Hello. Welcome back to the podcast. Let's run Facebook Ads, the podcast with myself, your host, Nick Boddington. I hope everyone is well. And and getting great results from your Facebook ads. Today I want to discuss your budget and what your budget should be and really how to determine your budget. I get this awesome. I get asked a lot by all types of companies, all different shapes and sizes, especially when they are starting the rats for the first time, or a very new to their Facebook advertising is understanding what budget you need to put on your campaigns or your ads per day to get the results you need. Now there is a few things that come into this. We have learning phases. We have learning limited that you've probably all come across these sort things because you have seen them in your ads manager now learning limited in learning phase. So what is the learning phase? A learning phase is Facebook's way of trying to understand as much as it can about your business, what your leads are, what your purchases are, how much is costing just everything about your particular ads manager. Okay, so it's trying to understand that we have a pixel on our site. We may have had our cafe, which has our conversion API set up, and we're now Facebook is now wanting to learn. Now let's say you put your get your campaign. You've got three ad creatives, you've got your copy, you set your ad live and you're putting it$10 a day. Now, the problem you've got here is if you if you've never done any advertising and don't really understand what your cost per acquisition is, or cost per lead or cost per purchase, you don't really know how much you should be spending a day because you don't know what it's going to cost. So let's let's say me, for instance, right face costing me 30 pounds of lead. Okay, I know that if I'm spending 10 pounds a day, it's going to take me on an average three days before I get my lead. And the other downside to this is I'm not really giving Facebook enough money to go out and find me those leads. When people say, well, I only I need, I need three leads a day. But they're only spending 10 pounds and it's going to cost them 15 pounds a lead, then they're not going to get the leads they want. So how do we figure this out? Well the easiest part is knowing what on average it's going to cost you to get a lead or acquire, a customer or a purchase. Okay. And you need to then look at the learning phase and how long it takes to exit the learning phase. Now, meta says that it's 50, events that then might be a purchase, that then it might be a lead. It's 50 of those events in a seven day period for you to exit learning phase, and for your ad to stay active. Now, I have seen this go as low as ten, and I've seen it at 25, so it's not set in stone. But let's go. Really with the highest it's going to cost you, it's going to take you 50 events. So if we were to get our calculator out and we go and I would say for my business in seven days, I need 50 events. Now, I know that it's cost me because of the ads have been running for the time. It's 30 pounds a lead. Okay. So if I put 30 in and I times 50, that's going to cost 1500. And I'm going to divide that by seven days. That's telling me I spend 214 pounds a day to get my 50 leads to exit the learning phase. But now as we said, that can happen in ten. So if I've said 30 a day times ten is 300 divided by seven, I might get there, 42 pounds a day. So we don't really know where we are yet. Now, once you've got going, or if you've already got a really busy ad account, then this isn't as much of a problem. Because when you put ads live, meta knows enough about your ads manager and the campaigns you've been running, so you can exit learning phases quickly. Or it might be that I've actually got ads in a lot of my accounts that I'm in learning limited, but it's still producing leads or purchases at the cost I want. But I need to very quickly think about how I can change that creative or that ad to get more clicks, to get more purchases or leads so I can get out the exit, the learning phase quicker. But that is your simple rule of how to actually figure out how much you need to spend. So let's make it a bit more realistic to people who might be having getting leads. Okay, so a lead is cost cost you between 3 and 10 pounds, so to speak on average for most leads. So if we're saying right, on average you're going to get a lead for 10 pounds times 50 is 500 divided by seven. That is 71 pounds a day that you need, or dollars a day that you need to look at spending. So it's a rule. It's a rule that's in place. It's a rule that says advertisers try and stick towards but don't sit there disheartened. Think I haven't got $50. I haven't got 50 pounds of dollars a day to start this. Just start off trying to get some leads in. Okay. You might have to if I, if I was to say, what would you start on a day you could get lucky and spend 10 pounds of dollars a day and suddenly you're getting the leads of the purchase you want, but to really try and expand your ad account. We're here to make money. We're advertisers, okay? We're here to make money. And we need to get as much back from the platform, from the money we put in to the money that we get out. It needs to be as much as possible for us to be able to scale up businesses to whatever our whatever our goals are. You need to have some money behind you, and you're going to have some waste at first, because I've got some new ads running for my own ad account and they're not working. So even though I know the fundamentals of what I should be doing, I'm an expert in this. I still come across scratching head moments of going, why is that not working? Is it a landing page? I'm always trying to figure things out. Why is that working and the other ones not work? And what can I do to the other one to make it work? Okay. So that but that's that's basically the way you need to look at how you can figure out how much you need to spend on your ads to get the results that you want. I hope that helps, and I'll see you in the next one.