Promoting your business is key to reaching a greater number of potential customers. Gone are the days when offline methods were sufficient to market the products and services. With access to the Internet, most people these days can find everything they need in just a few clicks.
Hence, marketing your business online is of the utmost importance. And social media platforms, specifically, Facebook can be a great way to reach your potential audience. However, with constantly changing algorithms, you can’t just rely on organic reach on Facebook. You need to use the Facebook advertising feature of this social media giant.
But not everybody has the budget to spend huge amounts on Facebook advertising. So, how can you ensure that you choose Facebook advertising while keeping it within your budget? You need to consider 3 factors, namely, your advertising budget, risk tolerance, and the average cost per purchase. Based on these factors, you can divide Facebook advertising into four levels.
If you have quite a low budget, you can start by spending just $1 on Facebook ads/day. As per the 2020 statistics, you need to spend $9.77 as costs for thousand impressions per day.
With just $1/day, you can get almost 37k impressions per year. This means by spending just $1/day, you will reach a larger audience which wouldn’t have been possible otherwise.
The next step is to spend enough budget that helps you make use of the Facebook algorithm to promote your ads to the right audience. This level will include targeting those customers that are add-to-cart customers but don’t really purchase the product. These are also known as conversions.
The minimum you can spend on this level is $2.50 per add-to-cart customer. This adds up to $125/day and cumulating $540/month.
The next level includes spending on cost per purchase. If you want to use Facebook marketing in Singapore to optimize your purchases along with add-to-cart, you need to spend a little more of your budget. You must ensure that you spend enough on Facebook ads that give you at least 50 purchases in a week.
If you spend cost per purchase of $11 it adds up to $550 per week. This adds up to $2,360 per month. If you have got the budget for it, go for it!
You can skip to this level straight after level 2 or maybe if you are taking it slow, you can certainly reach here after level 3. On this level, your main goal must be to make a profit while spending enough of Facebook advertisements.
This will happen only when you aim to reduce your cost per purchase from level three. This can be done when you work on your ad creatives and targeting a focused demographic for your advertisements.
These four different levels of Facebook advertising will certainly profit your business. You can start from a lower budget and reach a profitable ad campaign one level at a time.
If you want assistance in efficiently executing these four levels of Facebook advertising, get in touch with us at Hyper Fame Digital.
We are a leading Facebook marketing agency in Singapore that has helped several businesses locally and globally to make a strong digital presence. Get in touch with our creative team now.