Tag Archives: Budget

How to set the Budget for a Facebook Campaign

7 Jun

Lately I´ve been dealing with an uncommon issue:

one of my clients didn´t know how much S/he would be willing to invest in order to run a paid campaign on Facebook.

I googled my problem several time but I couldn´t find any satisfactory answer. So then I chose to collect as many information as I could and try creating my own formula.

I´m pretty satisfied with my result, so I decided to share it here, in my blog.

The first think you´d to do is to calculate the absolute range for your ADS.

Ex.: If you want to run a paid AD over the Italian territory. Your range is 16.000.000 people.

Once you get the absolute range you can start targeting.

Ex: Target only Man, 18-24, Single, Interested in Football. Your new range is now 8.000.000 people (-50%).

The third step is to define an average CTR that you will use in order to calculate your budget. The average CTR (on Facebook), in my experience (this number may vary a lot, depending on product, market, target, etc.), is between 0,05% and 0,1%. So let´s set an average CTR at 0,075%.

You can now multiply your effective range (8.000.000) people times 0,075. The results (600.000) is the forecast of the clicks you´ll receive by running the AD.

Finally multiply your forecasted range (600.000 in this case) times the CPC that Facebook applies for your target (0,20 Euro in my case). The result (12.000 Euros in our example) is the actual budget you should suggest your client to invest. You can now add a 10% to feel safer and run a test period.

Any suggestion? Feel free to add your feedback, suggestions or offenses here below in the comment box!

Words Cost Money

30 Nov

Words do cost a lot.
When we write something, we want someone to read it. But people like to get straight to the point.
Nobody has time to lose. Time is money. Twitter taught us that 140 characters are (pretty) enough to express ourselves.

Whether you’re trying to tell a story, to report a news or to sell something, weigh your words and don’t waste your readers’ attention.

Let’s do an example. If you pay 0,10 € cpc, every extra word, every useless adjective or adverb, you lose 1 reader. So think about it… are you willing to pay 1€ for 10 words that don’t add any value to your post?

I won’t be.

Here’s a useful exercise you can do to improve your style:

  • Think about your USP (just one thing you’ll focus your post on)
  • Draw a map with all the related topic you’ll touch in your post
  • Write your post on a piece of paper
  • Cut down all the adjectives
  • Shorten the sentences

Invest your time, don’t waste your readers’ one!

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