 What's going to go is welcome back to another video. So today we're going to be discussing Facebook ad budgets. A really popular question. In fact, I get asked is how much do I need to spend on Facebook ads in order to see some results is five pounds enough is 10 pounds enough. The budget you pick can actually dramatically affects the results of your ads. So in this video, we're going to be doing low budgets versus big budgets. And then when you should and when you shouldn't be using them to ultimately make sure you're spending your money in the right places at the right time. Before we jump into it, though, two very quick things. Number one, if you enjoy the video and you learn something new, all I ask is you hit that like button. And number two, if you want to see more of my content, please make sure you drop me a sub as well. And for that being said, thanks for tuning in. Hope you enjoy the video. Hope you learn something new and let's jump straight into it. So first thing I want to discuss is actually what your budget is and what it does. I know it sounds simple and it sounds stupid, but it's important that you know this and your budget. All that essentially is is a tool for how many people your ad will reach. So if we work on, let's say a 10 pound CPM because it's easy to work out. A CPM is a cost to reach 1000 people or essentially for your ad to be seen by 1000 people, a CPM by its definition is a cost per 1000 impressions and impression is when it actually pops up on somebody's newsfeed and it's on their screen essentially. So so if you're achieving on average, let's say a 10 pound CPM, you spend 10 pound, you're going to get 1000 impressions. If you spend 100 pound, you're going to get 1000 times 10. Which is 10,000 impressions. And that essentially is all your budget does. It doesn't necessarily mean you're going to get more purchases. It just means more people are going to see your ads. So the effect your budget essentially has on your Facebook ads is the more people you reach, the more Facebook learns, the more it learns, the more efficiently it delivers your ads. Then the more efficiently it delivers your ads and essentially the more results you should in theory get. However, that being said, there's still time in place for using smaller budget versus bigger budgets. For example, if we work on Facebook's logic and Facebook's advice, this is the guidance they give themselves, they want an ad set. They say ad sets optimize on an ad set level and for an ad set to deliver optimally, it needs to be achieving 50 of its target conversion per week. So if you're optimizing for purchase that is your objective, unless your ad set is getting 50 purchases per week for that individual ad set, it's not going to be delivering optimally. So essentially what this means, if we take the average cost per purchase of around 10 pound which is pretty reasonable to be honest, at least it is in my experience for the type of products I sell, then for that ad set to deliver optimally, you need to spend 10 pound per purchase, you need 50 purchases per week, essentially for an ad set to deliver then optimally, we need to be spending 500 pounds per week which is two grand a month, which is obviously serious money. If you test five different ad sets, that's five lots of 500 pounds per week, that's two and a half grand per week or 10 grand per month just to test five different ad sets which is obviously more money than most of us can afford to simply just do a test. So this is where the low budgets actually come into play and actually can be quite advantageous. So unless you have that kind of serious cash to burn and spend on testing, well it's not burning it because essentially you do get something useful back in return. Obviously when you're doing an experiment, think of your ads when you're doing testing, think of them as like going out and actually asking people whether they want to buy your product. If you ask 10,000 people versus asking 1,000 people, then obviously you'll get kind of like a better average the more people you actually ask. So the more you can afford to spend on testing, the more accurate the results will be as an average and therefore the decisions you make on the testing stage will be kind of better, more informed decisions if that makes. So to kind of explain that a little bit more, what I typically teach is you're either doing one of two things when you're running Facebook ads, you're either testing or you're scaling, you use X amount of your money to test, work out from the results where the interest is coming from, see which ad sets, which demographic so on and so forth perform the best and then take those ad sets and move them into the scaling phase. The more money you spend in your testing phase, the more informed your decisions will be and the more accurate they'll be when it comes to picking ad sets to actually move across into the scaling phase. So this would be my strategy for somebody on a low budget and definitely my opinion, the best way to go about it. If you disagree, that's absolutely fine, I'd love to hear your thoughts, leave a comment down below and potentially we can open a discussion about that. So if you're on a low budget, what I recommend is taking 20 to 30% of your overall budget that you have to spend on Facebook ads. So if you have a thousand pounds budget to spend on Facebook ads, take two to 300 pounds of that and that's what you're gonna spend on your testing phase so you still have 70 to 80% to spend on the scaling phase. The scaling phase is where we're gonna be focusing on optimization, reaching that 50 conversions per week and that's why you need to save them a jar of your budget for that phase. So take the 20 to 30% two to 300 pounds if you've got a thousand pounds overall and you can divide that by five ad sets over the course of five days. If you can afford to try and put a budget on each ad set of at least a six pounds per day, the reason I say that is because Facebook ads are also an auction place, think of it as almost like the eBay but for impressions. So your ad essentially goes into the auction versus everybody others ads that's also competing for that same audience and the person who has the higher budget is obviously more favorable in Facebook's eyes. There are other things which have to be taken into consideration but the way I look at it is Facebook is a business they obviously want people to spend as much money as possible. So five pound per day is like a super popular strategy most people use. So if you can afford to go up to six pounds per day then just in my eyes it makes you look more favorable in Facebook's eyes. So the next steps once you've run those ads and for five days, five days is a nice amount to kind of reach the average user within your audience. It also gives Facebook quite a few days to kind of work out who the best customers are and achieve somewhat close to the best results it will ever get. Break the information down day by day, look at your click through rate, look at your cost per link clicks, look at your quality rankings and then take the best performing ad sets and duplicate them into what you're gonna call your scaling campaigns. And essentially all you're gonna be doing is increasing the budget. Now don't go crazy, don't go from six pounds a day all the way up to a hundred pounds per day or 200 pounds a day because you think it's gonna perform really well. What I like to do is kind of double test proof an ad set. So if it's performed really well so out of those five ad sets you've test you take the one with the highest click through rate and the cheapest clicks duplicate it into your purchase scaling campaign and double the budget. Go to say 12 pounds per day. Let it run for another five days see if the results are consistent and if they are you should be seeing some purchases at this point is the case that's a super positive sign and then I would then go into scaling it a bit more aggressively. Now when it comes to scaling there's so many different ways you can do it. The most conservative way by far though is to simply just increase the budget bit by bit every three, four, five days. The reason it's important not to do it every single day is again you just wanna give it a chance to settle down just in case you reset that optimization phase give it a chance three, four, five days to kind of settle down work out again who the best audience is and start producing some really good results. The small increments say five, 10, 20%, no more than 20%, no more than 20% I would say on each occasion in which you increase the budget and what that should do is slowly, steadily scale that ad set up, keep the results the same and ultimately bring in some consistent purchases and making a profit for you. With that being said then just kind of quickly recap what we've gone over for your ad sets to optimize and perform efficiently you need to spend approximately 500 pounds per week. This is super unrealistic so what you do is you use smaller budgets to test an ad set see what kind of results you get before then committing to the scaling phase. Take 20 to 30% of your overall budget for Facebook ads put it into the testing phase test a minimum of five audiences on six pounds per day if you can afford to. Stop all the ads unless they're profitable look at the best performers the ones with the highest click-through rate and the cheapest clicks duplicate those into your scaling campaigns and then just increase the budget slowly but steadily as long as the results stay the same as long as the click-through rate stays the same one gets better keep running it for another five days and at that point you should see some purchases coming through and with that being said then guys I'm gonna wrap the video up there I could probably go on for this for hours and hours and hours going through each and every eventuality perhaps if you want me to jump even deeper into this just leave a comment down below and if there's quite a few people who want me to go into a bit more information potentially actually show you a live example of testing the product and then that's certainly something that I'll be able to do before we go there one very quick thing if you're looking for a program that you can kind of work through self-pay step by step covers everything you need to do from day one start from scratch covers taxes, businesses, accountants all that good stuff make sure you check out my eCom Academy also comes with my full support and guidance too if you want to jump on the call with me go through any questions hesitations you have about joining we can do that also there is a booking service which is 100% free on the page so make sure you check out the link first link sorry in the video description below thanks again for watching hope you enjoyed it hope you learned something new and I'll see you in the next one