How to Start a Business

Today, let’s discuss budgets and bidding for your Facebook ad campaigns.  We have already looked at creating an ad and targeting your ad for maximum results, and the third step in the process, as defined by Facebook, is to deal with the financial elements.

There are several financial advantages of advertising on Facebook versus Google.  On both sefvices, you are required to set a daily budget.  If your budget is very low, say $20, there is a good chnace Google wont even bother to show your ad.  However, Facebook will show your ad even if your budget is super low.  Also, as we have already discussed, Facebook ads are lots cheaper.  Usually cheap enough that you can run ads continuously.

After you select your target audience, the screen below comes up.

First, select a currency (dollars) and campaign name.  The campaign name is important and should reflect either the product or target audience.  For example, you may name it “wedding dresses 30 and up” for an ad that sells dresses to women above 30 years old.

Next, you are to select a budget.  Again, it can be low and you will still get hits.  But, setting a budget is critical and must be carefully considered.  If after two or three days you are not making 2-3 times the budget in sales, something is wrong and you need to readjust.  I would let a ad run and watch it very closely from the first hour to track results.

Third is the schedule, or when you want the ad to run.  Almost always, I would think that this would be continuously.  You may have a campaign that runs on certain days, like a church may runs ads on Sundays only, or a fantasy sports league may run ads only on game day.  But, generally, if an ad works, run it non-stop.

Finally, Facebook wants to know if you want ads run per impression or per click.  At this point we will only recommend running ads on a pay per click basis.  I will do another blog later about running ads on a per impression basis.  For now, know that pay per impression ads are sold per 1,000 views and are appropriate only for ads that get over a 5% click through rate.

Suggest prices are given in a small range, but are probably 3-4 times higher than you should use.  I recommend bidding around half or 50% of the lowest suggested bid.  So in the example above, I’d bid 33 cents and see how it goes.  Unfortunately, the estimated clicks per day turns off when you are outside the range, but using ad analytics, you can figure it out after 2-3 days.  Also, bidding higher does not make your estimated click per day go up!  I bid 74 cents and Facebook estimated 68 views, and then bid 67 cents and they estimated 75 views!

After you are done with this screen, a review ad and method of payment screen pops up. It is straight forward and familiar to use.

Next blog, the all critical landing page……

Related posts:

1. Adding a Facebook Fan Page for Your Business
2. Facebook Ads Are Old School Display Ads
3. Facebook Ads Better than Google Ads?
4. Creating Winning Facebook Ads
5. Targeting with Facebook Ads