Ivan Ivanov posted on 17 May 2017
You can’t run a successful business spending a huge portion of your revenue for advertisement without optimizing your marketing strategy.
There is a short story with unknown origins that is often shared on social media with regard to running a successful business. It goes something like this.
The son of a multi-millionaire went to an expensive restaurant. Happy with the service, he decided to leave a tip for the waiter of 100%. The next day, the waiter had the pleasure to serve the multi-millionaire himself. Knowing how generous his son was, the waiter made the extra effort to ensure the satisfactory experience of the multi-millionaire.
However, once he gave the receipt, he found that he hadn’t received a tip from the father. In a burst of anger, he decided to confront the multi-millionaire.
How could you leave me no tip? Your son yesterday gave me 100% and you gave me nothing. Weren’t you happy with my service?
The multi-millionaire just smiled and answered.
I was happy with the service, but you must understand. My son has lived a lavish lifestyle ever since he was born. He doesn’t value money. I, on the other hand, have worked for every single penny to build the company I have. If I was living the same way as my son, I wouldn’t be a multi-millionaire today.
While we are all about supporting the service industry and would urge you to leave a tip whenever you can, we can’t help but agree with the moral of the story.
If you spend the money you have without properly evaluating your return value chances are you won’t be able to achieve your desired result. This is especially true for online marketing.
It is extremely easy to spend a couple of thousands of dollars on a Facebook Ads campaign. Ultimately, you should receive some leads without putting too much effort into the campaign itself.
Nevertheless, what if you were able to achieve even greater results with an investment of just $25 per week? You just have to think a little bit outside of the box.
To provide better advertising service, Facebook has put a minimum budget on their Facebook Ads platform of $5 per day. Ultimately, this will provide with different results, based on the industry you are in, your overall ad campaign and the type of your advertisement.
While we’ll discuss the different Facebook Ad types a little down below, we should first check out how much $5 per day can get you on the platform.
For the purpose of calculating the average results of Facebook advertising campaigns, we’ll use data from SalesForce. In their latest report on Facebook ads, the company found that the average cost per click ranges between $0.08 and $0.39, while the average cost per 1000 impressions ranged between $0.10 and $1.89, and the average click-through rate was between 0.02% and 0.91%. The cost per like was priced between $0.34 and $1.57 on average.
Based on the report and depending on the industry you are in, here is what $5 per day can get you.
$5 = 62 Clicks
$5 = 50,000 Impressions
$5 = 15 Page Likes
Worst-Case Scenario (based on Industry Averages)
$5 = 13 Clicks
$5 = 2,650 Impressions
$5 = 3 Page Likes
Nevertheless, these results may not correspond with your actual experience. In case you have a proper campaign in place, you might be able to achieve even better results.
On the other hand, those who try Facebook advertising for the first time usually experience higher costs and lower results.
One of the main factors to consider when building your Facebook advertising campaign is that the cost depends on multiple factors. While you can’t have exact predictions, the expected result should be closer to the truth when you make your calculations based on industry averages.
Building your advertising campaign based on how advertisements perform within your industry could grant you better results.
For example, if you operate a dating site, you might want to make a more shocking campaign with viral potential knowing that it will have a lot of impressions. At the same time, running an ad in the telecommunications sector, you might want to go more conservative and sell your service through the ad itself knowing that your reach will be lower.
Establishing a Facebook advertising campaign on a budget combines relying on well-known strategies and taking a few risks along the way. To be able to achieve the best results out of a smaller investment, you should have an exact vision and expectations, and make the effort of properly targeting your audience.
What’s more, you should be more flexible in your review process and not be afraid to experiment.
Step 1: Set goals
The first thing you should do when building your campaign on a budget is to set a realistic goal. Knowing the numbers you can easily calculate the results you can expect each month.
Step 2: Choose the right marketing objective
The Facebook Ads Manager gives you as much as fifteen different options for your marketing objective. While the consideration of ad types for collecting leads for your business is a nice choice, awareness type ads work best on a budget.
Step 3: Target the right audience
The success of your ad campaign will rely mostly on targeting the right audience for your product or services. One of the reasons why Facebook Ads are so popular is because the platform lets you target your ads based on a number of specific factors. Make sure to take advantage of that.
Step 4: Cater your ad towards the tastes of your audience
When choosing the proper way to create your advertisement, you should consider your audience. Do you expect your audience to cater more to a video or display ad? Will a slideshow or carousel be more attractive or will a single image do the job? Creating the right ad is the most important step to take when on a budget, so make sure you take your time.
Step 5: Choose the correct ad placement
Facebook offers multiple options when it comes to the ad placement. Make sure to experiment on which type of ad placement works best for you. Ultimately, you can also choose the default placement as well.
Step 6: Review, adapt, repeat
Ultimately, what you want to do is review the success of your advertisement, adapt it towards the specific tastes of your audience and repeat the process once again. Make sure to also try out a few different audiences as well instead of constantly targeting the same audience.
Facebook has an option for lead generation, which automates your leads helping you collect information from your audience with a simple form.
Nevertheless, being on a budget means that you won’t be able to experiment with your ad as much. Plus your reach will be lower. That’s why, instead of going for business leads you should rather target your audience with an awareness ad. Later, you will be able to turn newfound exposure into successful leads via your website or Facebook page.
That way you will be able to ensure that you get the most out of your initial investment. While some might argue that this is double the work as you will have to first attract your audience with the Facebook Ad and then work on the marketing of your Facebook page and website to get leads, it should not be the case. Chances are if you have a Facebook page and a website, they are already optimized to properly generate leads.
A lot of moderately sized companies make the mistake of not being able to properly segment their monetary investment in online advertising. While it does take some time and effort to realize the potential of each different social media platform, making optimal investments to achieve the best possible result can lead to huge savings for your company or your clients.
When being in the ‘startup’ mindset, you will be able to allocate your budget based on the proper priorities. For example, instead of investing $100 or more per week on Facebook Ads for Business Leads, invest $25 on exposure and give $50 for proper optimization of your website, brand and Facebook page to collect more leads.
Better yet, take the other $25 and spend it on a service, which helps you better analyze and adapt your advertisements. Making the optimal investment is crucial for the success of any business.
With just 25$ per week, you will be able to achieve more successful leads if you invest your money correctly. Ultimately, the best advice we can give you is to think outside of the box. The world of online advertising has turned into a statistically driven array of numbers, but you shouldn’t forget what’s at the core of gaining successful leads.
Nevertheless, a person’s experience is what drives sales forward. Consider how your audience will react to your advertisements. How will it make them feel? Will they just scroll past it or will it get their attention? Place yourself in the shoes of your audience the best way possible. Everything else is just down to the numbers.