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How to Calculate Your Advertising Budget for Facebook?

Determining budget advertising campaign in Facebook, it should be noted that 3/4 of the target audience will not be covered by advertising.

Facebook is constantly expanding its advertising functionality, which are the main types of Sponsored Stories and advertising positions (Promoted Posts). December is the main period of the year for British Marketers, because on Christmas lots of people buy clothes, electronic goods etc., So it is very important to target only those people, if you are planning to launch your advertising campaign in December. It takes into account four main types of data: the amount of the target audience, the frequency of display ads, CTR and bid.

1# Target audience

A Target audience feature of Facebook provides data on the volume of the target audience. Therefore, prior to settlement of the budget it is necessary to determine the segment of the audience that you will target from the various options. The most common of these are: location, age, gender, marital status, and different kinds of interests. These user profiles to include a filtering tool for creating ads on Facebook. In it you will be given the recommended range of rates depending on the volume of the audience, and targeting settings.

2# Amendment to fake accounts

Some users have multiple accounts on the social network, there are fake accounts, and they are within the scope of the target audience. On average, according to British experts in marketing, advertising is broadcast 25% of the designated users, so the amount of target audience should divide by 4.

3# Average frequency to display ads

How often your average frequency of display ad – 4-5 times a user. Index depends on the volume of the audience. If the advertisement will be displayed more than 100,000 users, it is desirable to set the frequency in the range 1.5-2 per person. In case of small audiences (less than 10,000), the frequency of the campaign can be 15-20 times per person. Multiplying the adjusted volume of the audience to figure how often the advertiser receives the total number of page views for a particular day.

4# The estimated CTR

The estimated CTR (click-through-rate) depends on several factors, including the quality of the text of the ad, the amount of betting industry advertisers, etc. (For example, the advertising of the category “Travel” higher CTR, than the category “Health”). Advertisements direct response has a higher CTR, than related to brand awareness. The “social” product or service, the higher can be CTR: 0,04% for advertising, travel-related, 0.10% for advertising or contest with prizes. The lowest acceptable CTR advertising on Facebook can find the record in the 0.015%. Multiplying the estimated CTR on the total number of page views for a particular day is determined by the number of clicks per day.

5# Monthly Budget

While calculating the monthly budget results from the previous paragraph is multiplied by 30 or 31, depending on how many days are in each month. The resulting figure is the number of clicks per month. Multiply by the number of clicks on the recommended network Facebook stake, the advertiser gets a rough monthly budget. It can be calculated in several variants of the selected rates (from lowest to highest and intermediate).

Conclusion: Presented methodology is not the only one. Perhaps you have your own ways of determining the budget in the social network.

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