How To Find The Most Optimal Facebook Ads Budget For Maximum Results in 2024

finding the most optimal daily budget to maximize the results for your Facebook ad campaigns is extremely important if you set it too low you'll probably not gain enough traction and get enough data coming in to the point where you can actually scale that campaign and make enough money to the point where you can fuel your business with cash flow on the other side if you start too high you'll probably quickly turn unprofitable and the reason for that is you just haven't warmed up a big enough part of your audience to the point where you can

actually convert enough of them at a high enough rate to make up for the money that you're spending on that campaign so in this video I'm going to to show you exactly how to find your sweet spot and find the most optimal daily budget for your campaign based on some really good data that I have right here in front of me and I'm also going to give you a free resource that you can use to just plug in your own numbers and find the exact amount you should start out with and if you are new

to the channel my name is Ura and over the last six years I've been helping over 20 different businesses all around the world getting much better results for their Facebook and Instagram ads and this channel is just simply where I share all my lessons and learnings for free with you guys so if if you want to see more videos and content like this make sure you hit the like button and subscribe to the channel so when you're setting up your Facebook ad campaign you set everything up and you get to the budget and schedule section

and you just can't figure out what to put in as the daily amount that you want to spend there's a few things you need to be mindful of now as I said in the beginning of this video if you set it too low you'll probably not gain enough traction and get enough momentum to actually be able to scale but if you set it to high you'll quickly turn unprofitable so in order to find your sweet spot there's a few few things that we need to be mindful of having enough fresh data coming into the adset

is going to be extremely important for how the algorithm actually optimizes and improves the targeting of your adset and your campaign so just to show you an example of this this is one of my client's ad accounts and as you can see I'm looking at the last seven days and this adet right here that we have running for them is still in the learning phase so you can see that we only have 13 optimization events since the last significant edit of this adset but what we actually need to get out of the learning phase is

50 conversion events or what they call it there is optimization events in the last 7day period so in this example we would need 50 purchases in a 7-Day period in order to get out of the learning phase and the reason for that is that we need volume of data so we need minimum 50 conversion events because that's going to give the algorithm enough data to figure out who are likely to convert in order to find similar people to the people that actually converted from the ads that we have in this adet so we not only

need 50 conion events but we need them in a 7-Day period so in the last 7 days so as you can see the algorithm really values the freshness of the data and not only the amount because if it was only about getting 50 conversion events we could do that in probably a month or two months with a very very small budget but the problem there is that the first conversions that came in in the beginning of the month that's so long ago that it's going to be hard to find people are in the same mind

space and have all the similarities 30 days later so we need 50 conversion events and we need them in a 7-Day period minimum of course of course it's much better to have even more data and more data freshness than that but that's the bare minimum of being able to get out of the learning phase so in order to help you find the specific amount that you should actually put into your campaign I just set up a very simple budget finder and Google Sheets so if you want to get access to this just click the link

in the description and I'll send it to your inbox all you need to put in here is your average order value so the average amount that people spend when you actually get them into your store and the gross margin of that spend so for an example let's say every customer on average spend 100 bucks in your Store 50% of that is actually profit that means the break even CPA or the break even cost per acquisition is going to be $50 so anytime you spend more than $50 you're starting to lose money and when you spend

less than that you're essentially profitable but we don't take into account the fixed cost and the other cost in your business in this example so you have to be mindful of that as well and then also under here we have the target CPA so the CPA you actually want in order to be profitable enough to the point where you can cover all your fixed expensive and you don't have to worry about spending all your money on meta and just breaking even every month so when you're starting your campaign it's more likely that you will have

to actually use the realistic daily Span in order to get out of the learning phase if you don't already know on average what your CPA is going to be then it's very likely that you will have to start out with your realistic daily spend from the adset budget finder here and the reason for that is you need to invest in some initial data to get it into your account your pixel needs to be warmed up and the algorithm needs more data to actually be able to optimize and you also need to figure out what kind

of creatives and offers work for you that's why I would recommend in this instant if you're just starting out to use the realistic da span number as your daily budget for the campaign but if You' already been getting some pretty good results historically and you know that you can get a CPA below your break even pretty consistently in that instance you can start with the ideal span number so this will be the one where you actually focus on hitting that Target CPI and you're confident that you will be able to hit that and in that

instance this will be the amount you need to spend to actually get out of the learning phase so you can play around with this but this is just to give you an indicator of where you should aim to set your daily budget when you're starting out so let's say we want to go with your realistic daily ad span I'll just copy it and paste it over in the campaign right here so just to illustrate to you why it's important to get a lot of data into the adset as you can see here this is one

campaign that we have for one client and as you can see we were getting very unstable results in the beginning here the CPA was getting up and down very inconsistent but as you can see see over time as we started to get more data things are stabilizing from May 4th and onwards we have way more stable CPI and also a lot lower and much better results than we had previously also we're getting a lot more volume here so we're able to scale this is something that is very important to take into account the more data

you can get into the ad set the better the optimization process is going to be but there is a carry out to this which I'm going to cover next so if you have an adset that is in learning limited or you can see that it's still in the learning phase there is something you need to consider here because there's some stuff on the help section from meta that I actually disagree with so as you can see on the troubl shoot section for the information about learning limited they give you a few recommendations of how you

can actually improve the performance to get out of the learning limited or the learning phase the first one they talk about is combining adsets and campaigns so simply consolidating in your Adon so using the budget that you're already spending in your account but on fewer variables so that you have a better optimization process per adset so my recommendation is actually you know for most businesses unless you are at the very high daily budget you should probably consolidate just by having one or maximum two campaigns in your ad accounts in those campaigns probably maximum two adsets

nothing more than that and often you can just use one adset another problem that you could be facing is that your audience is just too small so you're not getting enough people warmed up and you're not coverting enough people so in that case you might need to expand your audience but often times this is not the problem that I see in the accounts that I've audited you know you can also raise your budget but this is usually an issue if you're not hitting your CPA it's very hard to raise your budget if you're not you

know getting that profitability so if you just can't spend enough money on your campaign because you're not hitting that CPA goal what you need to do is pull the levers which is having the biggest impact on your results which is number one your actual offer what are you offering people can you give a better deal can you bundle your products together can you frame it in a different way to make it more effective this is one of the absolute biggest levers under that you have the actual creative so what people actually see in your ads

so the video the image and the text in the ad the headline that kind of stuff has a big impact on your results so make sure you spend a lot of time on figuring out how you can optimize that there's a bunch of videos and resources out there to figure this out but my number one thing is you're not doing enough testing you need to test more you need to do more preparation in terms of research before you actually launch a new test in your ad account that way you will have a higher probability that

you will actually hit your CPA goal as soon as you launch that creative or that new ad and the last lever to pull outside of your ad account is actually the landing page so maybe you're getting enough traffic but you're just not converting enough of them maybe your conversion rate is one or lower you need to at least have a 2.5 to 3% conversion rate for most businesses obviously that really does depend on what you're selling how expensive it is and what's your margin on that product is if you have a really expensive product with

a high margin you could probably afford to have a pretty low conversion rate but but let's say for example you run an e-commerce business you need to at least have a two to you know 3% conversion right at the minimum in order to stay profitable depending on the CPM level in the audience that you're targeting so the next thing they're talking about in the section here is that you can actually raise your bid or cost control so if you're using cost control bid strategies such as cost cap which is now referred to as cost per

assult goal or the RASS goal then you can essentially increase the CPA goal or the C perold goal or lower the RAS goal so that your campaign can continue to spend money and get more conversion events now again the same problem here is if you're increasing your CPA goal you will probably not be profitable anymore and I think this is the problem for most businesses you already set your cost perold goal to a point where that's the maximum you can actually afford and same for the roas SK you can just simply not afford to have

a lower roas SK than that uh so again goes back to what I just talked about you need to pull those three levers the offer the creative and the landing page now this is the section where I disagree with meta so they're talking about changing the optimization event for your adset so instead of optimizing for purchases they say as an example hair you can optimize for add to cart now this is something I strongly disagree with because you want to always optimize for what you actually want because there is going to be a difference between

the people that actually add the card and the people that go ahead and purchase another really important Point here is that learning limited and the learning phase is not necessarily that important in a lot of our accounts we've actually seen pretty good results and profitable results while being in learning limited now I have one theory for why meta is so focused on the learning limited and getting out of the learning phase I think it's simply because they want you to spend more money we also see this in Google ads they're always telling us to spend

more to get more results even if it doesn't result in more profitability for our business and besides that when you're optimizing for the purchase event which is the conversion event that you actually want the algorithm is still taking into account the people that add to card so will still use that data in order to optimize you don't need to have that as your main objective for the campaign in order to get better results so I hope you found this video valuable if you did I would highly appreciate that you leave a like and maybe a

comment below and if you want to get the ad set budget finder you can click the link in the description of the video and I'll just simply send that right to your inbox so you can use it for yourself so thank you so much for watching and I'll see you in the next video