Understanding Your Facebook Advertising Budget

 

 

It is important to know the difference between your budget and your amount spent with Facebook Advertising.

  • Budget: The amount of money you’re willing to pay to have ads from your ad set shown over the period you set it to run. You set a budget for each ad set you create. Remember: You’re not buying ads or the ability to show ads. You’re telling Facebook how much you’re willing to spend on them showing your ads to people in your target audience who can get you the results you want.
  • Amount spent: The amount you actually end up paying (how much money was used from the budget) on your ad set. Ideally, your ad sets will spend most, if not all, of their budgets. (If they’re not, check out these Tips from Facebook.

It’s also important to know the difference between daily and lifetime budgets.

  • Daily Budget: The average amount you’re willing to spend on an ad set every day. Learn more
  • Lifetime Budget: The amount you’re willing to spend over the duration of an ad set.

Important:

  • You can’t switch an ad set’s budget type from one to another after it’s been created. However, you can duplicate an existing ad set

Each ad set will have a separate budget, so keep this in mind if you have more than one active ad set.

When you set your daily budget, you’re setting an average. This means that Facebook will try to get you roughly your daily budget’s worth of the result you optimized for every day. However, there may be certain days that are great opportunities to get you lots of that result. On those days, we may spend up to 25% over your daily budget.

They do this to deliver your ads and spend your budget as efficiently and effectively as possible. By allowing themselves 25% flexibility, they can more easily take advantage of great opportunities when they arise in the ad auction marketplace.

For example, if your daily budget is $10, they may spend up to $12.50 on a given day.

However, your charges will average out over a calendar week. (A calendar week is Sunday to Saturday.) If they spend more on a day with lots of opportunities for results, we’ll spend less on a day with fewer.

Wowzas! Sorry to bore you with all the background stuff but it’s best that you understand how all this works before you run an ad campaign.

Add a Comment

Your email address will not be published. Required fields are marked *

  • Social Proof from your existing and past customers in the form of reviews, and testimonials can positively impact t… https://t.co/N8wZxdfqZx
  • @gymplanapp Nice!
  • Five Things Your Competitors Know About Facebook Advertising. 1. They Know How To Build An Ads Funnel 2. They Ne… https://t.co/L2qwiKv2Te
Select your currency
USD United States (US) dollar