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How to Plan a Budget for Targeted Advertising on Social Media

Planning a budget for targeted advertising  How to Plan a Budget  on social networks is an important step in promoting a business. In order not to waste money, you need to clearly understand how much to spend on advertising and how to distribute the budget. Let’s figure out how to properly plan the cost of targeted advertising to get the most out of it.

1. Define the goals of the advertising campaign

Why do you need to set goals?

Before calculating the cost of targeted advertising , you need to clearly define the goals of the campaign. Without this, you will simply burn your budget in vain. The goals can be different: attracting new subscribers, selling products, increasing brand awareness. The main thing is that they are specific and measurable.

For example, if your goal is to increase sales by 20% in 3 months, then you need to plan your budget for it. But if you want to increase the number of subscribers in your VKontakte group to 10,000, then the costs will be completely different. So without clear goals, you can’t go anywhere.

How to set goals correctly

Goals should be SMART – Specific, Measurable, Achievable, Relevant and Time-bound. Here are some examples of good goals for targeting:

  • Get 100 leads for a price of no more than 300 rubles per month
  • Increase sales by 15% per quarter
  • Attract 5000 new subscribers in 2 months

But “promote a group” or “increase sales” – these are vague goals, for which it is difficult to plan a budget. So set goals correctly, and it will be easier to calculate expenses.

2. Select platforms and formats

On which platforms to launch targeting

The next step is to choose social networks for advertising. Here everything depends on your target audience. If you sell products to young people – definitely TikTok and Instagram. For a business with a serious target audience, VKontakte and Telegram are more suitable. But it is better not to limit yourself to one social network, but to choose 2-3 where your potential customers are.

Selecting the optimal formats

Each social network has different advertising formats. Pictures, videos, carousels, stories – the price of targeted advertising depends on the format. Usually, simple posts with pictures are the cheapest. But you will have to pay more for video advertising or advertising in Stories.

Again, the choice of format depends on your goals and the specifics of the product. For image advertising, spectacular videos are great. And for sales, it is better to use carousels or advertising of products on VKontakte with the ability to immediately place an order. Our recommendation is to test different formats and, based on the results, choose 1-2 most effective for your audience.

3. Calculate the budget for the target

How much do you need for the first test?

When planning the cost of targeted  telegram database advertising, it is better to start from the test. In a week or two, you will understand which creatives, platforms and audiences give the best results. And based on this data, you can scale the budget.

telegram database

The amount for the test depends on the niche  How to Plan a Budget  and competition. For example, for a small business in the region, 15-20 thousand rubles per week will be enough. But to promote a large brand in Moscow, you may need 200+ thousand. On average, we recommend setting aside 30-50 thousand rubles for the test, this is usually enough for the first conclusions.

How to calculate the budget for the main campaign

After the test, you need to decide on the budget for the main campaign. Here, start from the goals you set. For example, if you want to receive 30 applications per day at a lead price of 500 rubles, then the monthly budget will be:

30 leads x 500 rubles x 30 days = 450,000 rubles

And if your goal is 100 new customers per month with an average check of 5,000 rubles and a conversion rate of 2%, then we calculate it like this:

100 buyers / 2% conversion = 5000 clicks
5000 clicks x 15 rubles (average click price) = 75,000 rubles

The point is to have the budget tied to the goals. Then you immediately understand how much money is needed to achieve these goals. If it turns out to be too much, review the goals. Or increase the budget if you want aggressive growth.

4. Optimize expenses

How not to waste money on the wrong audience

One of the main mistakes of beginners is chasing cheap clicks and impressions. They choose too wide an audience, and as a result, the ad is shown to everyone. And this in turn leads to a drain on the budget, because you have to pay for every useless click.

Therefore, it is better to narrow the audience sad life box  and show ads only to those who are likely to be interested in your offer. Let the clicks be a little more expensive, but they are targeted. You need to save your budget wisely, otherwise you will get a lot of useless traffic.

We monitor the conversion price

The main performance indicator in targeting is the conversion price (lead, purchase, subscriber). This is what you need to track first. If the price is within reasonable limits, it means the advertising pays off. But if it is constantly growing, it is time to optimize the campaign.

What can influence the conversion price:

  • Quality of creatives and texts – the more the interplay between accountability and responsibility  interesting the ads, the more clicks and conversions
  • Audience relevance – show ads only to potential customers
  • Warming up the audience – not everyone is ready to buy right away, sometimes it takes time
  • Promo codes and promotions are a good incentive to make a purchase decision

Regularly analyze statistics and make adjustments. Targeting is not a one-time story, but a constant work on advertising optimization. This is the only way you can reduce the cost of targeted advertising and get more return on every ruble invested.

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