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Questions Regarding Facebook (6)

02-15-2015 09:14 AM #1 mymamaroks ()
Questions Regarding Facebook

Hi Guys i would like to ask your advice regarding facebook ads for the high facebook spenders.

1. What is the highest daily budget you have set for a advert set? I notice when i tried to increase the daily budget from 200 to 500, the click cost doubled.
2. Do you run any duplicate ads with the same targeting?

02-15-2015 09:48 AM #2 cmdeal (Veteran Member)

1. All else being equal, the idea that raising budgets = proportional rise in click prices is simply not true. In fact, if you think about it, it would be absurd if that were true, since that would pretty much stop all of the large advertiser and agencies from advertising on Facebook. You may get access to more placements since there will be more opportunities to spend your budget, and some of these auctions may be at higher prices, but in any case, you should pretty much always bid at the price where you achieve your target profit levels.

2. I am not sure why you would want to do this?

02-15-2015 11:24 AM #3 mindovermoney (Member)

1.) Your cost naturally will go up when you increase your budget, most times at least. I've been lucky enough to have maybe 5% of my campaign CPC's remain stagnant after doubling my budget, but it's rare to say the least. Generally, you only want to make a huge budget increase if your ROI is substantial enough to justify the increase.

2.) If you're seeing a 100% ROI (200%) at X budget, and you want to increase X budget to 2X budget, you should anticipate your new ROI to be somewhere around 65% (165%).

- $100 budget -> $200 rev = $100 profit

- $200 budget -> $330 rev = $ 130 profit

If you can afford the increase expense, you'll end up making more money/day, just make sure you don't drive your campaign to the ground by getting hyphy and increasing your budget too much.

02-15-2015 01:24 PM #4 cmdeal (Veteran Member)

Quote Originally Posted by mindovermoney View Post
1.) Your cost naturally will go up when you increase your budget, most times at least. I've been lucky enough to have maybe 5% of my campaign CPC's remain stagnant after doubling my budget, but it's rare to say the least. Generally, you only want to make a huge budget increase if your ROI is substantial enough to justify the increase.

2.) If you're seeing a 100% ROI (200%) at X budget, and you want to increase X budget to 2X budget, you should anticipate your new ROI to be somewhere around 65% (165%).

- $100 budget -> $200 rev = $100 profit

- $200 budget -> $330 rev = $ 130 profit

If you can afford the increase expense, you'll end up making more money/day, just make sure you don't drive your campaign to the ground by getting hyphy and increasing your budget too much.
I am not sure this is really an accurate description of how Facebook's pricing algorithms work.

If this was indeed accurate, we would have gone bankrupt a very long time ago.

02-15-2015 10:48 PM #5 mindovermoney (Member)

I've made no specific claims to algorithms, cmdeal, rather I simply made the claim that your cpc will likely increase as a result of an increase in budget.

I do welcome any refutation structured with more than a simple "no, no, no".

02-17-2015 06:20 AM #6 fbqueen (Senior Member)

In my experience, doubling the budget doesn't affect CPC much. Ofc it depends on how big your budget is - if it's below $1k then no worries you should be fine. Your CPC very much based on your account/ad's Quality Score. If your ads suck you will end up paying more! Try to aim for ads that can do high CTR. Test test and test!

Create 3 duplicates of your ad within one ad set. 1 or 2 ads will always do better than the other - you will see it for yourself!

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