I want to run paid advertisements!
When businesses tell me that they want to run paid advertisements, the first set of questions that I ask are the following.
What is your desired daily/monthly/quarterly and or annual revenue goals?
What is your current marketing budget to reach these goals?
Do you want to know WHY these two questions are imperative?
Just as anything you have to calculate the cost of the strategy itself to reach the desired outcome. If you want to make $100k/month and you only have $5000, most likely your budget would only help with test advertisements to eventually reach your desired outcome. However the expectation falls extremely short based on the applied investment.
As a business you have to have realistic expectations with the proper budget to reach your objectives.
If for example you have a test budget of $5000 for Facebook ads for the first 30 days to determine how well consumers are responding to specific content and to identify patterns in cost. You would then based on results be able to conceive a formula based on predictive analysis in order to obtain your $100k/month goal.
For Example
If Group A brings in $10/lead
AT $499/Sale
A Goal of 200 leads is needed to convert into a sale to reach $100k
Inflate your base goal by (5) that would bring you to a goal of 1000 leads to convert into a sale.
At the cost of $10/lead you would need a budget of $10,000 (for the first month) to reach inflated base goal
As time goes on, you can do what is called ad optimization where the cost per lead can be lowered with time.
This does not include the cost for re-targeting. Ultimately test ads for 30-60 days must be implemented to identify costs and patterns of those costs in order to create a formula based on predictive analysis.
I recently came across a company who wanted to make $1,000,000 in the first month. While anything is possible, they had no strategy whatsoever.
Digital marketing is a science and is highly mathematical. You have to set goals and determine the costs to reach those thresholds while improving the costs over time.
What is your formula to reach your revenue goals?