Facebook Campaign — Budget Optimization

Don’t know how much to spend on a Facebook Marketing Campaign?

or

Want to optimize your Facebook campaign budget?

A simple way to calculate the budget for Facebook ads:

1. Decide on the campaign goal
2. Create audiences
3. Calculate the budget required for each audience
4. Sum up to get the complete budget

1. Decide on the campaign goal

Everyone will emphasis on goal creation and if you have your marketing objective clear, then the Facebook campaign goals should be in line with these goals. To know more about how to create a marketing strategy for start-ups click here.

2. Create Audiences

Working backwards is very important as by doing so we can optimize our budget and get better results in the same budget. Hence, we must first decide the target audience and its size. I can say this from my personal experience that the smaller the size of the audience the better the results. Instead of creating 1 big audience, I would highly recommend creating 5 or 10 small audiences.

For example, if we want to target foodies all over India, we can create an audience for different cities or regions like Mumbai, Pune, Delhi, Bangalore etc. then further filter them on interest. This way instead of targeting all India foodies (suppose 1 Cr) and spending the complete budget, we target foodies of Mumbai (suppose 10 lac), Pune (suppose 8 lac) etc. this way our target will be narrower and more relevant people will be reached.

3. Calculate the budget required for each audience

On an average INR 10 should be spent per 1000 impressions in a month. Therefore, now if we have a Mumbai audience of 10 lac people, then we must spend INR 10,000. We can divide the audience size 10,00,000 by 1000 and multiply by 10 as we spend INR 10 for every 1000 people reached. Similarly, we can calculate budgets for each audience and then sum it up to get the total budget required for the Facebook campaign.

4. Sum up to get the total budget

Finally, just sum up all the budgets required by each audience to get the total budget. Now, if you feel this budget is too high then jump back to step 2 and filter your audience further. Facebook gives a lot of options to narrow your target audience so use them wisely to get the right audience. This way you can narrow your budget.

If you feel stuck while filtering your audience and there no further scope to do so. Then simply reduce your scope/ reach of the campaign. By saying reduce scope I mean that if you are planning to target all the Tier 1 and Tier 2 cities of India, reduce the scope to let’s say 10 cities or 15 cities only.

These were the simple steps to get a budget for your Facebook campaign. Please share your views in the comments below!