What is the right budget for your Facebook Ad campaign? We take an in depth look at daily vs. lifetime budgets and discuss when to use each, what the limitations are and how these different constraints can be used strategically to maximise reach and the distribution of your campaigns.
If you’ve been on the fence about Facebook ads, you’re certainly not alone.
That said, paid campaigns are becoming a matter of “now or never” or brands today.
With Facebook’s updated algorithm
throttling organic reach, paid posts are the only surefire way to ensure that your audience is actually seeing your content.
And if nothing else, marketers have seen an absolutely insane ROI from Facebook ads.
Laser-targeting specific demographics. Remarketing to people who bounced from your site.
In short, you have the opportunity to zero in on exactly who you want without blowing out your budget.
And speaking of which, conventional wisdom tells us that Facebook ads can get a bit pricey.
In fact, you might have heard that Australia boasts one of the highest costs-per-click among Facebook advertisers
Don’t let that freak you out, though.
Because so much of scoring that sweet, sweet ROI from Facebook ads boils down to how you budget.
In this guide, we’re going to help break down how you can get the most bang for your buck for your next campaign.
Breaking Down the Facebook Ad Budget Types
Whether you have $100 or $10,000 to spend, understanding how Facebook treats your ad budget is critical to how you approach your campaigns.
The good news? The platform does have a system of checks and balances in place to keep you from “gambling” with your ads or draining your budget in one day.
Even so, Facebook gives us two distinct choices when it comes to budgeting our campaigns.
On one hand, you can choose a daily budget. Simply put, your daily ad spend is capped at a specific amount and that same amount to allocated to be spent in full if the platform sees fit.
And on the flip side, you can choose a lifetime budget. This pretty much puts the serving of your ads in the hands of Facebook’s targeting system, serving based on optimal timing.
At a glance, the potential ups and downs of these particular Facebook ad budgets may not seem clear.
Heck, you might be even thinking “Does it really matter?”
Well yeah, it kind of does.
For example, you could inadvertently stunt the reach of a kickass campaign by limiting yourself to a minuscule daily budget.
But then again, your lifetime ad spend might eat itself up faster than you predicted, leaving you with less cash in your pocket.
And so how you approach your budget ultimately determines what your ROI is going to look like at the end of the day.
Both daily budget and lifetime budget campaigns have their strengths, though. Which one is right for you is based on your goals and what you’re willing to spend.
“When Should I Run Daily Budget Ads?”
If you’re interested in running a remarketing campaign
, daily budget is where it’s at.
Given that daily budgets will serve ads throughout the day (or night), tying them to remarketing campaigns from your email list or bounced traffic ensures that you’re only spending money getting in front of relevant users.
In other words, your ads are always “on” for the people who matter most. Meanwhile, you can fine-tune the frequency of your ads during the bidding process to keep costs where you want them to be.
A shining example of a Facebook success story
, Airbnb noted a 3x ROI in ad spend as well as a 47% lower cost per acquisition via dynamic product ads.
Bear in mind also that Facebook daily budget ads are based on an average over time, so you could end up spending slightly over or under your daily allocation based on your CPC. Facebook notes that this can be as much as 25%
as the ad platform works to find the best opportunities to serve your ads.
“Okay, What About Lifetime Budget Ads?”
We’re glad you asked!
Setting a lifetime budget is ideal for maximising your exposure in a relatively short amount of time.
For example, let’s you’re trying to nail down last-minute sales or drive sign-ups to an event with a deadline fast approaching.
Giving Facebook the reins, the platform serves your ad around the clock based on who they deem to be most relevant.
If your campaign or promotion is time-sensitive and you want to maximize engagement, a Facebook lifetime budget more than like makes sense.
In short, these sorts of ads are “high impact.” Optimized timing does the legwork for you and you don’t have to worry about missing opportunities based on the time of day.
Another nice bonus of using a lifetime budget is the fact that you can set specific ad schedules. This allows you to drill down even further in terms of targeting, only serving your ad during hours that make sense for your audience.
Daily vs. Lifetime Budget Ads: Which is Right for You?
Although budgets may not seem like a big deal at a glance, the parameters you set ultimately determine whether or not your maximise your campaigns’ potential.
For example, you may notice that the dollar amount you input into your daily or life budget has a direct impact on your ads’ reach.
Also, simply consider how much cash you have on a deck to spend.
But regardless of your budget, remember that the sooner you cozy up to Facebook’s ad platform, the better. These are the sort of details you’re going to want to already have in your back pocket given how important ads have become.
So, Ready to Run Your Next Campaign?
There’s a big-picture takeaway no matter what budgeting strategy you choose:
Squeezing the absolute most out of your Facebook ad spend is a must-do.
With paid posts taking over for brands, it only makes sense to work with someone who’s been around the block with Facebook ads. If you want to learn more about how Hello Social can help you with your next campaign, feel free to get in touch