Investing for success
Oct 14, 2016 - GROWTH
Transparent
Olivier Stapylton-Smith

One of the biggest challenges we approached in our previous blog posts was how to spot a winner.

This gave you a good idea of what makes a winning campaign, and what metrics you have to keep your eyes on when you start running.

But we left a very important topic still to be addressed: BUDGET

When you first design a t-shirt, it’s hard to pinpoint exactly how much you should spend. Should you try 3 euros a day, or start with 15? How much should you invest on Page Post Engagement or Clicks to Website? Fear not, we have the answers to these questions!

HOW MUCH?

The first thing we need to understand is how Facebook works with a budget. If you set an initial budget that’s too low for the audience you have, you may be paving the path to no delivery. However, if you set a value too high, you’ll end up wasting your budget.

We’ve seen good results when testing campaigns with a budget of between 5 and 10 euros a day, running for at least 3 to 4 days. Why? Because Facebook’s algorithm takes around 48 hours to optimize delivery within your target, and this gives your campaign time to breathe before you make your decision on whether you should continue or not.

As a reference, look into spending at least 30 to 40 euro to test the campaign before you make the call on whether to run or to end it.

DAILY VS. LIFETIME BUDGET

This is a question that pops up every now and then. Allegedly, both are supposed to work the same way on the back-end, with the system dividing the Lifetime budget by the number of days.

That said, we prefer Daily Budget, since we’ve seen some issues with delivery in Lifetime budgets towards the end of the campaign. Obviously, if you speak to a Facebook rep you might hear that Lifetime makes it easier for the system to optimize, but we have yet to see any difference and we have run a few A/B tests before.

WHAT TO USE

We’ve seen people successfully selling t-shirts online with every option, be it Clicks to Website, Page Post Engagement or even Website Conversions, but we’d like to give you some insight on how to set the budgets for each of these options.

Page Post Engagement (PPE)

As many of you already know, using PPE was (and still is, in some markets) the cheapest way to get some sales. These days, as long as you keep your eyes on the Link Clicks, as previously mentioned, PPE can still be a very valid option for selling custom products. But we tend to use it to validate our t-shirt design within an audience. For this, you can opt for a smaller budget of 5 euros a day.

Clicks to Website (CTW)

With the CTW objective, we advise you to look at a higher value of 10 euros per day. This is a much more result-oriented approach so you can expect the competition to invest more, which is why we advise you to invest more as well. 

Website Conversions (WC)

When using Website Conversions, the budget should be at least 10 euros per day. Be careful with the Website Conversions objective if you have just started using the pixel, as this tends to turn your campaign into a very expensive version of CTW. Wait for the pixel to gather data from your campaign visitors, and only consider it then!

For an overview, we have compiled this information into a single flow-chart, for your reference:

Flow

BUT I WANT TO SPEND MORE...

Now, let’s say, over time you become more confident. You already have a nice budget to comfortably invest , and you want to increase your initial ad spend. Instead of pouring all your budget to a single Ad Set, split your targeting into several Ad Sets, and divide your budget accordingly. You can split it by age ranges, gender or whatever parameters you feel represent a relevant split in your audience; even different interest combinations work. You can then keep your eye on the results and readjust your investment for every specific Ad Set!


So, let's have a quick recap on all the points we covered:

  • Using Page Post Engagement - Start with 5€ a day
  • Using Clicks to Website - Start with somewhere between 5 to 10€ a day
  • Using Website Conversions (Only when you already have at least 50 purchases) - Start with 10€ a day
  • Always let your ads run at least 48h, to allow the system to optimize
  • Want to invest more? Split your audience by Age, Gender, Interests or any other criteria, and spread the budget through the different Ad Sets.
  • Save our flowchart for future reference

Do you have a different approach when it comes to budget? Let us know on the Moteefe Hangout.

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