Welcome to Let's run Facebook ads with me, Nick Boddington. This podcast is your go to for mastering Facebook ads. But as you know, success doesn't stop at the ad itself. We'll 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 dropping 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. One question I get asked all the time is when should I increase my ad budget? Should I be leaving it at the level or up? How should I scale? How quickly I should scale? This is a question that we get all the time in our community. So this question here is from Zana. Hi. I've recently launched a new ad, and on day one and two, I got three leads each for 10 pound daily budget. Yesterday, day three, I got one lead. And today, so far, day four, I've had one lead. have a 3% CTR and 45% CVR on the landing page. When should I increase budget and by how much? So this is just one of the questions we get asked in our school community. The Facebook Ads clinic, where we have question above question every single day. People are asking questions about Facebook ads, where myself, my experts, can answer them as quickly as possible so we can make your journey to Facebook advertising as smooth as possible. And also in this classroom you have our Facebook Ads Masterclass. So if you're starting out in ads and you want to make sure that you are doing this the right way, This module has everything you need to know to get started effectively. so click the link in the description. you can join this community for free. But let's get into it. So if you have a look here on the spreadsheet, I'm going to talk you through what Zana has asked and how we can effectively give her and yourselves the answer. When you are running ads on a small budget let's have a look. Hey, while I've got you, I just wanted to ask. Would you like me to go into your ads manager and actually see what's working? Because I bet your ads aren't broken and I bet we can fix something. There's a reason our top clients stop guessing and start scaling. So if you've got campaigns that are burning cash, or you're having trouble barely even breaking even on them, let's have a look and let's see what we can fix. 100% no fluff, no sales pitch, just a pro-level ad review. So book your 30 minute free Facebook ad review session and walk away with some instant wins. Go to the Ads Clinic icon and book your call today. Do it now before you forget, but make sure you come back to listen to the rest of the podcast. Enjoy! So we've got our chart here Budget. She is spending 10 pounds a day. We've got day one day to day three and day four. So it's very very early stages. But we are in that learning phase at the moment where we published an ad and meta has gone to find this low hanging fruit. So in one of the last videos just above here, you'll see where we're talking about low hanging fruit and the things that we need to look for when we start an ad. has published her ad content gone out there, and meta has gone to find its audience. Okay. And you can see very, very good results. Three leads on the first day, three leads on the second day. But then things drop down on day three. On day four. Now, the reason this happens is because meta has found its low hanging fruit. This is what we classed as these bits. It's found the people ready to buy straight away. They'd either seen content that is onions already worked with, or they're already so high up on the ladder by looking at other things that are out there. But the minute they see the ad, they are in and they are buying, or that for this particular reason they're in and they're converting that lead. Okay. On day three and day four things drop down. So this is more realistic. And what we are doing is we don't have much of the low hanging fruit. We are looking the realistic cost per lead moving forward. And we need to have that so we can understand how our lives are going to perform now and into the future. So this is more realistic and we're looking at what, 10 pounds a lead per day. Average click through right here is is the CTR. So how many people see the ad and click through 3%. And then who click through to the landing page from that 3%, 45% fill in their details and become a lead. So we're looking at a very, very simple funnel here of we've got the ad which leads to a landing page here. And then then people fill in the landing page form here. So at this point see the ad, we've got 3%. And then 45% fill in the full. Really really good statistics have all of this at the moment I think is really good. Our average lead cost is 5 pounds. Click through rate 3% conversion rate on the landing page 45, which is really, really good. That's high. On average we're looking at 20% for a good landing page. So this is doing really, really well, which is probably why it's on these Austins questions. As a, you know, a beginner on Facebook as to when and how should I increase my budget. I've detailed a few questions here. Let's work through these. So when should you increase the budget? When results are consistent not just one day, but you've seen good results for 3 to 5. Now if we look up here she's been running these for 3 to 4. She posted this question seven days ago. It doesn't say on here. It was seven days ago. And I looked at that. so by now she's going to start getting some more realistic data coming through if she's on her 7 to 9 days. And we are still looking at one to maybe it's going up to two and then maybe one again, we're looking at a nice consistency of, know, 5 to 10 pounds per lead, which means that with these other conversion rates going on at 3% click through rate and a 45% conversion rate, I would definitely be looking to increase. But how quickly do we increase and by how much? Are we looking for stability or improvement day by day. Now if you're going to scale your account, you must be under the understanding that it is going to go back into a bit of a learning phase. we don't want that to happen, but it is going to happen. So we've been spending our time here. Now the chances are very likely the Zenia is going to be in her ad learning phase. So even if she is on like day 7 or 9, with the spend she's got and the amount of leads she's got, she's still going to be in learning phase. Meta may have put her ad to active and not into learning. If it finds that it is speaking to the right people at the right time and they're coming through consistently, it might say, hey, I've learned who your audience is now I'm going to bring those people through and we're going to put you to active. So you're no longer learning. I'd say that she probably is still in learning phase now. The way it works for a learning phase is that meta wants, 50 conversions in seven days. So 50 conversions, which is a lead in seven days. And then how much is this going a week or so we're going to be talking about 10 pounds, lead on average. And she needs 50 of them. So that's 500 pounds. So we're going to be looking for 500 pounds, which is a total she'll need to spend to get 58 divided by seven days equals 71 pounds a day. So she would have to increase if we're going to go. I met her stats. She'd have to spend 71 pounds a day. So 70 pounds a day is what she'd need to spend to exit learning face. But accounts do leave early learning face long before they have 50 conversions, and it's still not the end of the world. There's another video shortly on that. You can stay in the learning phase and make money. I've got plenty of clients are on small budgets spent the learning phase, and they are still able to grow their business. So we discussed learning phase. She's looking for stability or improvement. She wants a bit of both. And 3 to 5 days is the amount of time we need. So how to increase budget gradually or meta says that we need to increase budget by 10 to 20% every 2 to 3 days. they recommend this because they believe that your ad won't go back into learning if you do it 10 to 20%. I've used this experiment on plenty of counts, not that I've seen the ad go back into learning when I've upped the budget by 10 or 15%, but I know that lead cost goes up, and the amount of leads goes down over the next 24 to 48 hours before it finds stability again. Now, depending on how close you are to the one needing to get these leads in, it is one of the things that we just have to go through when we are increasing our budget. So accounts I work in that I'm spending thousands a day, and we know that the day cost is 25 pounds per lead and they're spending 3000 a day. I know that if I increase their budget even 10%, it will make the account unstable for about 24 hours. And I know that by working with those accounts, I know how to work those accounts. I'm confident when I'm doing so, but as a rule of thumb, I will stick to 10 to 20%. Don't panic 24 hours into that because it may of pause your leads, or it may have put your lead cost up, but it should become stable again. So you can just increase that by 20% every 24 hour period, every maybe a bit longer, 72 hours. But it could cause the ad set to go into the learning phase. And if it doesn't say that it's in the learning phase, you might notice that the account has just become a little bit unstable. If we look at the mistakes that people make, increasing budget too fast is a big one. People just get excited. They're spending 10 pounds a day and then they wake up to 100 pounds a day. Not something that can happen and it can work. It's usually how how big your Cahoon is, are to say whether you're willing to go through that 100 pounds day wastage. If it fails, or if it becomes unstable as it grows again. I would say with people with a small budget, I would say you stick to the 10 to 20% when increasing. Scaling, losing ads, throwing more money at it won't fix an app that isn't working. If an ad is not working, then you can't just put more budget into it to hope that it finds a better audience. You need to put more creators in there and test more creatives. finding one that works. Looking at similar results that we've got here in front of us and then scaling accordingly, ignoring creative fatigue. Now one of the best ways to look at crit, creative fatigue is, over frequency. And the increase in your cost per lead. So if in this example, the cost per lead is an average of, let's say it's 10 pounds a day and that starts going to 12. And then maybe 14, 15, 17 it starts getting more expensive. You'll usually see a synergy between amount of people it's reaching and the frequency. And then the impressions. So if we're reaching 100 people but our impressions is 500, that means that the people we've reached, those hundred which are unique have seen the ad five times, which gives us a frequency of five. So 100, the frequency of five equals 500 impressions. Okay. We would need to really scale that back down again. I'll say as an example we don't say with 100 people, but it's an easy to understand example. So we need to scale up back down. But we need our frequency to be about 1.5 at least underneath to okay to be comfortable. As we're starting to scale, we're starting to put our budgets up and our reach has stopped. So message decided, no, I'm only going to reach this amount of people are frequency will start going up, which means that the same people are seeing our ad over and over again, which means that only cost will probably start increasing as well. And last one here. Not giving it enough time to get data. I do hear of people coming to my community and saying I turned an ad on yesterday, what metrics should I be looking at? It's far too soon. I would publish your ad, go away for 72 hours, come back on the fourth day and see what the results like. And I know that's hard because you're basically turning everything over to meta and just keeping it. But as long as you know that you're going to spend 20 pounds a day, 60 pounds over those three days, it may do what you want it to. It might not. You just need to know that you have to spend some money to go into testing. that's what I would like to basically say about increasing your budget for this question here. I hope that helps, And remember, if you need help with anything to do, the ads, click the link in the description below to go to my school community completely free. can help you out there. See you in the next one. Thank you for joining us again today. 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. You.