You may be wondering, “How much should I budget for my paid media campaign?” As much as we’d like to give you a magic number, it’s almost impossible to do so. Why? Because every business is different and it depends on a number of factors. Here are a few things to consider when you’re budgeting for your paid media campaigns.
Goals. What are your specific goals? Are you trying to increase video views and drive website traffic? Or maybe you want to get more Facebook page likes, email signups and so on. The key here is to be specific. If you have a specific objective in mind that you know you want to hit, you can then take a step back to determine how much money you need to spend. With estimated cost per results, you’ll be able to get an idea of how much to spend in order to hit that goal.
How much content do you want to promote? Whether it’s an engagement campaign, brand awareness, or video views, knowing how much content you want to push will help you gauge the amount of money to put behind it.
Targeting. Who is your audience? How many different audiences do you want to reach? Do you want to just target existing fans or website visitors? Do you want to test between multiple interest audiences on Facebook, for example? It’s very important to know who you want to target. Some marketers bundle their audiences into one, but we don’t recommend that because you won’t get any insights or analysis on which audience performed best. The size of your audience and the number of different audiences you want to test directly impacts the media budget.
Timeframe. How long will these campaigns run? One day? One week? One month? One year? You want to make sure that you’re not spread too thin with your budget.
In general, you want to budget enough to achieve your goals, promote all the assets that you want to be seen by the right audiences, and get the maximum amount of juice and learnings from your campaign.
It’s super important to focus your efforts. If you have a smaller budget, prioritize the most important metrics you want to test at once. If you have a larger budget, you can reach more people, do more creative testing and achieve more varied marketing objectives all at once. However, even with a small budget, you can also do all of that over time. For example, if you only want to spend $1,000 per month, you can test one audience one month and another audience the next. This way, you can allocate your budget across multiple months and still gather data and insights without spreading it too thin.
Know your goals. Know how much content you want to promote. Know your target audience. Know your timeframe. Once you answer these questions, you will be able to plan your paid media budget and get things moving in no time!