How Much Should Real Estate Agents Spend on Facebook?
When people are organising their social media budget, one of the first questions they ask when it comes to Facebook is ‘how much do I need to spend?’ This quick guide will give you some tips to help you break down how much you should spend on Facebook and why!
What’s your goal?
Before you do or spend anything in marketing, you should know what you’re trying to achieve. Is it to get traffic? Build brand awareness? Video views? Get people to download your lead magnet? Knowing this is important, because it will help you make the rest of your decisions, and also know if it’s working or not.
On a high level, I like to separate Facebook into two categories: Branding, and advertising. Brand is all about brand awareness and getting your name out there, so you’d meausure this in reach, impressions and engagement (as well as how much it’s costing). Advertising is about promoting something like an eBook, a product or a house, so you’d measure this in the amount of leads, cost per lead, and so on. As you’ll see they have two very different objectives, so know this from the start.
Know your goal before you start spending.
What are you trying to achieve?
Create a sustainable budget.
When doing your Facebook Ads, you want to have a budget that is sustainable. Meaning, if you only have $300 for a month, spread it out evenly so that it’s sustainable and consistent (e.g. $10 per day). This is also very important for letting Facebook optimise (in the next point).
Let Facebook optimise.
Facebook is a very clever piece of technology. It can do some seriously powerful things, but you need to let it do its thing. Facebook ‘learns’ over time who’s most interested in your ads, how they perform, where to send it etc. This usually takes 72 hours to start kicking in properly, so if you keep tweaking it every day you’re going to shoot yourself in the foot. I was once running a campaign and constantly tweaking it to ‘improve’ it. And then funnily enough, the best thing I ever did was do nothing. Then it took off!
10 for 10.
All the information I’m giving you right now is useful, but you might still be thinking ‘BUT HOW MUCH DO I SPEND!?’. Haha. So to give you a practical answer, $10 a day for 10 days is a great starting point. $5 is such a small amount it’s tough for Facebook to know what to do with it, and it will take forever to get any useful data. $10 is a good amount that can get results, and 10 days allows the algorithm to optimise and run through every day of the week, as well as weekends. Having 10 days of data is a useful metric so you can see how your ads are going, and what you can change to make it better.
$10 a day for 10 days is a good place to start.
This will give you useful data.
Read the data.
Reading the metrics every now and then is crucial. Twice a week just pop into your Ads Manager and see how your ads are going. Facebook offers you all sorts of different metrics to help you make decisions, and you don’t want to waste it! A bad Facebook Ad will be expensive, and a few tweaks could save you a lot of money over the course of your campaign.
Don’t stop winning ads.
You should never turn off an ad that’s on fire! If Facebook has decided that your ad is high quality and very relevant to your audience, let it run! Don’t even tweak it, unless it starts slowing down later on. Winning ads are like gold, and you gotta let that baby run!
Try to always have one ad running.
I like to have an ad running at all times. Organic content is important and it’s great, but Facebook ads are so powerful I think it’s a huge waste to not have something out there. If you have a small budget and you want the most bang for your buck, I’d recommend shooting a short video that adds a lot of value to your audience, and running a post engagement campaign for $5 – $10 a day. This will get you super cheap views, engagement, it adds value to your audience, builds brand awareness and costs next to nothing.
With these tips, you’ll have a better idea on how much to spend on Facebook and how to run your campaign effectively! If you want to learn more about social media marketing, download my free guide below. Happy marketing!