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Clicks, Conversions, Clients Course > Module 3:  KPIs, Metrics, and Data Points

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LESSON OVERVIEW


Video 01: Budget For Testing

  • What budget should I use for testing? 
  • Testing is all dependent on what you can afford. You can start with $5/day and you can start at $100/day. It is what is available to you or your business that can be spent, but you have to assume you are going to lose it in the first round of testing. 
  • You want to have that assumption you're going to lose your initial budget is because when you we are testing, what you're basically saying is, is I'm not sure if this is going to work, but if it does, then I need to have money available in order to continue to scale.
  • You need to start with something that works for you
  • So for example, as you can see on your screen here, there are campaigns running for five to $7 a day. Now, for some people they're thinking that's too low, I can't really do anything with that. 
  • There are plenty of people operating a business on $5-$10/day budgets, but they may not be able to scale like they want. 
  • You can't necessarily scale at enough volume to be profitable as a business at $5-$7/day, but it gives us something to work with and allows us to test different audiences, different creatives, so on and so forth. 
  • If you're going to use the $5-$10/day method use an ad set budget optimized structure (ABO). 
  • If you're going to do a CBO, I tell people no less than $20/day just so you can give it what you need in terms of a testing budget, that it can spread out amongst audiences and be effective. 
  • If you can't afford $5/day, don't run ads so you're not putting yourself in a predicament where things can no longer run beyond a week. You need to allow your ads to mature and gather data. So anytime you are setting up a test budget, it has to work within your set budget for the business and or your personal situation. 
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LESSON TRANSCRIPT


David (00:00):

Hey everyone. Welcome back. This video is going to be about budgeting to use for testing. So what budget should I use for testing? A lot of people have different ways that they go about testing, whether it's low budget or high budget, but that's all relative. So keep this in mind. Testing is all dependent on what you can afford. There are plenty people who started $5 a day, and there are plenty of people who start at a hundred dollars a day. It is what is available to you or your business that can be spent and assumed that you are going to lose in that first round of testing. Now, the reason why you want to have that assumption is because when you were testing, what you're basically saying is, is I'm not sure if this is going to work, but if it does, then I need to have money available in order to continue to scale.


David (00:46):

So oftentimes you need to start with something that works for you. So for example, as you can see on your screen here, there are campaigns running for five to $7 a day. Now, for some people they're thinking odds too low, I can't really do anything with that. There were plenty of people operating a business on five to $10 a day budgets, but they may not be able to scale. You know, in this example is an e-commerce business. They can't necessarily scale at enough volume to be profitable as a business at five to $7 a day, but it gives us something to work with and allows us to test different audiences, different creatives, so on and so forth. Whereas for example, when you're at a point of scale, as another example of a campaign, you know, this campaign has ad sets starting at $50 a day, and this is an ABO ad set budget optimized campaign.


David (01:34):

If you wanted to do a CBO campaign, budget optimized campaign, you could start those at $5 a day, but it's far more effective. If you're going to use the five or $10 a day method with an ad set budget, optimized structure. If you're going to do a CBO, oftentimes I tell people no less than 20, just so you can give it what you need in terms of a testing budget, that it can spread out amongst audiences and be effective. So personally, $5 a day is the lowest $5 per audience. So once again, with an ad set budget set up, if you want to do a CBO campaign budgets, $20 a day is recommended. And so if you can't afford $20 a day, don't run ads. Yet. If you can't afford $5 a day, don't run ads that you're not putting yourself in a predicament where things can no longer run beyond a week. You need to allow your ads to mature and gather data. So anytime you are setting up a test budget, it has to work within your set budget for the business and or your personal situation. So once again, five to $10 a day, it's 150 to $300 a month. If you're going to do a CBO at $20 a day, 600 a month, that is to get things started. And that should be enough to get you rolling and testing out your Facebook ads.

 

MY NOTES


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