How to plan a perfect budget for Facebook ads campaign?

Do you want to know how to set the perfect budget for your Facebook ads? This article is for you!

Facebook is definitely still one of the best ad platforms when it comes to running social media advertisements. Using FB’s ads manager, you can also show the ads on Instagram. It provides us – the marketers a lot of functionalities/features to help us launch effective ad campaigns, whether it is for the Top of the funnel (Brand awareness), Middle of the funnel (Traffic) or the bottom of the funnel (lead generation).

Before we launch the campaign, we must know what we want to achieve and how much budget we need to fulfil that goal. 

In this article, we will talk about the ‘Facebook budget planning’ and how can you come up with the correct budget for your Facebook ads campaign.

1. Define your objective and sales goal 

First things first, before we set up the budget, you need to know how much sales revenue you want to generate via the Facebook ads campaign. 

Let’s say you want to generate $10,000, and the cost of each product or service you sell is $200. (This is just an example. Based on ‘your objective’ you can add numbers accordingly)

In this case, 10,000/200 = 50 sales

(50 * 200 = $10,000)

So you now know that you’ll need to make 50 sales to generate your target revenue goal of $10,000.

2. Determine how many leads you need to generate from Facebook ads

As now you know that how many sales you need. The next goal is to calculate how many link clicks/landing page views you need to achieve that goal.

To calculate, we need to know our average conversion rate. This means how many people who view the website finally convert. 

Suppose your sales conversion rate is 5%, which means for every 100 landing page views, you will get 5 sales. To achieve 50 sales, you will need 1000 landing page views.

3. Find the estimated results from Facebook to calculate your campaign budget

Look at the data from your previous ads if you ran before, or go ahead and set up the campaign with your ‘audience targeting‘ and preferred budget to get the estimated results forecast from Facebook. Don’t worry – you can discard that draft if not yet ready to launch.

It will tell you how many landing page views you can get at your selected budget (estimated). 

If 1 landing page view costs = $0.80 

Then to get 1000 landing page views, your budget should be $800

With a budget of $800, you can achieve your sales target of $10,000. 

This is how you can calculate a budget for your Facebook ads.

Conclusion – 

Before you start a campaign, you must know your goal and the sales number that you want to achieve from Facebook ads. Then based on your sales conversion rate and ad targeting, check with Facebook ads to calculate the estimated results you can get. In the end, based on that, decide your budget.  

If you need help with Facebook ads, visit our agency website for more information.