Transcript
Hello and welcome. In this episode, we are going to talk about what impacts the price an agency quotes you for Facebook advertising.
So what goes into a quote for Facebook advertising? What factors is the agency taking into consideration when they are providing you a quote for advertising? Like the video I did last week on Google Ads, Facebook Ads has its own factors that influences how complex the campaigns are going to be and that then impacts what the management fee and the setup fee is going to be from the advertising agency.
Now, there are again different ways agencies bill or invoice for Facebook advertising. There are agencies out there that only invoice per lead. They’re like a pay as you go kind of thing. So you don’t have to pay an upfront fee of $500 plus ad spend. You pay them once they actually start to get you leads or appointments. There are many ad agencies that do, do that on the same other side of the coin, there are agencies that charge a retainer to manage your campaigns on a regular ongoing basis. In true honesty, as someone on the inside, don’t pay per lead or per appointment, because trust me, you’re actually going to end up paying more per appointment or per lead than if you just had them on retainer.
That’s the trick to it. It sounds really good upfront, but when you start to do the math retainer versus pay per lead, you usually end up paying more when you pay per lead. That being said, there are case situations where even I will do a pay per lead. It depends on what it is and what the client is about. So what factors go into, how much does a campaign cost you?
Well, the first one like Google Ads is your ad spend. The larger the budget that you have, the more complex the campaigns get, the more audiences we can target, the more ad copy we can task, the more retargeting campaign we can get. So for example, on a small budget at $20 a day, I can only really run one campaign, be it conversion campaign usually or a landing page view traffic campaign but if I’m doing a $100 a day or $200 a day, I can actually start to build out complex, intricate retargeting campaigns to push people through the funnel using advertising, but there’s two factors to that. One is not just the ad budget, but how large are the audiences.
So that’s usually what comes into my mind when I start to quote for a prop or for doing some management fees is how large are the audiences that I get to use for retargeting, because that determines how complex the retargeting campaigns are going to be, am I able to re-target just using E-commerce an example, add to cart checkout and… Sorry, backing up.
Am I able to re-target people that visit particular product pages, category pages, add to cart or checkout? If the budget is small and or there’s not enough traffic to those pages, especially the checkout page, I can’t run the campaigns. So on Facebook, Facebook themselves will tell you, you need at least a hundred people in a custom audience to re-target them and even then you can only really use a reach campaign to get to them.
If you were going to do say a conversion campaign for someone who’s at the checkout stage, you almost need a thousand people hitting that checkout stage page in the last 180 days, ideally only 30 days or even shorter. It really depends on the product, but if someone abandons cart, you could in theory do 180 days. So those are the complexities that come into play when quoting for a campaign, what’s the budget and how complex can I do the retargeting, and the audience size has more to do with it than the budget, but a larger budget means I could put more budget at the top of the funnel to start pushing people through to the middle and bottom of pile.
Various elements that could push the costs of a project up, the biggest one is video, not in uploading the video, but if video creation is required, that can be a huge, you know, quickly add three, four figures to a quote, simply if the video has to be created. Video is a huge commitment, very effective, but a huge commitment. So I usually don’t start there, especially with a new client, unless they really have their heart centered on it.
So various things that you can look for when you’re trying to find an agency to partner with, to do Facebook advertising for your business, ask them what their partner status is. It’s actually pretty easy to get just the basic level of partner. It’s only if I… I checked just last week, about $10,000 in… Is it the last month in the last three months in order to reach partner status, that’s not pref… Or they call it preferential premier partner status. They have three levels of partner status, but the very entry level, I think is only 10K. So ask for that.
You can ask them if they have blueprint certifications, but I’ll be honest, I don’t even have the blueprint certifications because I think it’s a rip off. I’ve never in seven years of doing this ever heard of anyone benefiting from having a blueprint certification, unless they’re trying to get hired by an agency, but when it comes to an agency hiring me, it’s never come up. They can take the courses and everything, but you have to actually pay for the certifications and they used to be actually in-person, of course, with COVID it’s a little bit different, we won’t go into that.
So that’s one thing you can ask for. Definitely ask for case studies, ask for examples. A transparent, honest agency should have no problem showing you current campaigns with the other client’s personal information, grayed out. We can take a screenshot nowadays and gray out the personal information, but still show the results. They should be okay doing that.
I don’t think I mentioned this in the Google video, but I can mention it here, as an advertiser, in order to keep my current standing, I’m obligated to give you the client a monthly report. In that report needs to show how much went to my management fee and how much went to the ad spend. Many agencies, myself included, require that the client pays for the ad spend and then just pays me the management fee to keep it a little bit simpler, some agencies don’t. They pay for it all. There’s no right and wrong reason, but they have to be providing monthly report showing the breakdown and the campaign results and if an agency is not providing you with monthly reports and kind of skirting around the issue, it makes you wonder what are they hiding and it’s actually in the advertising policy that you must provide monthly reports for Google and Facebook.
Big red flag, if they’re not providing those and not being upfront. I even have the capabilities of adding a client portal where they can go in and look at all of their campaigns across the board at any time they want. They get their own login.
So those are various elements that goes into setting up campaigns for Facebook advertising and as an agency, what factors I take into play to provide the quote for the prospective business. If you have any questions about that, throw it in the comments. Let me know if I missed something or something wasn’t clear, let me know. I’ll do another video and I’ll bridge the two together. Thanks
