or email sign-up) on your website?

Configure Google Analytics Goals to determine this. If you don’t have that figure, assume a 1-3% conversion rate for initial estimation purposes. If you get direct sales through your site, you’ll want to adjust your numbers below to accommodate.

  • What is your sales process conversion rate for individuals who contact you or sign up for your email list? Once someone signs up for your email list or contacts you, what is the likelihood that they will become a customer or client?
  • How much valid (non-spam) traffic does your website receive each month from sources other than Facebook, such as Google, referral traffic, or email marketing?

 

Reverse Engineer Your Path

Let’s say that you’ve decided your business requires 10 sales per month. You’ve gathered your data and figured out that:

  1. You have a 1% conversion rate on your website. Therefore, for every 1,000 visitors that you receive, 100 of them sign up for your email list or contact you for more information.
  2. You have a 25% sales process conversion rate. For every 100 people that sign up for your email list or contact you, 25 of them become customers or clients.
  3. You receive 500 visitors per month from sources such as email, search engine traffic, and referrals.

From this data, you can glean that it will take 1,000 qualified visitors to achieve 10 sales per month. (Note: this will strongly depend on your sale process, but this should bear true, as it is based on your historic performance data.)

Now…

  • 1,000 Visits Per Month x 1% Conversion Rate=100 contacts per month
  • If, of 100 contacts, 10% end in a sale – 1,000 visitors should yield 10 sales per month.
  • If you get 500 visitors per month from sources such as email, search engine traffic, and referrals, you will need an additional 500 visits from qualified, interested parties.
  • Facebook Ads yield 0.9% click-thru rate. Therefore, it will take 55,555 website impressions to achieve 500 qualified website visitors to bring you to that goal of 1,000 qualified website visitors each month.
  • Average cost per 1,000 impressions = $5.99
  • Therefore, $329.45 per month would be the LOW end of your budget, assuming that your visitors are warm, well-qualified, well-targeted leads. This is assuming that you can convert someone in just 1 impression or interaction, because they are already familiar with what you have to offer. Remember that earlier statistic, 6 to 8 touches to close a sale…
  • If your audience is not established and has not had any interactions with you in the past, you will only be reaching non-fans to sell, drive traffic, and grow your lists. That is less effective and more expensive than targeting fans who expect (and desire) to see your content. You will need to multiply the number above times 6 or 8 in order to engage each individual enough to get them to convert. Therefore, you can expect that the HIGH end of your budget would be $1,976.70 to $2,635.60 per month

 

Ways to reduce your cost

The numbers above may seem impossible to budget for. Remember that over time, you can reduce your cost by keeping your audience engaged. You can also reduce your cost through retargeting (which has been shown to be up to 4x more effective, and 50% less expensive than ads without pixel retargeting). Here are other ways that you can reduce the cost of your Facebook ads spend:

  • Quality targeting
  • Long-term relationships with a warm and active audience
  • Retargeting with Facebook Pixels (increase conversion by 4x, reduce cost by as much as 50%)
  • Increase traffic from other sources by improving your search rank, email quality, and referral traffic

If you’re looking for other ways to grow your business through a comprehensive strategy, consider our small business coaching program, available to businesses nationwide. Click here for more information on marketing and business coaching.

If you want to learn more useful information like this, consider our Liftoff Business classes, available in person (in St. Louis) or online. Click here to view our schedule.

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How to Know When to Post on Social Media

By Rease Kirchner (@IndecisiveRease)

Content marketing may begin with great content, but even the best content won’t get any traction if it isn’t promoted properly. Let’s say you write an incredible article, then you take the time to craft your words for a clever Facebook post, and also design the perfect image. You hit the post button, full of confidence, ready for the likes and comments to roll in, and get nothing but crickets. Chances are, you’re talking to an empty room, or, in Social Media terms, posting when your audience isn’t around to see it. So how can you figure out when to post on social media?

Social Media Marketing is different for every business

If there were set times that worked for everyone, Social Media platforms would explode with activity for only a few hours of every day. We all know that social media is active 24 hours a day, 7 days a week – so the key is to figure out when your audience is active. It may take some time and effort to hunt down the data you need, but knowing when to post can really make your engagement numbers soar. Let’s take a look at the data that different social media platforms collect for you, and then explore some external tools that can help you dig even deeper into your audience’s habits.

Facebook Insights

Facebook has a built in analytics tool that has some pretty valuable information. To access Insights, go to your Facebook page and click the “Insights” tab in the top menu, then click on “Posts” on the left sidebar.

The Posts section will show you when you audience is active on Facebook, both by days of the week and by hours throughout the day. In the following example, the audience remains pretty active every day of the week, but users don’t start logging on until around 10am, with the most popular times being around noon and 5pm. Posting at those times would likely increase engagement and reach on posts.

social media metrics social media strategy st louis

This report from a different business page shows a very different trend. This page’s audience starts getting active around noon, but the most popular time is actually 9pm. The audience still remains fairly consistent in activity throughout the week, but you can see that Mondays and Saturdays are the most active days, so the best times to post on this page would most likely be Mondays or Saturdays at 9pm. Of course, it’s clear that the audience is active any time between 12pm and 9pm, so it would be best to play around with different schedules within that time frame.

social media metrics social media strategy st louis

Twitter Analytics

To access Twitter Analytics, go to your Twitter Page, click on your Avatar, and select “Analytics” from the drop down menu.

Twitter Analytics is not as robust as Facebook Insights, so you won’t be able to gather too many details about your audience, but it does offer a little information. When it comes to choosing when to post on social media, you want to know about your reach, so when looking at Twitter Analytics, you’ll want to check your “Tweet Highlights” and look for which tweets got the most impressions. Your top tweets will show how many impressions they received, which gives you a rough estimate of your reach at the time of the tweet.  Keep in mind that impressions can be gained through retweets and also through specific searches, such as searches for a hashtag included in the tweet, so those numbers are not directly linked to the time you posted.  It’s not an exact science, but if you notice a trend of higher impressions when you tweet at a certain time, that’s a good indicator that your audience is scrolling through their Twitter feed around that time.

Pinterest Analytics

Pinterest Analytics is only available for Business Accounts, so make sure you set up your account as a Business and not Personal. To access Pinterest Analytics, go to your profile page, click the gear icon, and choose “Analytics” from the dropdown menu. From there, click on “Your Audience”

Pinterest data falls somewhere in between Facebook and Twitter for usefulness; it doesn’t offer as many details as Facebook, but it does give you more than Twitter has to offer. The “Your Audience” page will give you a look at what days your account got the most impressions, which can help you decide what days are best to add new pins. This page also gives you a breakdown on where you audience lives, which is helpful for when you are thinking about posting times. For example, if most of your audience is on the East Coast of the United States, you’d want to keep that time zone in mind when choosing your posting times.

External Tools

If you really want detailed data, you’re going to have to incorporate a few external tools.

Hootsuite

If you’re on a tight budget and feeling lazy but still want to post on social media at optimal times, Hootsuite’s integrated scheduler is pretty useful, and it’s free for up to 3 social media accounts. This platform allows you to add Facebook, Twitter, LinkedIn, Google+, WordPress, and Instagram. If your accounts are established enough for Hootsuite to pull activity data, you can simply type up a post, hit the handy “Autoschedule” button, and let Hootsuite choose the optimal time for you. It should be noted that this does not yet work for Instagram, due to Instagram’s security parameters. It does, however, work quite well for other platforms. The catch? It only works the day of, meaning you can only get the optimal time for the next 12 hours or so, not for the whole week. If you want to schedule out for more than a day, you’ll have to choose the time yourself.

Buffer

Buffer, like Hootsuite, is a great free tool that analyzes data for you, and chooses the best times to post based off that data. This tool also has a free version, with the capabilities getting more robust if you shell out the cash to “Upgrade to Awesome” as Buffer puts it.

Buffer integrates with Twitter, Facebook, Linkedin, and Google+ on the free version, and throws Pinterest into the mix in the paid version. Buffer lets you choose how many times you want to post throughout the day and then picks several optimal times for those posts to go out for each different platform. Once it has those times, you can set it up to always post at those times whenever you schedule something within the platform. This is a step up from Hootsuite, because it lets you schedule out posts for a much longer period of time, all with the optimal posting time set in place.

Iconosquare

Instagram is beloved by users, but it can be really difficult when it comes to scheduling ahead of time and getting analytics. Iconosqaure is one of the best tools for getting data, but the free version is fairly limited. If you work the paid version into your budget, you will be rewarded with data on your most popular posts, followers, and a chart comparing your current posting habits to a schedule that shows when your posts are most likely to get interactions from your audience. You can request an updated version of this at any time, so it allows you to keep a pulse on new followers and also see if your current posting habits are properly lining up with your users’ most active times.

social media strategy st louis

This data is great, but unless you want to be a slave to your phone, you’ll have to figure out a way to schedule Instagram posts, which involves another tool.

Schedugram

You’ll have to pay for a subscription to this tool, but it does allow you to manage several accounts at once, and schedule Instagram posts ahead of time. Schedugram allows you to upload a photo, do some light editing, and include both a description and first comment with your photo, which is helpful for anyone who likes to use that first comment to load up on hashtags without crowding your description. This tool does not have any autoschedule or optimal time suggestions though, so you’ll have to figure out your posting strategy using data gathered elsewhere.

Monitor the data and watch your results

Content marketing is complicated and Social Media marketing involves keeping a close eye on the data. Make sure you review your data at least once a month, if not more often, to ensure that your audience’s habits have not significantly changed and to ensure that the times you are posting give your content the best chance of getting seen.  Social media is an invaluable tool for promoting your content, so make sure you are showing off your content to a “full room,” and not tossing away quality content by sharing it when no one is around to see it.