One of the biggest questions my real estate clients have is the ad budget. The budget is key when it comes to the number of times your ad will be displayed in a 24 hour period.
Facebook displays the way you spend money on ads as a daily budget. You set the budget, and Facebook will spend an average of whatever that number may be. Some days when the algorithm identifies more opportunities to be seen, they will spend no more than 25% over your set budget. To average that out, on days with less opportunity, it will spend less to make sure to stay within your average.
When running conversion or lead form campaigns for realtors, I use $15/day as a rule of thumb. I strongly recommend this number as a minimum because once you dip below that number, you typically won’t have your ads seen by enough people to let the algorithm properly optimize your ad.
Since Facebook runs on auction-style bidding, the higher your budget, the more your ad will be displayed. Just like an actual auction, the more money you bid, the better your chances are of winning that item.
Now, this doesn’t mean you can’t get away with having a lower budget. Depending on your area and the local competition for ads, you could spend less and still get measurable results.
If you’re in a lesser populated area with fewer agents running ads, you may be able to get leads with a $10/day budget, though I STRONGLY recommend against dropping into the single digits.
If you’re in a big city with lots of competition for ad space, $15 needs to be your minimum and chances are you’ll need to raise it to compete.
It’s natural for everyone to want to spend the least and make the most, but investing in Facebook ad spend is one of the best things you can do as a real estate agent. You never know when a lead you spend less than $5 to acquire can turn into a sale and a sizable commission.
The only way to know is to start with a competitive budget and then test and find out!
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