There are so many components that go into the backend of running ads on Facebook. And one of the most important components is figuring out how budgeting your money works. It’s even more important if you’re an agency like One Thing and manage clients’ money. We’ll be honest, it’s a little tricky at first but once you get the gist of it, it’s a breeze if you’re one of our gurus. Well, unless Facebook decides to throw in another one of its new rules and totally mess up your groove. But until that happens, here’s how things work!
It all starts with deciding on what you want your daily budget to be. That is the total amount you are willing to spend on your ad set. Along with the daily budget, is something called a lifetime budget. This is the amount you’re willing to spend over a duration of time. Then there is your daily spend, which is the amount you actually end up paying on the ad set. Facebook considers the daily budget to be just an average number you are willing to spend. (Most times you won’t spend all of your budget.) There are certain days where there might be better opportunities to see greater results, so Facebook might spend up to 25% over the daily budget. Basically, this means you can spend more than your daily budget on some days, and less on others. Here’s an example.
In this example, the daily budget is $10. But you can see the spend varies throughout the week. Depending on the opportunities Facebook sees, determines how much they will spend. But no need to worry, again they will only spend up to 25% if need be. And it will always average out to be within your daily budget.
Facebook does like to keep you on your toes every now and then, but they want you to get the most out of what you’re putting in. So, with that said here are some things to keep in mind when it comes to ad budgeting. A calendar week is Sunday to Saturday. If you did decide to start an ad not at the beginning of the week, Facebook will prorate the total calendar week spend. The same thing goes for if you want to change your budget throughout the week.
And even though a lot of work is done for you, it is key that you always keep an eye on your ads constantly just to make sure things are running smoothly and numbers aren’t running wild.
So, there you have it! A piece of cake, right? Okay okay, it will take time to fully understand the powers of Facebook but once you do, life becomes ten times easier. But hey if you are wanting to delve into the world behind the ads, and need a helping hand, that is just One Thing we do…contact us today to learn how we can help your company!