How Your Budget Affects Your Facebook Ad Campaign Structure

With over 2.7 billion monthly active users world-wide in 2020, Facebook is without a doubt the biggest social network. It has the ability to convey your message to millions of people at once with the help of Facebook Ads.

However, before creating your entire campaign, you must first decide what budget you will allocate to your advertising. The overall campaign objective, number of ad sets, and number of ads you will create will ultimately be controlled by your budget. In this blog you will find a detailed analysis on how your budget can influence your Facebook ad campaign structure.

Facebook Ad Campaign Budget Terminology

Firstly, understand the two kinds of Facebook ad budgets.

Lifetime budget is the maximum amount of money you will spend at the end of the ad running period. You can set a lifetime budget if you have a start and end date to your campaign. Suppose you set a total budget of $1000 for the whole ad campaign for one month. Facebook will never charge more than that. This would come down to about $33 a day.
Daily budget is the maximum amount of money you will spend each day. Suppose you set a budget of $20 USD for running your Facebook ads. Setting a daily budget can mean you have an indefinite end to your campaign, and you can turn it off whenever you’d like.

How Your Budget Affects Your Facebook Ad Campaign Structure

The amount of money you are aiming to spend on advertisement is the investment you are making to build up your business. So, your marketing goals should also reflect the kind of business you have, industry, and what you’re looking to get out of it.

A great way to calculate your ad budget is with our Facebook Ad Budget Calculator. This is a simple tool we use in our agency to calculate how much you should spend on your Facebook ads.

Once you have an idea of how much you should spend in order to meet your goals, you can learn how it will affect your overall campaign structure.

Let’s look into a couple Facebook campaign structures that are dependent on the budget chosen.

Facebook Ad Campaign 1 – $30/Day:

It’s important to understand that the more variables Facebook has to test, the faster you will see results. This is because Facebook’s algorithm will have multiple variations to work with for each person’s preferences.

This is an ideal account structure for a conversion campaign with a budget of $30/day.

The ad budget of $30/Day which makes a total budget of $900 a month is a logical place to start.

Number of ad sets for $30/day

The ideal campaign structure in check with this budget would look like as follows:

Number of ad sets needed for campaign at 30$/day

In this campaign Ad set 1 is for targeting the warm audience. A warm audience is the one that has previously encountered with your business or brand.

This interaction could be in one of many ways like interaction with your Facebook account or Instagram page or simply by visiting your website. The purpose could be remarketing of existing or introducing new campaign or product to already converted audiences.

This campaign structure can include 3 to 4 Ad sets specifically for the cold audience. These are those groups of people that have never interacted with your brand. Once they get introduced to your business, they become warm audience. Facebook’s ad manager has the wonderful ability to reach your exact targeted audiences based on demographics (age, specific location, behavior, and interest).

You can effectively use ad set 2, 3 and 4 to reach a new, cold audience.

Number of ads for $30/day

In this campaign structure, each ad set is subdivided into 3 to 4 Ads. Each audience will see the same 3-4 ads. Each ad should test different formats such as carousel, single image, long video, and a short video. This way, you can determine which variation works best.

When you are aiming to build an audience for your business, it is important to keep your goals crystal clear. If your ad campaign is not giving you the results you are looking for, you can reevaluate your strategy by analyzing the performance of your ad set and ads.

With this campaign structure, you are more easily able to identify which ads and ad sets are performing best. For example, if ad set 3 is performing really well, and ad set 4 is not… Then you could decide to turn off ad set 4 or try something new with that audience.

Facebook Ad Campaign 2 – $10/Day:

For small businesses, a $900 a month budget could be a bit heavy on their pockets. They might shy away from spending that kind of money on Facebook ad campaigns, without knowing what results it will bring.

They really do not have to skimp in their advertising just because they are a small business. Facebook provides every business an equal opportunity to excel, and somewhat favors small businesses with smaller budgets.

A more affordable budget for small businesses could be $10/Day. Especially, for those who are new to Facebook advertising or looking to test the waters.

This is definitely a reasonable budget, but anything less than that is not advised because Facebook will have a hard time delivering your ad. Keeping in mind that this is for the conversion objective.

With a lower budget, the number of variables i.e.: ad sets and ads are also going to decrease. This is because each action requires a certain amount of money to be performed.

Number of ads sets and ads for $10/day

At $10/day you can have 1-2 ad sets for retargeting warm audiences, and 1-2 ad sets to target cold audiences.

These ad sets would be further divided into two or maybe 3 ads each. Again, ads would be the same for each audience.

Elements that are removed with a budget of $10/day:

The figure below clearly shows the impact of budget on your ad campaign structure. When you lower your budget from $30 per day to $10 per it is going to affect your ad campaign structure:

The budget of your ad campaign is directly proportional to the number of variables you can have in your Facebook Ad campaign structure. Each variable requires a budget in order to be delivered. Often it takes longer to test these variables against each other and show results when you do not provide Facebook with a sufficient budget.

Conclusion

Ideally, if you are going to run Facebook ads, you should begin with a budget of $10-$30/day. Even if you are a small business. It will provide you with sufficient room to test multiple variables and evaluate the best ads and audiences more quickly.

Also, this would mean that your business is making some revenue, and has found a product-market fit. You should always have some customers before exploring Facebook ads. We never recommend using Facebook to find your first few customers.

If you’re new to Facebook ads, and you’re not confident with running them yourself, Vertex Marketing Agency offers done-for-you Facebook ads. The best way to get in touch is to book a free strategy session with one of our experts.