A budget is primarily a means to an end, not the end itself. Therefore, you do not strive for the cheapest indicators if they do not bring the desired result in the form of an effective target action.
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To forecast the costs of targeted or contextual advertising, you need primary data and an understanding of CPA – the cost of a target action.
☝️ This is why different types of advertising campaigns, creatives and audiences are tested.
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At the same time, Facebook Ads Manager must have time to learn from the results obtained to stabilize the CPA indicator. The learning period depends on how quickly the campaign gains 50 results determined by the goal selected in the advertising account.
Along with the CPA value, it is important to understand the desired number of target actions for a certain period. So, based on these indicators, you can already determine the advertising budget😉
✔️ Such tests need to be carried out for each project separately. Simply using the experience of competitors from your industry without a detailed analysis is inappropriate, because each company will have its own characteristics at different times: from the goals set, objectives and characteristics of the target audience to the nature and level of competition, the availability of internal resources and the influence of external market factors. All this is taken into account in the strategy of promotion on social media.
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Remember that the advertising budget is a flexible value that can change depending on the ROMI – the return on marketing investment.
Therefore, it is very important to constantly analyze the results of current campaigns and plan new ones for launch in order to timely adjust the situation and achieve maximum efficiency.