Managing Your Facebook Advertising Budget
Advertising a business requires great investment. You need to invest time, money and your effort to have a successful marketing campaign. One of the largest costs businesses incur is advertising. However, Facebook offers you a simple and cost effective alternative to traditional internet marketing. You can effectively control the amount of money you use to advertise on Facebook and keep the costs well within your budget limits. This is especially helpful for businesses with small advertising budgets.
When you choose to advertise on Facebook, you will have to select the method of payment you prefer for your advertisements. There are two forms of payment available on the social network. You can pay for your advertisements as a CPC or a CPM advertiser. CPC stands for Cost per click and means that you will be charged every time a user clicks on your advertisement. CPM stands for cost per thousand impressions and means that you will be charged for every person who views your ad whether or not they click on the advertisement.
The method you choose is dependent on the goal of your marketing campaign. If you are interested in driving traffic to your Facebook page or website and would like to control the cost of driving this traffic, you will be more interested in CPC. If you are interested in placing your ads in the right location and place a lot of importance on the impression your ad creates (i.e. what it looks like) you would be more interested in CPM.
When placing your ads on Facebook, whether CPM or CPC, you can decide the maximum amount you are willing to spend on each click or view of your advertisement. Facebook will provide you with a range for the cost of similar ads based on how much other advertisers in the same category are willing to pay to reach the same audience. You can place a bid within or outside the range provided. Facebook will only charge you the amount that is required to win the auction which in some cases may be lower than your bid.
If you are worried about having to spend more than you can afford on an advertising campaign, Facebook offers you ways to limit your spending. You can do this by setting a Daily Budget. This is the maximum amount of money you are willing to spend on any advertising campaign in a single day. When your maximum limit for the day is reached, your ads are automatically withdrawn and will not show for the rest of the day. The maximum limit in your Daily Budget can be changed by going to Ads Manager and changing the limit.
You can also manage the amount of money spent on your account every day by setting a maximum limit. This is known as the Daily Spend Limit. This amount can never exceed the maximum limit set for your Daily Budget. The Daily Spend Limit however, is reset every day at midnight depending on your time zone.