So now let’s get into the nitty gritty, how much is this gonna cost ya?

Well, it depends!

We generally recommend brand’s to spend 20% of their monthly revenue on advertising.

So, for example, if you’re pulling in $3,000 a month, then you could start advertising with $600 a month. This will allow you to at least set up some retargeting campaigns to make an efficient, non-leaky, marketing system because you’re retargeting those web visitors and social engagers that need that extra attention to come back to your site and purchase.

Of course, you can start with a larger or smaller budget as well.

If the 20% rule was shocking and you’d like to start advertising at a smaller scale, then we recommend targeting your lowest hanging fruit. What does this mean?

Think about who your hottest leads are currently, they’re going to people that have added a product to their cart, or even initiated a checkout, but dropped off right before buying.

You’re (hopefully) already sending these people abandoned cart emails, but people need multiple touch points before making a purchase, and that’s where your lowest hanging fruit ads come in. We call this type of campaign a Bottom of Funnel (BOFU) retargeting campaign, because we are retargeting those hot leads who are at the bottom of the funnel. 

For our BOFU campaign, we are generally retargeting people who have viewed a product or added to their cart within 7-30 days (the range will depend on how large your retargeting audience is – you’ll need to skew toward the longer day range if you’re a smaller company with less website traffic – because Facebook will need enough data to optimize your campaign and exit the learning phase).

We also use this catalog to retarget our previous purchasers from 30-60 day range (generally you want to give them time to consume the product before reminding them it’s time to restock!), as we all know that it is much cheaper to convert an existing customer than a brand new one, so use some of that small budget to ensure you’re increasing your life-time value (LTV) with this retargeting ad group.

But enough with the set up, let’s get back to the main reason we’re all here, the advertising cost!

So, for those of you who need to start with an extra small budget, you’re going to run this one campaign only, and set your daily budget to $5-10 to start.

This may be enough, you may need to up it slighting to exit the Facebook Learning phase, but this means you’re only spending $150-300 month to massively reduce your abandoned cart rate and increase your overall conversion rate!

Pay close attention to your ROAS with this campaign, you want this campaign to at least break even, but we generally see the highest return on ad spend (ROAS) on this campaign overall.

Be sure and check out our notes above on how to make these catalog campaigns higher converting using eye-catching frames and imagery!

Say you got some investment or money bags ready to go hard on your social ads. Well, in this case, the skies your limit! We still recommend starting with less than half of your target monthly budget so that you have the ability to scale the right ad sets and campaigns and trim the fat, rather than having unproductive ad sets spending budget.

With a budget over $2K a month, you’re generally able to create a full marketing funnel, meaning you can set up retargeting campaigns and prospecting campaigns – where you’re targeting and bringing in new leads into your facebook marketing funnel.

Though, it’s dependent on your niche, we find any less than this makes it too difficult to optimize your prospecting campaigns as there’s not enough budget to gain enough conversion event data that Facebook needs. Also, it’s difficult to do proper audience and creative testing under this mark.

With a budget over $2K we recommend spending 70% of your budget on prospecting for new customers and 30% of your budget is spent on retargeting.

You generally want to set your prospecting campaigns daily budget at least 3-4 times your target cost per acquisition (CPA) as well.

Once you’re hitting break even or better, it’s time to start scaling your campaigns. We recommend scaling your Facebook ads budget by 20% every 3 days or so, just as long as your ROAS and cost per purchase (CPP) stay steady, but no more than 50% in a 3-day period or you could cause the algorithm to go out of whack.

So, there you go. How much does Facebook advertising cost?

Well, it depends.

You can spend as little as $150 on solely BOFU retargeting, or really as much as you want!

Remember, we recommend 20% of your monthly revenue as your ad budget, and at least $2,000 a month if you want to set up a full Facebook funnel system – meaning, retargeting existing audiences as well as prospecting new audiences.