One of the most common questions real estate professionals including agents, brokers and investors ask is this: “how much should I spend on Facebook Ads?’ Well, you probably already know that it’s a very tricky question and the answer depends on a verity of factors. But if you are starting out with Facebook Ads, it makes sense to follow certain Facebook advertising practices so that you don’t end up wasting money.
In this guide, I will explain how much you should budget for real estate Facebook ads in the beginning and how different factors come into play:
Your Facebook Ads budget when you are starting out
Let’s assume you are new to Facebook advertising and want to build your audience from scratch. It means your Facebook page has a couple hundred fans – mostly friends, relatives or the people in your sphere of influence.
In the beginning, you should keep your budget under $10 per day. You can run a variety of campaigns such as (retargeting, page likes, engagements and lead capture). Which type of campaign you should initially focus on depends on your goals and the type of Facebook ads funnel you have set in place.
I have seen that when the budget is over $10 per day, you get diminishing returns over a long period of time. It means that clicks, likes and leads will cost you more as you continue running the same ad.
Facebook ads budget for an aggressive real estate marketing campaign
A $10 budget is obviously insufficient if you want to launch an aggressive real estate marketing campaign.
Depending on your budget, you can launch multiple campaigns with different objectives. I have worked with a lot of real estate professionals and based on the campaigns that I am currently running for my American clients, here is what you should expect to spend for different types of ad objectives:
Getting new pages likes and Facebook fans
I have seen that you may need to spend anywhere from $.50 to $1 per Facebook fan or page depending on how competitive your real estate market is. So for 10,000 pages likes or Facebook fans, you may need to spend anywhere from $5000 to $10,000.
If you are planning to capture emails of your prospects, you would need to set up a Facebook Ads funnel. Once it is in place, you can start capturing emails by offering free e-books, free access to home listings and other services such as free home value estimation.
You should expect to spend anywhere from $0.5 to $2 per lead. It means that for collecting 1,000 email subscribers, you may need to spend from $500 to $2,000.
Link clicks and retargeting
Do you want to share the story of your brand through a blog post?
Want to get clicks on your featured property listing pages?
Or want to drive traffic to a landing page on your real estate website?
Want to retarget people who have already visited your website?
Well, website referrals are going to cost anywhere from $.10 to $.50 per link click. So if you want 10,000 clicks for your landing page, you may need to spend anywhere from $1,000 to $5,000.
A lot of real estate professionals are building mobile apps. Getting people to install a mobile app is probably one of the most difficult ad objectives, but Facebook makes it surprisingly cheaper.
You should expect to spend from $1 to $3 per app install. So if you want 1,000 app installs you may need to spend from $1,000 to $3,000.
I hope this guide will help you to budget for your real estate Facebook ads. Keep in mind that it’s extremely important to be sure of what you are doing when spending money on Facebook ads. If you are not careful, you will end up wasting a lot of money. I recently published an article in which I discussed how to lower your Facebook advertising cost. Be sure to check it out. It’s also very important to target Facebook interests and demographics the right way.
Let me know in comments if you have any feedback or questions!