What Facebook Ads Cost / Budget Planning
Planning your budget is important – I have done many Live Q&A’s in groups and without doubt, one of the most common comments I hear about Facebook Ads is “I did an ad, got no results from it, waste of time and money”
When I ask a bit more about the ad, it transpires that they spent £5….
To put than into context – for £5 (if we assume a CPM of £10) – means your money will buy you 500 impressions. With a frequency of 1.5, that’s 333 unique individuals that your ad has reached.
To put that into context further – your posts on your page organically probably reach more than 333 people!
…Throw into the mix, the fact that you’re probably hitting those 333 people who have never even heard of you before with a hard sell,warm/ hot audience message (asking them to marry you), and it’s not really surprising that you’ve seen no results!!
| What | Average performance |
|---|---|
| CPM (1000 ad impressions) | A well targeted, good creative to an engaged audience at a ‘low peak’ time of the year may be as little as £2. A sought after audience (like business owners/B2B) during a ‘high peak’ buying period (Q4/Pre-Black Friday/Christmas) might set you back £20+. But in this course we are assuming an average CPM of £10 |
| CTR (Click Through Rate) | This is the % of people who click through on your add, after seeing it. This might be somewhere between 2-4% on average, a great performing ad that is well matched to its audience could be 5-10%, but if this is below 2% it’s a sign that your Creative is not appealing to the audience you have targeted. |
| CPC | Cost Per Click – If 4% of people click through to your website, on a CPM of £10 – this will result in a CPC of 0.40p per click. |
So your ad isn’t getting results because…
You spend £5, which bought you 500 impressions. You got a click through of 5% which means 25 people clicked through to your website.
The average conversion rate on a website is around 1-3% – so your results are naturally, zero.