Budgeting and Scheduling
According to Facebook Business, "A budget is the amount of money one wants to spend to show people their ads. It's also a cost control tool. It helps control the overall spend for an ad set (or campaign) the same way a bid strategy helps control the cost per result.
It is possible to set the budget at the ad set or campaign level. For whichever level is chosen, there are two types of budgets: Daily budgets: The average amount to be spent on an ad set or campaign every day. Lifetime budgets: The amount to be spent over the entire run-time of the ad set or campaign."
Facebook advertising is an auction in which advertisers bid against each other to obtain a spot on Facebook’s platform. The bid amount represents the level of interest in showing the ads: low bids show low interest; high bids show high interest. There are two ways to set the bid.
1. Set it on automatic and allow Facebook to bid on its behalf. 2. Set it on manual and choose the agreed-upon budget to pay per 1,000 impressions. Note: It is best to choose automatic bid if there is no set value in mind and choose manual bid if there is a set amount planned to pay per bid. If manual bid is chosen, don’t bid too low. Remember that Facebook advertising is an auction. Bidding too low will allow competitors to outbid for the same desired spot.
Facebook Blueprint states: "We charge your account each time we deliver an ad to someone (even if that person doesn't click or tap it). Keep a close eye on the ad as it's running. If it's not getting the results you'd like, you may want to edit it or start over with a brand new ad."
From Facebook Business, budgets are broken down. There are minimum budgets.
When one creates a campaign or ad set, a minimum budget is required to help the ad be delivered consistently. Whether using a daily or lifetime budget, the minimum budget is calculating as a daily amount. One example would be looking at a lifetime budget of $50 USD for an ad that runs five days. The minimum daily budget must be at least $10 USD.
When using a lifetime budget, the budget may not be spent equally every day, provided better results are possible on certain days. However, the minimum daily budget should still average out to five times the lifetime budget.
If the campaign or ad set budget is lowered, it is required that the new budget amount is equal to or above the current spending amount, plus 10% of the spending amount from the past two days. For example, if there is a $500 budget to run a week-long campaign and $300 has been spent so far, and $100 of that amount is spent within the past 36 hours, the lowest cost for the budget would be $310.
When Getting Charged
There are two options for when the brand wants to be charged by Facebook. If the choice is to be charged every time 1,000 impressions occur or every time someone clicks on the ad, or the choice is per 1,000 impressions, Facebook will charge every time the ad appears on the brand's audience’s screen. If link clicks are chosen, Facebook will charge every time someone clicks on any part of the ad. This includes clicking to react, to comment, to share, or to claim the brand's offer. If the brand is unsure which method would be more financially beneficial, it is possible to test two different ad sets: one in which the brand is charged per impression and one in which the brand is charged per clicks. See which ad is more inexpensive and continue to run that one.
If the choice is a lifetime budget, there will be the option to either run the ads continuously or to run them according to a schedule. Running the ads on a schedule would be helpful if you it is clear that the audience is most often on Facebook, which is information that can be access through audience insights. If Audience Insights shows that the brand's audience accesses Facebook from noon to 1:00 p.m. on the weekdays. To ensure that this audience sees the ads, schedule ads to run every weekday from noon to 1:00 p.m.
After the ad has been paid for and Facebook has approved it, Facebook will deliver the ad to the designated target audience using two methods: Standard Delivery and Accelerated Delivery.
If the choice is Standard Delivery, which is the recommended delivery type, Facebook will deliver the ads evenly over the course of the campaign (this process is also called pacing). When choosing this option, because Facebook paces the budget, Facebook may lower the bid when there are more inexpensive opportunities available to get the best results out of the budget. Pacing is advantageous because the funds will be available to spend on more inexpensive opportunities that may come later.
If the choice is Accelerated Delivery, Facebook will deliver the ads as quickly as possible. The focus will be on speed rather than efficiency.
Although this option may prevent the brand from getting the most statistical value from the ads (such as the most cost-effective delivery options), it will be beneficial if the campaign is time sensitive. Sometimes an ad may not be delivering. That may have to do with it not having the highest total value - a value that is calculated by four factors: the bid, the ad quality and relevance, and the estimated action rates.
The following is a checklist of what can be done to increase the highest total value:
1. Enter a decent bid: Although the bid can be any amount, it’s important not to bid too low. If a competitor bids a higher amount for a spot in News Feed that this brand desires, the bid and the spot will be lost. 2. Create high-quality ads: Low-quality ads may affect delivery. 3. Target a relevant audience: If the wrong audience is targeted, an audience that isn’t relevant to the offer (for example, targeting young women for an ad that advertises men’s shoes), the client will receive a low relevance score, which will result in low estimated action rates, meaning the number of people Facebook predicts will respond to the ad. It is important that the ad has a high total value. Otherwise, the ad will not deliver.
Estimated Daily Results As the ad is being created in the ad set level, there will be a square on the right column of the screen labeled “Estimated Daily Results.” That square provides an estimate of daily reach and results based on the ad settings, such as the target audience, budget, and optimization. After the following are chosen: objective, placement, schedule, and budget and created the audience, the estimated daily results bar will provide a predicted outcome based on the campaign's optimization.
With the estimated daily results prediction, the daily budget can be adjusted, ad set performance optimized, and use ofthe information of the ad set that has been reported thus far, to improve the ad's results. Estimated daily results are best suited for advertisers who have actions as their objective (e.g., video views, conversions, and installs).
Choosing The Budget and Schedule The next step is to create the budget and schedule, which can be done at the ad set level. So many curious advertisers and potential clients ask how much Facebook ads cost. Facebook doesn’t have a fixed fee for its ads because the ad buying process is a bid. Rather than charging a set amount per month, Facebook charges by the amount the customer/brand is willing to pay. Is the plan to spend $20 a day? That is possible. Is the plan to spend $5 a day? That is possible also. Establish the budget with Facebook, and Facebook will charge within that budget. There’s no maximum daily spend needed. The caution is not going too low. Spots must be bidded on for a spot for Facebook’s platform. Budgeting wisely, but smartly helps win a good spot.
Here is how to create the budget and schedule:
The budget is the amount of money the client/brand is willing to pay over the period of time the ads is chosen to run. Although the charge per day may differ, Facebook will never charge more than the daily budget. When setting a budget, the options are: daily budget and lifetime budget. The daily budget is the amount one is willing to spend each day, and the lifetime budget is the amount one is willing to spend over the duration of the ad set. Once a budget type has been chosen, it can't be changed wile the ad is running. However, a duplicate ad set can be created with a different budget type for that ad set.
After the budget is set, a schedule must be chosen. The default option is to run the ad set continuously. If that option is selected, Facebook will run the ads until the budget has been completely spent. The second option is to set a start and end date. Facebook will run the ad based on the start date that is chosen and end it on the chosen date. The times entered must comply with the times of each ad’s location. If the ads are targeted in New York and London at 5:00 p.m., both ads will begin at 5:00 p.m. in their respective locations.