{"version":"1.0.0","segments":[{"startTime":0.0,"endTime":1.28,"body":"Hello. Welcome back to the podcast."},{"startTime":1.28,"endTime":5.8,"body":"Let's run Facebook Ads, the podcast"},{"startTime":1.28,"endTime":5.8,"body":"with myself, your host, Nick Boddington."},{"startTime":6.12,"endTime":7.08,"body":"I hope everyone is well."},{"startTime":7.08,"endTime":10.08,"body":"And and getting great results"},{"startTime":7.08,"endTime":10.08,"body":"from your Facebook ads."},{"startTime":10.2,"endTime":13.2,"body":"Today I want to discuss your budget"},{"startTime":13.4,"endTime":17.68,"body":"and what your budget should be"},{"startTime":13.4,"endTime":17.68,"body":"and really how to determine your budget."},{"startTime":17.72,"endTime":18.4,"body":"I get this awesome."},{"startTime":18.4,"endTime":22.28,"body":"I get asked a lot by all types of"},{"startTime":18.4,"endTime":22.28,"body":"companies, all different shapes and sizes,"},{"startTime":22.52,"endTime":25.88,"body":"especially when they are starting the rats"},{"startTime":22.52,"endTime":25.88,"body":"for the first time,"},{"startTime":26.24,"endTime":29.68,"body":"or a very new to their Facebook"},{"startTime":26.24,"endTime":29.68,"body":"advertising is understanding"},{"startTime":29.76,"endTime":32.68,"body":"what budget"},{"startTime":29.76,"endTime":32.68,"body":"you need to put on your campaigns"},{"startTime":32.68,"endTime":35.68,"body":"or your ads per day to get the results"},{"startTime":32.68,"endTime":35.68,"body":"you need."},{"startTime":35.68,"endTime":38.48,"body":"Now there is a few things"},{"startTime":35.68,"endTime":38.48,"body":"that come into this."},{"startTime":38.48,"endTime":39.76,"body":"We have learning phases."},{"startTime":39.76,"endTime":43.88,"body":"We have learning limited that you've"},{"startTime":39.76,"endTime":43.88,"body":"probably all come across these sort things"},{"startTime":43.88,"endTime":45.72,"body":"because you have seen them in your ads"},{"startTime":43.88,"endTime":45.72,"body":"manager"},{"startTime":45.72,"endTime":48.16,"body":"now learning limited in learning phase."},{"startTime":48.16,"endTime":49.64,"body":"So what is the learning phase?"},{"startTime":49.64,"endTime":55.16,"body":"A learning phase is Facebook's"},{"startTime":49.64,"endTime":55.16,"body":"way of trying to understand"},{"startTime":55.4,"endTime":60.84,"body":"as much as it can about your business,"},{"startTime":55.4,"endTime":60.84,"body":"what your leads are, what your purchases"},{"startTime":60.84,"endTime":66.6,"body":"are, how much is costing just everything"},{"startTime":60.84,"endTime":66.6,"body":"about your particular ads manager."},{"startTime":66.6,"endTime":69.4,"body":"Okay, so it's trying to understand"},{"startTime":66.6,"endTime":69.4,"body":"that we have a pixel on our site."},{"startTime":69.4,"endTime":73.04,"body":"We may have had our cafe,"},{"startTime":69.4,"endTime":73.04,"body":"which has our conversion API set up,"},{"startTime":73.4,"endTime":76.48,"body":"and we're now"},{"startTime":73.4,"endTime":76.48,"body":"Facebook is now wanting to learn."},{"startTime":76.64,"endTime":79.4,"body":"Now let's say you put your get"},{"startTime":76.64,"endTime":79.4,"body":"your campaign."},{"startTime":79.4,"endTime":82.24,"body":"You've got three ad creatives,"},{"startTime":79.4,"endTime":82.24,"body":"you've got your copy,"},{"startTime":82.24,"endTime":84.8,"body":"you set your ad live and you're putting it"},{"startTime":82.24,"endTime":84.8,"body":"$10 a day."},{"startTime":84.8,"endTime":86.6,"body":"Now, the problem you've got here is if you"},{"startTime":86.6,"endTime":90.56,"body":"if you've never done any advertising"},{"startTime":86.6,"endTime":90.56,"body":"and don't really understand what your cost"},{"startTime":90.56,"endTime":93.84,"body":"per acquisition is,"},{"startTime":90.56,"endTime":93.84,"body":"or cost per lead or cost per purchase,"},{"startTime":94.24,"endTime":97.64,"body":"you don't really know how much"},{"startTime":94.24,"endTime":97.64,"body":"you should be spending a day"},{"startTime":97.68,"endTime":98.8,"body":"because you don't know"},{"startTime":97.68,"endTime":98.8,"body":"what it's going to cost."},{"startTime":98.8,"endTime":101.8,"body":"So let's let's say me, for instance, right"},{"startTime":102.16,"endTime":104.84,"body":"face costing me 30 pounds of lead."},{"startTime":104.84,"endTime":108.24,"body":"Okay, I know that"},{"startTime":104.84,"endTime":108.24,"body":"if I'm spending 10 pounds a day,"},{"startTime":108.6,"endTime":111.6,"body":"it's going to take me on an average"},{"startTime":108.6,"endTime":111.6,"body":"three days before I get my lead."},{"startTime":111.8,"endTime":114.92,"body":"And the other downside to"},{"startTime":111.8,"endTime":114.92,"body":"this is I'm not really giving"},{"startTime":114.92,"endTime":118.76,"body":"Facebook enough money"},{"startTime":114.92,"endTime":118.76,"body":"to go out and find me those leads."},{"startTime":118.76,"endTime":122.48,"body":"When people say, well, I only I need,"},{"startTime":118.76,"endTime":122.48,"body":"I need three leads a day."},{"startTime":122.88,"endTime":126.16,"body":"But they're only spending 10 pounds and"},{"startTime":122.88,"endTime":126.16,"body":"it's going to cost them 15 pounds a lead,"},{"startTime":126.84,"endTime":128.92,"body":"then they're not going to get the leads"},{"startTime":126.84,"endTime":128.92,"body":"they want."},{"startTime":128.92,"endTime":130.96,"body":"So how do we figure this out?"},{"startTime":130.96,"endTime":134.84,"body":"Well the easiest part is knowing"},{"startTime":130.96,"endTime":134.84,"body":"what on average it's"},{"startTime":134.84,"endTime":139.88,"body":"going to cost you to get a lead"},{"startTime":134.84,"endTime":139.88,"body":"or acquire, a customer or a purchase."},{"startTime":139.88,"endTime":140.68,"body":"Okay."},{"startTime":140.68,"endTime":143.48,"body":"And you need to"},{"startTime":140.68,"endTime":143.48,"body":"then look at the learning phase"},{"startTime":143.48,"endTime":146.96,"body":"and how long it takes to exit"},{"startTime":143.48,"endTime":146.96,"body":"the learning phase."},{"startTime":147.28,"endTime":150.92,"body":"Now, meta says that it's 50,"},{"startTime":151.32,"endTime":155.4,"body":"events that then might be a purchase,"},{"startTime":151.32,"endTime":155.4,"body":"that then it might be a lead."},{"startTime":155.4,"endTime":158.68,"body":"It's 50 of those events in a seven day"},{"startTime":155.4,"endTime":158.68,"body":"period"},{"startTime":159.0,"endTime":162.28,"body":"for you to exit learning phase,"},{"startTime":159.0,"endTime":162.28,"body":"and for your ad to stay active."},{"startTime":162.52,"endTime":165.0,"body":"Now, I have seen this go as low as ten,"},{"startTime":165.0,"endTime":168.36,"body":"and I've seen it at 25,"},{"startTime":165.0,"endTime":168.36,"body":"so it's not set in stone."},{"startTime":168.64,"endTime":169.72,"body":"But let's go."},{"startTime":169.72,"endTime":175.12,"body":"Really with the highest it's going to cost"},{"startTime":169.72,"endTime":175.12,"body":"you, it's going to take you 50 events."},{"startTime":175.48,"endTime":177.4,"body":"So if we were to get our calculator out"},{"startTime":178.36,"endTime":179.6,"body":"and we go and I would"},{"startTime":179.6,"endTime":183.48,"body":"say for my business in seven days,"},{"startTime":179.6,"endTime":183.48,"body":"I need 50 events."},{"startTime":183.48,"endTime":187.0,"body":"Now, I know that it's cost me because of"},{"startTime":183.48,"endTime":187.0,"body":"the ads have been running for the time."},{"startTime":187.64,"endTime":189.84,"body":"It's 30 pounds a lead. Okay."},{"startTime":189.84,"endTime":195.32,"body":"So if I put 30 in and I times 50,"},{"startTime":189.84,"endTime":195.32,"body":"that's going to cost 1500."},{"startTime":195.64,"endTime":198.0,"body":"And I'm going to divide that by seven"},{"startTime":195.64,"endTime":198.0,"body":"days."},{"startTime":198.0,"endTime":201.44,"body":"That's telling me I spend 214 pounds a day"},{"startTime":201.76,"endTime":204.2,"body":"to get my 50 leads"},{"startTime":201.76,"endTime":204.2,"body":"to exit the learning phase."},{"startTime":204.2,"endTime":207.36,"body":"But now as we said,"},{"startTime":204.2,"endTime":207.36,"body":"that can happen in ten."},{"startTime":207.68,"endTime":211.4,"body":"So if I've said 30 a day times ten is 300"},{"startTime":211.4,"endTime":214.48,"body":"divided by seven,"},{"startTime":211.4,"endTime":214.48,"body":"I might get there, 42 pounds a day."},{"startTime":214.8,"endTime":217.24,"body":"So we don't really know where we are yet."},{"startTime":217.24,"endTime":220.2,"body":"Now, once you've got going,"},{"startTime":217.24,"endTime":220.2,"body":"or if you've already got"},{"startTime":220.2,"endTime":224.4,"body":"a really busy ad account,"},{"startTime":220.2,"endTime":224.4,"body":"then this isn't as much of a problem."},{"startTime":224.4,"endTime":228.4,"body":"Because when you put ads live,"},{"startTime":224.4,"endTime":228.4,"body":"meta knows enough about your ads manager"},{"startTime":228.4,"endTime":232.08,"body":"and the campaigns you've been running,"},{"startTime":228.4,"endTime":232.08,"body":"so you can exit learning phases quickly."},{"startTime":232.36,"endTime":235.4,"body":"Or it might be that I've actually got ads"},{"startTime":232.36,"endTime":235.4,"body":"in a lot of my accounts"},{"startTime":235.64,"endTime":238.52,"body":"that I'm in learning limited,"},{"startTime":235.64,"endTime":238.52,"body":"but it's still producing leads"},{"startTime":238.52,"endTime":240.56,"body":"or purchases at the cost I want."},{"startTime":240.56,"endTime":244.48,"body":"But I need to very quickly"},{"startTime":240.56,"endTime":244.48,"body":"think about how I can change that creative"},{"startTime":244.48,"endTime":248.6,"body":"or that ad to get more clicks,"},{"startTime":244.48,"endTime":248.6,"body":"to get more purchases"},{"startTime":248.6,"endTime":251.68,"body":"or leads so I can get out the exit,"},{"startTime":248.6,"endTime":251.68,"body":"the learning phase quicker."},{"startTime":252.0,"endTime":255.08,"body":"But that is your simple rule"},{"startTime":252.0,"endTime":255.08,"body":"of how to actually"},{"startTime":255.72,"endTime":257.92,"body":"figure out how much you need to spend."},{"startTime":257.92,"endTime":262.48,"body":"So let's make it a bit more realistic to"},{"startTime":257.92,"endTime":262.48,"body":"people who might be having getting leads."},{"startTime":262.48,"endTime":266.0,"body":"Okay, so a lead is cost cost you between 3"},{"startTime":266.0,"endTime":269.68,"body":"and 10 pounds,"},{"startTime":266.0,"endTime":269.68,"body":"so to speak on average for most leads."},{"startTime":269.68,"endTime":274.24,"body":"So if we're saying right, on average"},{"startTime":269.68,"endTime":274.24,"body":"you're going to get a lead for 10 pounds"},{"startTime":274.56,"endTime":277.72,"body":"times 50 is 500 divided by seven."},{"startTime":277.92,"endTime":278.92,"body":"That is 71"},{"startTime":278.92,"endTime":282.48,"body":"pounds a day that you need, or dollars"},{"startTime":278.92,"endTime":282.48,"body":"a day that you need to look at spending."},{"startTime":282.72,"endTime":285.0,"body":"So it's a rule."},{"startTime":285.0,"endTime":286.32,"body":"It's a rule that's in place."},{"startTime":286.32,"endTime":290.08,"body":"It's a rule that says advertisers"},{"startTime":286.32,"endTime":290.08,"body":"try and stick towards"},{"startTime":290.28,"endTime":292.36,"body":"but don't sit there disheartened."},{"startTime":292.36,"endTime":293.44,"body":"Think I haven't got $50."},{"startTime":293.44,"endTime":295.96,"body":"I haven't got 50 pounds of dollars"},{"startTime":293.44,"endTime":295.96,"body":"a day to start this."},{"startTime":295.96,"endTime":298.96,"body":"Just start off"},{"startTime":295.96,"endTime":298.96,"body":"trying to get some leads in."},{"startTime":298.96,"endTime":299.28,"body":"Okay."},{"startTime":299.28,"endTime":302.56,"body":"You might have to if I, if I was to say,"},{"startTime":299.28,"endTime":302.56,"body":"what would you start on a day"},{"startTime":303.48,"endTime":305.8,"body":"you could get lucky and"},{"startTime":307.0,"endTime":310.0,"body":"spend 10 pounds of dollars a day"},{"startTime":307.0,"endTime":310.0,"body":"and suddenly you're getting"},{"startTime":310.0,"endTime":313.0,"body":"the leads of the purchase you want,"},{"startTime":310.0,"endTime":313.0,"body":"but to really"},{"startTime":313.96,"endTime":315.8,"body":"try and expand your ad account."},{"startTime":315.8,"endTime":318.04,"body":"We're here to make money."},{"startTime":315.8,"endTime":318.04,"body":"We're advertisers, okay?"},{"startTime":318.04,"endTime":319.28,"body":"We're here to make money."},{"startTime":319.28,"endTime":322.64,"body":"And we need to get as much back"},{"startTime":319.28,"endTime":322.64,"body":"from the platform,"},{"startTime":322.8,"endTime":325.8,"body":"from the money"},{"startTime":322.8,"endTime":325.8,"body":"we put in to the money that we get out."},{"startTime":326.12,"endTime":327.44,"body":"It needs to be as much as possible"},{"startTime":327.44,"endTime":331.0,"body":"for us to be able to scale up businesses"},{"startTime":327.44,"endTime":331.0,"body":"to whatever our whatever our goals are."},{"startTime":331.52,"endTime":334.12,"body":"You need to have some money behind you,"},{"startTime":334.12,"endTime":335.8,"body":"and you're"},{"startTime":334.12,"endTime":335.8,"body":"going to have some waste at first,"},{"startTime":335.8,"endTime":338.8,"body":"because I've got some new ads"},{"startTime":335.8,"endTime":338.8,"body":"running for my own ad account"},{"startTime":338.88,"endTime":340.12,"body":"and they're not working."},{"startTime":340.12,"endTime":341.72,"body":"So even though I know"},{"startTime":341.72,"endTime":344.72,"body":"the fundamentals of what"},{"startTime":341.72,"endTime":344.72,"body":"I should be doing, I'm an expert in this."},{"startTime":344.72,"endTime":349.24,"body":"I still come across scratching head"},{"startTime":344.72,"endTime":349.24,"body":"moments of going, why is that not working?"},{"startTime":349.24,"endTime":351.88,"body":"Is it a landing page?"},{"startTime":349.24,"endTime":351.88,"body":"I'm always trying to figure things out."},{"startTime":351.88,"endTime":355.24,"body":"Why is that working"},{"startTime":351.88,"endTime":355.24,"body":"and the other ones not work?"},{"startTime":355.24,"endTime":357.24,"body":"And what can I do to the other one"},{"startTime":355.24,"endTime":357.24,"body":"to make it work?"},{"startTime":357.24,"endTime":357.84,"body":"Okay."},{"startTime":357.84,"endTime":360.84,"body":"So that but that's that's"},{"startTime":357.84,"endTime":360.84,"body":"basically the way you need"},{"startTime":360.84,"endTime":363.84,"body":"to look at how you can figure out"},{"startTime":363.88,"endTime":368.0,"body":"how much you need to spend on your ads"},{"startTime":363.88,"endTime":368.0,"body":"to get the results that you want."},{"startTime":368.04,"endTime":370.2,"body":"I hope that helps,"},{"startTime":368.04,"endTime":370.2,"body":"and I'll see you in the next one."}]}