How to Calculate Advertising Budget

1. Welcome to this class: Either, and welcome to this class where I'm going to teach you how to calculate your advertising budget. To understand how much money you should invest into your advertising is super important, especially when you're just starting. And in this class, we're going to discuss what do you need in order to start calculating and how to do it. We're going to calculate your daily budget and monthly budget. My name is Rita. I'm a digital marketing expert with 11 years of experience. I've been advertising for companies from all over the world and been using small and huge budgets to do it from just few thousand dollars to $1 million per month for just one d. So when it comes down to calculating, I'm your girl. Let me show you how we can do it in just a few minutes. 2. Calculating Budget for Facebook: In order to calculate your budget for Facebook advertising, you need to log in to your ads manager and choose your campaign objective. Let's say you would like to generate lids, so you're going to click on LDs and click Continue. In your next screen, you're going to see recommend the settings or Meno LDs campaign. I would like you to choose Meno because that way we will be able to change a lot of things within the campaign and want Facebook to do that for us, so let's continue with Menu. Now, you will see your campaign level. We don't need to do anything here, so we're going to continue to at level, clicking here on your left to go to T level. And at t level, all the activity actually happens on the t level after you set up your objective. So here you have conversion. Conversion means, what type of activity do you want to receive when you want to generate leads? You can collect leads from your landing page. You can collect them into instant form. You can collect them into messenger, instant form, and messenger, Instagram calls, and even apps. If you have an app, you can connect it to Facebook and collect lids there. I would go with Instant form. This is the most frequent caaign that is used on Facebook, you don't need a website. You don't need a landing page. Leads are going to be generated directly into instant form on Facebook. So after choosing instant form, I'm going to scroll down to audience. And here you need to choose who you want to target, and that's how Facebook will calculate the budget that you're going to need. So for example, if I would like to target United States, so I'm going to type in United States. Now, I'm going to go down to audience and advanced audience. So now I have age and gender. These are super basic. So for example, I would like to target people who are over 35, and let's say 50 years old. As for gender, I would like to target women only. Then there is detailed targeting. In detail targeting, I have a lot of different options, I have demographics, interests, and behavior, and I can use all of them at the same time. So for example, for demographics, I would like to target parents of children of all ages, basically, then I would like to target people who are married, And I would like to narrow this down with some behavior. For example, let's go to travel and choose frequent travelers, which will rarely work when we are parents and married, but still frequent travelers. And I have a pretty good number here of estimated audience somewhere from 16 million people to almost 19 million people. And for estimated daily results, I can reach 3,000 people or 8.4 thousand people and generate between 21 60 leads, and let's see what was my budget. It was a default budget of $20. Let's say I would have $100 per day. And for that amount of money, I can generate somewhere 54-157 leads per day. Now it's work for my calculator. I'm going to calculate what will be the lead price. First of all, I will divide 100 by 54, and that is going to be my highest price per lead. And if I'm going to divide 100 by 157, this will be my lowest price per lead. So I usually recommend to go with the highest price per lead. So let's go back to 1.1 0.8. And now it all depends on how many leads do I want to generate on a daily basis? Let's say I would like to get ten leads per day, so I'm going to multiply that number by ten. And this is my daily budget. This is around $20, and this is approximately what I need to generate results for myself on Facebook. 3. Calculating Budget for LinkedIn: If we're going to calculate the budget on Linden, then we're going to do it almost the same way. I already locked into my campaign group, and now I'm in my campaigns. From here, I'm going to click on Create Copaign and I'm going to choose the campaign type that I would like to work with. So I'm going to go with generation here as well. Then I'm going to get down to choose my targeting. So instead of Israel, I'm going to go with the United States because I will have more audience here, and for my targeting options, the things are slightly different with Linden. We do have different demographics options, but they are not really used on Linden, well, not often anyway. We, most likely, we're going to use company, education, job experience, and perhaps interests and traits depending on what people we want to reach. So if I'm going to choose, for example, company industry, I'm going to go with finance here. I'm going to leave all of that underneath my company industry, then going back, and I'm going to choose experience. For experience, I'd like to go first with job function instead of job title. That's just a little tip because that way you will have broader audience and have more options for targeting. So for example, I will choose business developers. And instead of or, I would like to narrow it down. So I'm going to target finance services, and I'm going to target business developers. If you have any other targeting options, you can add them right here. And now, let me show you how you calculate your budget. So as you can see, you also have target audience size, and this is pretty decent target audience size. It's not recommended to have less than 50,000 people when you are setting up your campaign on Linden. And if you're going to scroll down, you will see your budget recommendations. So that's for 30 days. If I'm going to switch it to one day, this is what it will look like. So if my daily spend will be $56-223. I can generate 1-4 leads. Lead price on indian is expenser than on Facebook, so you can see that cost per lead can get $66-100. So you need to just calculate how many leads do you want per day. I would also not use the lowest number in this case to calculate your monthly budget. For your daily budget, I would go with 100. And for example, I would like ten leads per day. Then you know that it's $1,000 per day to generate the amount of leads that you would like on Linden. 4. Calculating Budget for Google Ads: When it comes to calculating Google Ads price and how much money should you spend on Google ads per day or per month, the calculation here depends on your keywords and basically on the topic of your advertising. So what you must do, you need to go to tools, then planning keyword planner, discover new keywords, and here you need to choose language that you are going to use in your ads and location which you are going to target in your ads. So for example, if you would like to solve burgers, that's what you write here, Burgers. Order burgers Borger and click on G results. These results are relevant for United States and in English. So let's see we have 2384 different keywords ideas, and those are just ideas. We can go even more specific with our search. So if we're going to look at the results, we have burgers. Well, there are 1 million searches for just burgers. If we're looking for order burgers, there are also a lot of searches for that, then burger in delivery. So I would go for order burgers and burger near me. Now, let's review the pricing. The pricing here starts the lowest bid from dollar 56, and the highest bid is seven 16. Now, I need to get at least 1,000 clicks to my website. I'll be able to generate from 1,000 clicks at least 10% in sales. So let's count 100 clicks. 1,000 clicks. And multiply it by seven 16. Well, that's a lot of money for a monthly budget, but it's just an approximate budget. It's a maximum amount of money that I need to invest in this advertising. Also, this is very competitive keywords, and a lot of other brands are competing with me for that keyword. And if we're going to take a lowest bid here which I can definitely use, I don't need to aim for top at least at the beginning, and we're going to multiply it by thousand This is more or less what I can use to start with the campaign. So if I want to start promoting my burger place, this is the amount of money that I would need. And if I want to compete with bigger brands and I do have a budget for that. So this is approximate amount that I would need on a monthly basis, if I would like to generate 1,000 clicks. Obviously, this is not really accurate, and once you start with advertising, you will see how to optimize your ads, and the whole idea of optimization is not to pay that high and still get into the top page and compete with bigger brands, even if you don't pay $7 per click. 5. Summary: I hope this workshop was helpful to you, and now you know how much money you should invest into your advertising. If you want to know more about digital marketing, follow me on YouTube and I see you the next one. Goodbye.