How to Calculate Your Facebook Ads Budget

Whether you're a veteran advertiser or you're thinking about running your first ad, this resource should come in handy to help you become more confident that advertising on Facebook will be a good use of your marketing budget.

Read full post - https://www.jeffalytics.com/facebook-ads-budget-calculator/

In this post, I am going to help you answer your most pressing Facebook advertising questions using my Data Driven Facebook Ads Budget Calculator.

You can download the Budget Calculator below. Watch or read along and I'll show you first-hand how to use the calculator to project a target budget for your Facebook Ads.

We'll also look at how to use your business numbers to estimate your profit potential from Facebook advertising.

Know your numbers (and set your budget) BEFORE you advertise on Facebook

The Facebook business manager provides many useful reports on the “known” aspects of advertising. I.e. how much you spent, when you spent it, and how many actions were driven.

But when it comes to planning, the data Facebook provides becomes far less useful, because they don't know your business strategy!

You need a tool for validating your business numbers before planning your advertising budget.

That's why we've made the Data Driven Facebook Ads Budget Calculator for your fun and profit.

The budget calculator uses vital numbers from your business, like lead to sales conversion rates, product costs, and advertising management expenses.

These metrics are crucial to projecting your budget and earning a profit from advertising. But quite honestly, they are none of Facebook's business!

The calculator I am sharing with you today helps you use YOUR business numbers to project and estimate the right budget for your advertising goals.

let's bust out the Data Driven calculator and start projecting your budget.

The golds cell in the calculator are inputs (or variables).

Changing the numbers in the gold cells will have a trickle-down effect on your estimated results.

Facebook Ad Spend Per Month
The first variable in the calculator is your monthly Facebook Ads Spend. Now, you may be thinking, “If I knew what my Ads Spend should be, I wouldn't be reading this article.”

…I hear ya!

BUT… bear with me, and I'll show how this works out in the end.

For right now put an approximate number in for your Ad Spend.

You could use your max advertising budget, a generic estimate, or the total amount you spent at Starbucks last year.

You'll understand how to turn this number into a product of YOUR data by the time we finish this exercise.

Average Cost Per Click

Although it's more common to optimize for results or actions on Facebook, you can also optimize for ad clicks.

You can estimate your click costs using your advertising history. Or you can input your target cost-per-click (CPC) into the calculator.

Facebook Cost-Per-Click

Leads are people who engage with your ads and give you a way to follow up with them.

Your leads might subscribe to your email or messenger list, or sign up for follow up call.

So for this variable, you want to estimate the rate at which people will respond to your ads and give you their contact information.

Lead Conversions and Cost Per Raw Inquiry

With all your variables filled in the top section of the calculator, you can get an idea of how many leads your budget will produce. You can also estimate your lead costs.

At this point, you may want to adjust your budget based on these estimates. Or, you can keep going and see how your conversion metrics impact your Ad Spend.

Qualified Lead Percentage

Many of the leads your ads produce will not be any good. Some leads will give you a junk email address. Others will lose interest moments after they take advantage of your opt-in offer.

Qualified leads are the people who continue to engage with your messages after they sing up for your email or messenger lists.

You can use the open rates of your “welcome” emails, or you're follow-up call response rate to estimate your qualified lead percentage.

Email Sequence Completion Rate

Most advertising campaigns use an email sequence to nurture their lead's interest after new subscribers opt-in into their list.

Your Email Sequence Completion Rate is the percentage of people who engage with your messages all the way through to your sales offer.

Up-Sell Take Rate

In the calculator, your Up-Sell Take Rate is the percentage of people you expect to take you up on your offer and make a purchase.

Average Revenue Per Sale

Your average revenue per sale is the average price of the products or services you're promoting with your Facebook Ads campaign.

Read full post - https://www.jeffalytics.com/facebook-ads-budget-calculator/

Видео How to Calculate Your Facebook Ads Budget канала Data Driven by Jeffalytics