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The problem with spending too little on your ads

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How much is "cutting your marketing budget" hurting your potential?

I understand everyone needs to keep costs as low as possible. But, there are real, tangible reasons why you need to keep a sufficient budget for your digital marketing.

Not enough data to take action

The first and most straightforward reason you need to spend adequate money on your ads is because without doing so, you won’t have any concrete data to base your marketing decisions on.

Let’s say you decide to run Google ads, and you set a budget at $3/day. With an average click cost of $1.50, That means that your ad budget brought TWO people to your website that day.

At that rate, you’ll never gain enough insight into your ads to determine whats working and what isn’t.

Getting stuck in Facebook’s “learning phase”

When you launch a new campaign, the ad sets within that campaign enter the learning phase.

To exit the learning phase, your ad set must generate 50 result actions in ideally 7 days.

This means that if you’re trying to run a campaign for sales, you’ll need 50 sales in a 7 day period for your Facebook ads to really “start” and exit the learning phase.

This is a very high number for many jewelers, especially those who only get one or two sales a month from their web store.

During the learning phase, Facebook is still figuring out how to best target and spend your ads. Additionally, if you edit your ad set, you reset the learning phase and must get to 50 result actions again, starting from 0.

Facebook’s machine learning needs a certain number of visits, clicks, and purchases to deliver better results.

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