Welcome to Let's run Facebook ads with me, Nate Boddington. This podcast is your go to for mastering Facebook ads. But as you know, success doesn't stop at the ad itself. We all dive into everything from funnels and e-commerce to email marketing, lead generation and more. If you're ready to take your skills to the next level, check out my new school platform@school.com. The Ads clinic. Inside you'll find how to videos and live drop in clinicals where you can ask your Facebook questions and get the answers you need to grow your business. And lastly, if you enjoy the podcast, it would mean the world to me if you would subscribe to the channel. It's the best way to help the podcast grow and keep bringing you valuable content every week. Let's get on with the podcast. Hello and welcome back to the podcast. With myself, Nick Boddington. Let's talk Facebook more specifically within Facebook. Let's talk about the question. I get asked more than anything else, which is what budget do you think I should have? So let's get into it. So budget okay, I get this question. I think I had it three times yesterday. I think I have that for my staff. I think I have it from my clients. I think coming from the clients who were in the agency. I think I have it on my, do clinic calls the lot. It's just endless how much this question get asked. And I think the reason this question gets, so much is because most people, not most smaller businesses don't have the budget. So they, they know they need to advertise on Facebook and or meta, Instagram, Facebook together, and they don't have loads of budget. They haven't put aside a marketing budget, you know, you know, unless you're a, a decent medium size business and above, you don't really have a meet, a marketing budget. So you're kind of like pulling from here and there, starting from Peter to pay Paul to get this right. So the thing that's in their heads most of all is, well, how much do I have to pay? Do I can I get away with a fiver a day? Do I do a lifetime budget and put in like £30? Do I need to spend to the thousands and the answer is not as simple as just saying you need to spend 30 pounds a day now. In our proposals, when we're going out to a club, a prospect has come to us a business, and they want to do some work with us as an agency, we will always look at a minimum, so we'll probably put in there a minimum of 40 pounds a campaign or a ad. Now the wet and two, you start getting into things. A campaign is obviously a campaign, and within your campaign you have ad says and then with your ad says you have ads. So when you say one ad or campaign for 2 pounds day, I'm kind of going along the lines of, in an ideal world, for every ad creatives you've got going 40 pounds day, $40 a day would be perfect because it kind of means that no matter what you're selling, whether it's expensive, whether it's cheap, whether it's lead gen or e-commerce, you're giving yourself enough to get into the algorithm, into the into Messi's algorithm, into its platform and into the auction. And what I mean by the auction is you've got all the businesses advertising there, and they're all trying to get to an individual. Now they're either leaving, it's Facebook going broad or Advantage Plus, or you're choosing interests. Now let's choose, let's say for example, the two okay. Two people, two people I've spoken to, I want a client and someone else is going to become a hopefully going to become an articulate client for me to consult. Now, one of them, the ads kind of client, has a business where they're trying to get leads of women who have just become pregnant or are pregnant to work. Now using work out, safe for a pregnant woman to do. Okay, now, I, I'm no professional and what pregnant women should do, but I would say they're all going to be certain movements. Even if you're into fitness, they probably shouldn't do. If you're pregnant, maybe the early stages are fine. Maybe six months into it. Probably. I think it is like, don't stop, don't stop working out, but be a bit safer. So that's her product. And then of all the other got another product which is also going to pregnant women, which is these, pregnant packs, which is basically a pack of freebies introducing Pampers and other products to a pregnant woman, because you've probably never come across these in her life, hasn't needed to now she's pregnant. Get them in front of the consumer. And it's a it's a great way to get those products into the consumer's hands. Now, both of these people, these clients have got exactly the same customer in mind. One is asking me what budget I should spend the day. I would probably like to get results for 5 pounds a day. The other one spends 30 to 80,000 pounds a month depending on what month is I if it's, you know, if it's if it's certain times of the year when it's cheaper to advertise last quarter it is more expensive to advertise. So we've got the same same demographic. Now on one hand it's not just about the money. It's because you could say, well, face was just going to favor that company spending like 50,000 a month. Not necessarily. It comes down to your content. So the most important person to Facebook is the user on Facebook, you and me as consumers, sitting on Facebook and Instagram and going through our, feed and looking at reels and things like that. The idea of the platform since it started and it still goes now of all these platforms, is they want to keep the user on there as long as possible. If they go from, Instagram, they might be going into TikTok. They don't want that to happen. So how do you not make that happen? You make it as engaging for the user as possible, which means that whatever organic content they're seeing, it's what they want to see, whatever ads they're going to see, it's what they, you know, engage with and potentially purchase. Okay. So it's making that environment for the user as 100% engage as possible. So if my client, who's only got 5 pounds, wants to spend 5 pounds a day has got unbelievably engaged in content, she is good, probably, probably going to do probably better. The other clients got 50,000 pounds a month but doesn't have this as good content. I'm not saying they haven't gone, I'm just giving you an example. But the other problem here is that on 5 pounds a day, her content might be brilliant, but she's just not going to get into the auction enough. Okay, she's Facebook is just not getting enough budget to go. You give me 5 pounds a day on average. I know that a CPMs for your industry is going to be 20 pounds, so that's how much it cost to get to a thousand people. Let's say it's 20 pounds. So it means she's only going to get to 250 people a day. Reach. Okay. So you just fully back out again. Whereas my other client content, let's say maybe it's not as good, but it's still but it's still getting people engaging and clicking through and buying the product or getting the freebies or whatever. But with that kind of budget, they're getting right into the auction, okay. It's really giving it a chance to learn and learn and learn. So that's that's one way to look at the other side is the learning phase, the dreaded learning phase. So Facebook says that and and I do hold this with a pinch of salt. But lately I've seen this, more because I've been experimenting. So when you set an ad live and you whatever budget you have, to start off with, depending on what your product or lean cost is. So if your average lead cost is a pound, for instance, or your average purchase cost is a pound, for instance, to keep it easy, Facebook says it wants 50 conversions. So that's a lead comes in or a purchase of a website, 50 conversions in a seven day period. So, buy based on that, you would need to spend 50 pounds in total if you were getting a conversion of a pound. Okay. Which means 50 pounds, you're going to get 50 conversions and you exit the learning phase, which means that Facebook has put your ad out there enough to see what's going on, people clicking through, engaging with it, etcetera, etcetera. It's had it's 50 conversions and it's gone perfect. We now know what we not we now know exactly who's who's buying a product or generating leads for you. We can crack on and you create a nice, stable environment. Doesn't mean it's going to last forever because your content will start running out. All these other things start happening. But that's not that's another thing. But the fact is, you've left a learning phase. And that learning phase. I do have clients who have expensive products and never leave that learning phase, and they still get results. Could they get better results if they spent more money? Probably. But it's not that they don't spend that little money. One of them is a, a fitness company. Now, they only give me, I have 290 pounds a day to spend. And now my discussions with them are we have they want 12 ads running, but then we're talking, let's say 12.50 pounds a day for an ad. Some more expensive than others. But their equipment, gym equipment, as you probably know, it's pretty expensive stuff. So for Facebook to actually learn, leave the learning phase, if we're talking for an average order value of theirs might be 200 pounds. That's 200 times 50, because we remember looking at the the seven days. I want 50 conversions, seven days over 200 pounds times 50 conversions is 10,000 divided by seven days, is 1,428 pounds a day. That is what Facebook and other ad professional media buys. I myself say you should have, but I run an agency. We've got a fair few clients and there aren't many. The are spending the kind of money that Facebook and other professionals say there are some that what I just said example the the the baby packs 50,000. You know, an average a month they spend. They're going for Legion. Okay. People to sign in to get a free pack. So we need on average, we're getting it for 1.80 pound elite. Now that makes a big difference because I 181.80 pound times 50 in a week it's 90 pounds. Well all of all of the ads and they're running about 190 ads. They're all spending that kind of money okay. So it's easy for them to leave the learning phase. So don't it's a good gauge for you. And even if you're starting out trying to get an average of what does it, what do we think that my product will cost to convert? Well, what do we think a leader will come in to convert and then times it by 50 and divide by seven? We'll give you a kind of idea. But you know what? It's going to be way out. So if we go to the realistic things of how much it's going to cost, you want to start looking at, I would say a minimum of 20 pounds or $20 a day per campaign. Now, depending on your audience size, it might be too much. For instance, I've got a flower company, a flower company. I do wedding flowers. Now I can go into their account, should I where wear? I'm going to tell you the little things they're doing, but just to give you idea, I had a call with them yesterday and they, What do they spend today? So they got three things. So we've we've kind of set up a bit of an ad structure for them. So their first ad, that go campaign that goes out is an awareness campaign. This awareness campaign has six different video sets in it. And because it's awareness and we're not go for Legion or purchase this point, it's a cheaper way to optimize your ads, but you're not going to get conversions of an awareness campaign because it's just not set up to do that. Where, you know, to get conversions, the algorithm knows to put an advert in front of someone when they look like they're about to buy. So if they're searching for the washing machine and they're on the internet looking all these different places, and getting quotes and adding to cart and things like that, Facebook knows, right? This is the time to set and send your ad if you're selling washing machines in front of Joe Bloggs because he's about he or she is about to make a purchase that's, you know, as far as the algorithm goes, they might not make that purchase, but that's why you're paying more for that. When you're doing an awareness campaign, it's showing that at all times of the day. It's just it's not it's not using its algorithm in depth enough to know when someone might purchase. So it becomes a lot cheaper. So this particular client is spending on a day. Where is it ads. Video ads. Okay. And the way we've set this up is and they then they build an audience of anyone who watches three seconds of any of those video ads. So that's 5.5 hours. And it's quite a lot of people watching three seconds. Okay, now we go into the next one, which is a traffic campaign. A traffic campaign, again is a lot cheaper than the conversions conversions campaign. We're seeing people go to the website now, I don't like traffic campaigns going out cold to find a new audience to pull them into the website. But this one's different. This is people who've engaged or watched the video or gone to, their Instagram or engage their Facebook or whatever. So it's kind of retargeting. So we're building an audience, all those people, and then we're putting an ad, and how many hours they have, they have, one ad set, which all of us are going to those people, and they've got four ads in that, and they're spending 10 pounds a day now, $10 day. Sorry. Yesterday they had 11 people from that audience. Click back to the website, which is 89, cents. Okay. So, so far they're spending $20 on two campaigns, but they're cheaper campaigns. Now on the last one, they've got a lead campaign, which I think they're spending 10 pounds a day on. And on average, they're getting one lead. Sorry, one lead every, every two days. So what you could do say to them is, okay, well, they're understanding now the their average lead cost is costing them about £30. So they need to if they wanted one every single day, they need to spend $30 a day to get one lead a day. Is that starting to make sense on how we do it? So if your lead cost and you're running around, you've just started, you know, spending$10 a day, 10 pounds a day and your lead cost is coming in at 30 pounds for you to really get into the auction, you need to set spending at least 30 pounds a day to know that you're going to get one lead a day, or one purchase a day. Does that make sense? So it's kind of like, how much should I spend realistically get $1010 or 10 pounds or 20? Even a bit better. Get your campaign going with whatever you're doing. Lead general customer cost, sorry, or purchases on a website and run it for a few days a week, maybe two and start seeing the metrics of what your cost per purchases are and things like that. And then you can start weighing away. You need to be. So if I look at the ads content client who said, oh, you know, she'd rather spend five, 10 pounds a day if it's costing, if we know we want it to work and where we send people, because at the moment it's not really doing what you want. So I've, I've sort of said, let's send people to a landing page where they can get five workouts for free, really gives them a taste of what they're going to get in this, in this package. And if it's costing us 5 pounds to get someone there, then. Okay, well, we need to if we want four people there. Sorry, not getting there, but getting someone to register for if we want for a day, we need to spend £20 a day. Okay. And then of those four a day that coming in, we need to see if they've sort of had a a play around with that in a bit of free trial. How many of those are going to sign up and pay 100 pounds for the package, in which case we start, we start, going backwards. So when we've got our first person that's bought it, we might say, okay, well that meant that to get one person to buy, we needed 20 people to register. Okay. So it's 1 in 20. So you can just start weighing up and reverse engineering where you need to be with the budget to take your business to where you need to go. I hope that helps. Either way, it's not £5 anymore. It's more like $20 to be. If I was to say how much right now,$20 is a good place to start to start learning things. So that's where you need to be. If it and that. And that's what, 600 pounds, $600 a month to get yourself going. So that's what you need to set aside. Ready. Okay I hope that helps. And I'll see you the next one. Bye bye. Thank you for joining us again today. If you want to find out more, please head over to our socials at Let's Run Social, where we share daily content. And please feel free to drop us a message. We'd love to hear from you and any questions that you would like answered. We can do that here on the podcast.