Market, Scale, Grow: Facebook Ad Marketing Strategy for Teacherpreneurs

195 | Is $20/day enough for my FB ads? [💡 FAQ]

• Jenzaia

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In this episode, we discuss if a $20 daily budget for Facebook ads is sufficient.  I break down costs associated with different ad types and how your goals and audiences impact these expenses. 

Budgeting for your ads is a crucial part of the success formula when running ads.  Make sure your budget is on target!

In this episode, we'll chat about
✨ the three primary ad types and analyze of costs associated with each type

✨ how target audience (i.e., warm vs. cold leads) factors into your budget

✨ my recommendations for minimum budgeting per ad type

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Speaker 1:

Is $20 enough to run Facebook ads? Hey, I'm Denzea. I am a Facebook ad strategist, and today we're going to talk about if a $20 per day budget is even enough. So, honestly, my answer is going to be yes, absolutely. $20 per day is plenty for your ad spend budget. I think I used to say that 25 was the minimum, but I actually run campaigns for clients all the time with ad budgets as low as $5 per day. So let's dive into how you're going to determine your budget and what it needs to be to have success.

Speaker 1:

The first thing you need to look at is your goal. The more you're asking of somebody, the more expensive it is to get them to do that. So the three primary types of ads that I run are lead generation ads, sales ads and visibility ads. Lead generation ads we are asking someone to click on our ad, go to the landing page and sign up for some sort of freebie so we can get them on our email list. Sales ads we're trying to sell something. And then visibility ads we're promoting some sort of content so that we can become more visible. This is not the order of the expensiveness, though, as I'm sure you can imagine, the sales ads are going to be the most expensive. It takes the most money to get somebody to actually buy something, because it's the biggest demand that we're asking. The lowest demand and therefore the cheapest ads are going to be the visibility ads. I can usually get someone to look at a blog post or listen to a podcast episode for anywhere from five to like 25 cents per person. But if we're selling something, it's going to cost anywhere from $5 to $500, depending on what that thing that we're selling is. If it's a $50,000 coaching package, these ads could be $500, $1,000 per person to get that person to spend $50,000. If it's a $27 product, we're looking closer to that $5 per person rate, right? So, on this, cheapest like the cheapest ads are going to be those content visibility ads at a couple of cents per person to get them to do the thing we want.

Speaker 1:

Lead generation ads, typically anywhere from 50 cents to $3, depending on. Is it just a freebie download? Is it a webinar? Are we asking people to actually need to do something like sign up for a call? It also depends on the audience. Some audiences, like consumers, are going to be much less expensive than getting a business owner or a ceo to sign up for an email list and then the sales ads are going to be the most expensive.

Speaker 1:

That helps to determine our budget because those content visibility ads, because we can get people doing the thing we want for relatively cheap. We don't have to spend a lot of money. One or two dollars per day is usually sufficient to get enough people doing what we want. That Facebook isn't going to shut us down. They don't shut you down. They put you into like what is it? Learning limited jail, if you will, and so if your ad is hit with the learning limited status then that basically just kind of stunts the growth of your ad and makes it a little bit more challenging to get results. But with visibility ads, a budget of one or two dollars per day typically is enough to avoid the learning limited.

Speaker 1:

With lead generation ads, which are more than 90% of the ads that I'm typically running, lead generation ads can be anywhere from five to twenty five dollars per day. We have success with that five dollar range and then just growing it upwards. Sales ads I would definitely say your minimum is going to be like $20 per day and the more expensive your product is, the more expensive the thing you're trying to sell is, the more you're going to need to spend, but there's no like ceiling. The second factor that comes into it is who are you promoting to? Are you promoting to warm audiences, people who know you've interacted with you, who have shown some sort of interest in you or the product that you're promoting? Have they shown some sort of interest? Or are you promoting to extremely cold audiences? Typically, cold audiences are going to be more expensive than warm audiences. But let's break this down into the three different types. So visibility, lead generation and sales ads. Visibility ads we typically see very similar costs to get a piece of content in front of both a warm and a cold audience, because it doesn't take it's not asking a lot, it doesn't take a lot for somebody to do it, and so these are relatively inexpensive ads. So there isn't a huge variation between warm and cold audiences.

Speaker 1:

I typically focus primarily on cold audiences for this as a way to grow our audience, as part of what I call the waterfall strategy, where we start by having them see that visibility ad and then they are added into, like waterfall into a bucket of people to start seeing the lead generation ads so that they can get on the email list and then they waterfall into a sales ad. It's kind of like a slinky effect, like you do this thing and then down to the next step and then down to the next step. But my primary target typically is cold audiences and I don't notice much of a difference between the cost per view for warm audiences and cold audiences for a visibility ad. The second type of ad, our lead generation ad, where our goal is to get somebody onto the email list. You will see a bit of a difference between warm and cold audiences if you're promoting to them. Because warm audiences some of them will already be on your, some of them will already be on your email list and they also fatigue easier because we like we've already got people onto the list. It's a smaller audience and so that can actually drive costs up. So typically what we see with lead generation ads is that the cost starts low for your warm audience and then grows quite quickly. Once the audience is fatigued and they've all seen the ad and nobody's interested in signing up for your freebie because they either have already or they're just not going to do it. And cold audiences, the cost will stay more consistent. So it's going to start a bit higher than the warm audience cost for a lead generation ad would start. So if we're talking about like 50 cents and 75 cents, the cold audience is going to stay more stable for significantly longer, and so I do like to promote lead generation ads to warm audiences because it's a really good way to collect those people who haven't signed up yet, might be interested in a new offer or found us through our visibility ads, and so they haven't actually ever interacted with the lead magnet and this could be a way for them to do that, and so I do like to spend some money on warm audiences, usually about $5 a day, and then the majority of the budget so five, ten, fifteen, twenty dollars per day would go to lead generation ads to cold audiences as a way to grow your email audience, your email list, with new people who aren't already in your audience. The last type of ads are going to be your sales ads, and I actually don't typically run sales ads to cold audiences.

Speaker 1:

I very, very strongly believe that to see a sales ad, you need to have performed a trigger action, so that could be going to the sales page. It could be clicking on a button in an email, it could be visiting a specific landing page or blog post, something that shows you as the like, the person, as a consumer, has done something that shows they're interested in the product you're selling. I don't believe that we should be promoting just blindly to anybody unless you're like a huge name, old navy, walmart, target. Most people have heard of these companies and they can probably promote to like anybody. But the types of businesses that I work with, these teacher businesses I really really strongly believe that there should be some sort of trigger action and it's better to get these people into your world and into your orbit with visibility content or lead generation ads and to save the selling to your very, very, very warm audience. In this case, similar to lead generation ads, warm audiences are definitely going to be cheaper than cold audiences and the more expensive the thing you're selling is, the bigger the discrepancy is going to be, as a product that you're selling gets more expensive. Cold audiences will get significantly more expensive to sell to as well Warm audiences. If you've warmed them up properly. You've done the email promotion, you've done the launch event, you've done all of those typical activities in the sales cycle to make sure that your audience is ready and wants the thing you're selling. Warm audiences can be relatively cheap to target sales ads to and to get the sale from, because they're already warmed up from all the other things that you're doing, but they're still going to be more expensive than just getting someone on your email list. The last thing that there is to consider about your budget is how big the audience like, how many people you want to promote to.

Speaker 1:

So in the ads manager you set up a campaign. The first thing is the campaign level, and that's where you set your objective. What type of ad is it? Is it a visibility ad, a lead generation ad or a sales ad? And actually, for this piece of the puzzle, it's the same. I would say it's the same thing for all three different types.

Speaker 1:

The budget advice I'm about to give is going to be the same across all the different types. So we have campaign. That's where you pick your objective visibility, lead generation, sales. There's other options in there as well, but those are the three we're talking about. And then you have the ad set level and this is where you pick the audiences that you're going to be promoting to. This is where this is the information that I use to also determine the budget I like to have at least $5 per audience, per ad set, and so if I'm going to be promoting to math teachers is one ad set and then a separate ad set. I'm going to be promoting to fourth and fifth grade teachers and then another ad set I'm going to be promoting to fourth and fifth grade math teachers.

Speaker 1:

Now, that last one is very, very specific. I don't typically recommend it, but let's just pretend for a second. I have my math teachers, fourth and fifth grade teachers, and then fourth and fifth grade math teachers. These are my three audiences. I want to have at least $5 per audience so that I can promote and I have enough budget to be promoting to these different audiences. This is the same on all of the different ad types, each of those ad types. You want to have that minimum budget available. So, for example, in visibility ads, you're going to want to have at least one or two dollars per ad set.

Speaker 1:

For lead generation ads, at least five to ten dollars per ad set and then for sales ads, 20 plus dollars per ad set to ensure that that audience is getting enough money spent on them that Facebook can actually do its thing and push the ad out to enough people to have success. So the order that I like to introduce audiences, typically for lead generation ads, would be warm audiences first, lookalike audiences second and then expanding into demographic based or interest based audiences third. Right now I'm really loving advantage plus audiences. So I will typically compare a lookalike audience using the original format against a lookalike audience with advantage plus turned on. I will play those against each other and have five dollars per per audience and then after two or three days I'll go back, I'll look at how they're performing and I'll turn off the ones that aren't performing best. So if I had $20, I usually will set up like eight different audiences at $5 a piece. So that's actually $40 that I'm spending a day. And then after two or three days I go back in and I go okay, these four performing best, best and I can turn off the lowest performing audiences. So that way I know for sure that the budget that I'm spending that $5 or $20 or $100 that I'm spending is being spent in the best possible way.

Speaker 1:

So to answer that question is 25, is $20 per day enough for ads? Yes, absolutely, depending on what type of ad you're running, depending on the types of audiences you're running, whether they're warm or cold, the type of ad, whether it's visibility $20 per day for a visibility ad is huge, $20 per day for a lead generation ad is perfect, and then $20 per day for a sales ad is bare minimum. I would say so. And then the last piece is how many different audiences do you want to promote to? Just your warm audiences? You need less money. If you want to promote to a much wider variety of cold audiences, then adding to that budget is is the choice. So I hope that this was really helpful and thank you so much for being here. I'll be back next Saturday with a brand new Saturday strategy session.