Have you ever wondered how much you should be spending on Facebook Ads? Or maybe how big your target audience should be? Today, we are coving both of those questions on Facebook Ads!
First up, how big should your audience be? I don’t think that there is one magic number but there are some best practices that everyone should be aware of. The first thing that you have to think about is the campaign you are running and where your audience is at within the marketing sales funnel.
As a reminder, the sales funnel is the path that a person takes from getting to know your business to buying or using your product or service.
When you are focusing on the top of the sales funnel (the cold audiences), you will need a large audience because only a small portion of those people are actually going to take the action that you want. However, you don’t want it to be too big because then your ad might not be relevant due to the fact that your audience is too broad.
How do you know if your audience is too broad or too small? First, let’s talk about a brand awareness campaign. If you owned a restaurant and you wanted to get more traffic, your audience and expense are going to be very different if you lived in a town of 50,000 or a city like Manhattan. In this situation, you should focus on the areas that are close to your restaurant.
Another thing that you want to think about when talking to cold audiences, if your goal is a conversion, you should be providing some sort of benefit to them so that they will opt-in to your email list. This could be a mini-course, guide, etc. This can be difficult because you will need to have a broad enough audience for Facebook to target, but not so broad that the content isn’t relevant or interesting to your audience.
Many times in order to get this right, you need to play around with your target audience a bit. Everytime that you make an adjustment to your audience, I recommend creating a new ad set so that you can track how the changes are affecting the ad.
Next, let’s talk about if you plan on targeting a warm audience. This is anyone that has indicated that they know who you are and they are interested in learning more. Many times I see people spending too much on the warm audience.
You want to be sure that you are using the potential reach tool (on Facebook Ads) to your advantage. If that tool says that there are less than 1,000 people in your potential reach, that is only ok if you are going after warm audiences. If you are going after cold audiences then you want to be in the “green” area and have a broader potential reach.
Here is a good rule of thumb: you should be spending $0.03-0.07 per person per week on your warm audience. If that audience for you is really large, then you might want to segment that audience if you can’t afford to spend that amount.
Now, I said that some people tend to spend so much on their warm audience because if you are trying to spend too much money, Facebook probably won’t even be able to use a large amount of money and people are going to get sick of seeing your ad over and over again.
To recap, you want to make sure that your audience isn’t too broad and you are targeting people that don’t care about your products or services. And you also want to make sure that your audience isn’t so narrow that Facebook can’t find anyone to target.
When you are going after warm audiences, you need to make sure that you are showing up where they are hanging out (not just in their inboxes) and you should be spending between $0.03-0.07 per person per week.
Those are the tips for today! Now, make sure to come back every Tuesday and Thursday to see more tips and tricks!
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