Fb Ads

While setting up your Facebook ad, you need to have a command over a couple of crucial elements:When to begin spending? How much to be spent? How much is your product or service? How many do you want to sell? What’s your conversion rate already?

For example, let’s say:

  • Product value: $200
  • You want to sell: 20
  • Conversion rate: 2%

Now a little basic math can help us figure out that to make $2,000 off of 20 sales with a 2% conversion rate, you’re going to need 2,000 visits (or clicks on your ad).

So… how much is it going to cost to get those 2,000 clicks? That’s what you want to figure out here.
Investing too much and getting nothing?
Scary! No?

There is a difference between doing the right thing and doing the thing right. Promoting a brand on facebook is a great choice but how to go about it is another huge challenge.
Spending too much and getting a minimal response and spending too less and losing the potential sales is what needs to be balanced.

Alas! There is no straight jacket formula but a combination of strategies that makes you a perfect businessman.


  • Investigate your target audience(people who will be seeing your ads).
  • Be tricky enough to judge and invest.Putting too much in a single layer of cake will just make it sour (I mean giving your efforts to a single type of audience will never fetch you results so diversify your vision and resources).


  1. Never spend too much or too less on an ad- It takes a lot of effort to design an ad so always give it ample time to run. Never rush to earn first let it burn(Even sun needs to burn the whole day to reach that height). Also, keep a close eye on how it is going and analyse.You yourself will know if it is demanding time or money. Do not just keep spending.

  2. Choose the correct Campaign- Choose the correct campaign strategy for the correct type of audience.It is obviously hard to decide on what strategy will work for your business but choose wisely and be a keen observer throughout. It should never be late to apply one and leave other.You got to act quickly.

  3. Change the aspects one by one- Keep changing the aspects affecting the budget,one by one.This will fetch you the one that affects the most and reach a minimal level.You will reach the best cost effective method this way.

  4. Keep Things Updated And Fresh- Showing the same ad can sometimes give a negative impact.It can reflect lack of sale from your site hence,it is advisable to show the ads alternatively giving an impression that it is new.It is just a game of mind and illusion.

  5. Choose the correct types of ads- Different types of ads are shown for different purposes so choose wisely.

  • Traffic generation ads only get traffic to your website.
  • Page Likes increasing ads are the ones created for the organic reach of a page hence they work for a single purpose.
  • Event promotion ads help only in promoting a huge event organized by your company.
  • Lead Generation ads are the ones that keep the audience engaged and don't allow them to leave your page without letting you gather information about them.


You have the option to select a Custom Audience -- this allows you to target people on Facebook who are in your company's contact database, visited a page on your website that has a tracking pixel, or use your app or game.
Once you find a group that responds well to your ads, Facebook allows you to save these audiences to be used again later -- so you may not need to dive into this step once you've been running Facebook ads for a while


  1. COLD AUDIENCE-These are people who are completely unaware of your brand.They need a lot of investment to make faith in you.

  2. WARM AUDIENCE-These are people who have recently visited you and are past purchasers.Hence,are aware of the quality and of course have faith in your brand so you can spend on retargeting ads here.

  3. HOT AUDIENCE-These are people who are totally engaged to you.They are just waiting for the hot deals and purchases, so happening ads are awaited here and personal discounts too.


Facebook gives the liberty to set either a daily budget or a lifetime budget. Here's what you should know about them:

Daily budget.

This option is applicable to those who wish to run their ad the entire day. Daily budget means that facebook will pace your spending per day. But you need to keep in mind that the minimum daily budget for an ad set is $1.00 USD and must be at least 2X your CPC. To avoid cart abandonment it is advised to invest daily on hot and warm audiences because these audiences may just wait for the hot deals served to them and are eager purchasers.

Also,in case of cold audiences we can invest on a long-term basis investigating the potential of the market by running campaigns with tested high performing audiences amongst them and suggesting a daily budget.

Lifetime budget.

Lifetime budget is applicable to you if you are looking to run your ad for a specified length of time. Which implies that the time period you set for the ad to run will be the time for which Facebook will pace your spend over.

Budgeting can be optimized through advanced options like


Facebook gives you the freedom to choose the end and the start dates of the ads or you can also adjust the hours or the days of the weeks for your ads to show.


This is categorized into two types-
Standard Delivery- In this category the ad is delivered throughout the day.

Accelerated Delivery- This category serves you ads as and when required.Like certain ads are only seen at night because that is the only time when we actually observe things minutely and have time to spend on them.Hence,It is time based.
Visualising the behaviour of the audiences through short-term campaigns we can set a lifetime investment budget with facebook ads and invest wisely. For Example-There are people who I know won’t buy but I cannot leave targeting them.There may be a chance that something triggers them hence,in this scenario we can decide a lifetime budget with facebook that will be spent on such an audience.This way we will have a hold everywhere and we are not tending to lose any kind of customer.


Starting to advertise for a new audience isn’t easy.There are many questions that arise like- Will this audience work for my brand?
Is my money worth a spend here?
Risk is a fix or a ditch?
and many more……

To answer all these there exists a formula based on experience of working with a lot of e-commerce websites.

While testing a new audience,your daily budget for each ad set and campaign should be 1.5 to 3 times your Average Order Value (AOV).

This helps you(provides you enough data) analyse that is this audience worth investing in? Further,you can scale(increase or decrease) the budget accordingly depending upon the potential and set your sales goals.

Cold Test

Daily Budget = 1.5x~3x AOV

Then your DailyBudget would be between:
(1.5 * 80) to (3 * 80)
= $120 to $240

Now,if you see capability in the audience then keep spending on it or else stop this ad simply.


Hot and warm audiences are traced by facebook pixels installed in your website.
For Example,
Size of your weekly hot audience is 2000 people and you want to show an ad 20 times in 7 days to an individual then your weekly Target Impressions (Size of audience*target frequency) are-

Size of the audience * Target frequency(Total number of times you would like to show your ad to each person.)

Now,average Cost Per 1000 Impressions(CPM) over time for your ads is $5 then your Weekly budget would be-

Target Impressions/1000 *CPM

And your daily budget would be-


Get the best out of what you have put in. A single but a planned decision is everything that you need to reach your e-commerce success goals.