How much should you spend on remarketing?
People love round numbers and rules of thumb, so let’s start with one: Use the 80-20 rule.
Dedicate 80% of your A budget is an amount you're willing to spend on your Facebook campaigns or ad sets on a daily or lifetime basis. More to prospecting and 20% to remarketing. But these things impact that approach…
1. Your budget. If you’re spending $10 per day, you’ll probably spend most of your budget on remarketing. That’s the low-hanging fruit and the easiest way to make an impact. You can make a much bigger impact with prospecting as you spend more.
2. The size of your remarketing This is the group of people who can potentially see your ads. You help influence this by adjusting age, gender, location, detailed targeting (interests and behaviors), custom audiences, and more. More. If you have a new business with a new list and virtually no traffic, you can’t spend much on remarketing. If you have a huge list and lots of traffic, you have more flexibility to spend more there.
3. Repeat customers. This is a decent portion of your remarketing. But repeat customers aren’t a thing for everyone. If you only sell one piece of software, most customers are one-time buyers. If you sell coffee beans, people will need to refill every week or two.
4. Is it effective? That’s all that matters. How effective is your prospecting? How effective is your remarketing? Adjust the percentages to find the sweet spot.
This is a start to get you going. What do you do?