There are plenty of Facebook Ads marketers who are reporting conversion costs of anywhere from a few cents to a fraction of a penny. Others aren’t so lucky. In fact, most inexperienced marketers are reporting quite the opposite and are getting burned due to astronomical ad costs.
Now there are plenty of factors that come into play when talking about Facebook ad costs. But obviously, before you even get started you should have some sort of budget in mind (unless you have an unlimited supply of money).
Here are three ways you can lower your Facebook ads budget:
1. Know your target audience
Ideally, you should already have an idea of who’s going to be interested in your product or service. Whether you are a first-time entrepreneur or a battle-hardened businessman, you must know who your target audience is. Is your product geared towards women or men? Are you targeting young professionals or travelers?
Knowing your target audience will help lower your ad budget because there’s a higher probability these people are going to be interested in what you have to offer. Targeting an audience who doesn’t fit your ideal user will lead to higher ad costs because they won’t be paying your ad any attention.
2. Set a bid cap
You can set a daily or lifetime budget for your Facebook ads. But did you know you can also set a bid cap? If you didn’t know before, well now you do. A bid cap is like what the name suggests – Facebook will put a cap on your bid. So, for example, if you can only afford to pay $0.5 per click, then you can put that amount as your bid cap. Otherwise, Facebook may charge you $1 per click, or more, depending on the competition. A bid cap helps ensure you don’t go beyond your budget.
3. Don’t advertise around the holidays
During holidays, people tend to buy a lot of things online. This buying frenzy drives marketers and businesses to create Facebook ads to get buyers’ attention which in turn drives up the advertising costs for everyone. So if you don’t want to compete with many other businesses, it’s best to not advertise during peak seasons like Black Friday, Cyber Monday, Christmas, Thanksgiving, and other important holidays. There are 365 days in a year – you can always advertise before or after the buying season to help lower your ad spend.