Everything You Need To Know About Daily Budgets In Facebook Advertising
What is a daily budget?
A daily budget is the average amount of money you’re willing to spend on an ad set or campaign every single day.
For example, if your daily budget is $10, you’re telling Facebook to get you roughly $10 worth of the result that you optimized for every day.
The good news is Facebook won’t go beyond that daily amount.
Benefits of choosing a daily budget
1. It’s easy to control
Spending a specified amount daily allows for much easier pacing of spend. Each day you can count on the fact that the same amount will be spent, making it much easier to control your budgets and plan ahead financially.
2. It’s the easiest to set up
Facebook daily budgets are the easiest set up for an evergreen campaign. If you plan on running a campaign for a long time or until performance dictates the end date, then daily budgets are a good fit.
3. It’s the best option for fluctuating budgets
If you’re anticipating regular changes to your budget, daily budgets are the better choice, unlike in lifetime budgets where you set a budget in place and wait until the end date is reached.
Keep in mind that when adjusting your daily budgets, make sure it lies within 20% of its original level. Anything higher than that will have a negative impact on your campaign performance. That’s just how the Facebook algorithm is designed.
For example, if you wanted to quadruple your daily ad spend, don’t do it overnight. Increase it by 20% first and see how it performs. If it does well, continue increasing your budget in 20% increments until you reach your desired goal.
Drawbacks to choosing a daily budget
1. Might lead to ad fatigue
Facebook will actively try to exhaust the full daily budget you’ve given every single day, no matter what performance is on the account. That means your ads will be shown to as many people in your target audience as possible, even when the demand for your content is low.
This leads to a situation where because your audience is seeing the same ads over and over again, they become less responsive to them. Then your performance starts to decline. This is what’s referred to as ad fatigue.
2. There’s no ad scheduling
Unlike lifetime budgets, daily budgets don’t have an option for you to schedule when your ads will show. This means that your Facebook ads will run at all hours of all days of the week. If you need to have campaigns active only during certain portions of the week or times of day, then daily budgets might not be the way to go.
When to choose daily budgets
Choose daily budgets when:
i) Your campaign will be evergreen.
ii) You want to maximize strong performance.
iii) You expect to change your budget regularly.
That’s it for daily budgets. If you would like my help in implementing this and other strategies to sell your high ticket products and services, get in touch with me by clicking the button below to apply for a complimentary consultation.