Facebook Ads Price Malaysia

Are you looking to advertise your business on Facebook? Understanding how Facebook advertising costs in Malaysia and budgeting options are structured is crucial for successful campaigns.

For those of you who don’t know what Facebook Ads is, it is one of the digital marketing‘s paid media channel where businesses can buy advertising space in Facebook’s platform to reach their target audience.

Facebook offers customisation options such as target audience, ad placements, and conversion activities to help you reach your target audience most efficiently. However, one of the important options that are often overlooked is budgeting. The budget is vital in determining the Facebook Ads price Malaysia that you will be paying throughout the advertising period.

Facebook Budgeting Options

For Facebook, there are two budget options: daily and lifetime, each with advantages and disadvantages. Selecting the correct one can have a positive impact on the success of your campaign.

Note:

If you want to set aside the budget for your monthly Facebook ads advertising cost, you can have your daily budget estimate multiply by 30 to get the estimate figure.

We’ll go through each of these in depth below, but first, let’s talk about which tiers you can choose to monitor and control, either from the campaign or adset levels.

Before that:

Let’s define a campaign and ad set level first.

What is the Campaign level on Facebook?

In Facebook advertising, a campaign is the highest organisation level, representing your advertising objective, budget, and schedule. Within a campaign, you can create multiple ad sets, which are groups of ads that target specific audiences, placements, and budgets.

What is the Adset level on Facebook?

Ad sets are where you define your target audience, ad placements, and budget for each specific group of ads. For example, you might create one ad set for people within a particular location, another ad set for people of a specific age range, and another ad set for people who have previously interacted with your business.

Creating multiple ad sets within a campaign allows you to test different audience targeting, ad creative, and bidding strategies to see which performs best. This will enable you to optimise your advertising and get the best possible results for your budget.

Now, let’s go through how to set the budget in Campaign and Adset levels.

Budgeting in Campaign-Level

Budgets on Facebook have traditionally been handled at the ad set level. However, Facebook just unveiled Campaign Budget Optimization (CBO), which allows advertisers to select a campaign-level budget. Which Facebook subsequently distributes ad sets depending on performance.

A CBO uses machine learning on Facebook to serve ads from whatever ad package is projected to produce the most significant results. Here’s a summary image of how Facebook could benefit your marketing efforts:

In this example, each ad set has a daily budget of RM10 that Facebook spends daily. Each generates a few conversions, for a total of ten conversions.

You set an RM30 campaign-level budget in the second example, like the combined ad set budgets from the first example. Facebook would (in theory) send it to the ad sets with the highest performing results, resulting in ad set spend levels of RM7, RM18, and RM5 and a total of 15 conversions.

While this chart appears to be a no-brainer, this is sometimes true. CBO is susceptible to variances in audience size.

Suppose you have three ad sets in a campaign, two with 100,000 users and one with 32 million users. In that case, Facebook will spend most of your campaign budget on the most significant audience size because it has the most potential. Regardless of the number of conversions or returns, the smaller ones see.

Using CBO, you can define daily minimums and maximums. You can set the ad set can only spend a specific amount. In contrast, others must spend at least that much every day.

They can assist in alleviating some of the service concerns, but they are not a one-size-fits-all solution.

If you intend to employ ad-set minimums and maximums budgets, keep them from governing your entire campaign’s daily budget. This prevents Facebook from learning and optimising for the highest-performing audience. It is equivalent to using ad set-level budgets.

Instead, allocate only half of your spending to your ad settings and let Facebook handle the rest.

Now, let’s look deeper into the advantages and disadvantages of daily vs lifetime budgets on Facebook.

Daily Budget

Daily budgets are the simplest to create, but they have some nuances that all advertisers should know. With daily budgets set, Facebook will spend up to the amount you choose per ad set per day. It is relatively straightforward, and it is. 

The Disadvantage

The disadvantage is that Facebook will not only spend up to that daily budget limit, but it will actively try to spend the entire daily budget you’ve provided every single day, regardless of performance.

The ad set budget in the figure above is RM70/day, precisely the average spend for the last 31 days.

Facebook targeting works more like Display than Search. Thus it works to get impressions in front of a specific audience rather than responding to fluctuating demand. With daily budgets, Facebook will show your target demographic as many impressions as it needs to make up your daily cost.

It may sound foreboding, but it isn’t necessarily a terrible thing. More on that in a second.

The second disadvantage of daily budgets is that you must arrange your adverts for specific times or days of the week. Your advertising will run continuously with daily budgets (unless you have 3rd party tool to assist).

Suppose your business strategy, products, or calls to action require that your ads only display during specific times or on particular days of the week. The daily budget might not be the right fit for your business.

The Advantage

First, I’d like to revisit the “spending the entire budget every day” concept. This spending pattern provides for much easier budgeting.

Facebook spends the same amount daily, making managing your budget and financial planning much more manageable.

Furthermore, suppose your ad set is functioning well, and you’re getting the desired outcomes. In that case, there’s no harm in increasing your daily budget to receive those results as quickly as possible because future performance is never guaranteed.

Second, if you create an always-on, evergreen campaign, Facebook daily budgets are the most straightforward alternative. This allows you to keep your advertising active at all times without changing the end dates.

Furthermore, daily budgets are a terrific option if your weekly, monthly, or quarterly budgets vary regularly. As we will see, lifetime budgets work best when a budget is established and left in place until the end date.

Daily budgeting is the preferable option if you anticipate frequent budget adjustments. Daily budget might help you determine the daily Facebook Ads cost in Malaysia for your reporting purposes.

A solid practice to remember when altering daily budgets is to limit budget adjustments to 20% of their original amount for each day. Any change that is larger than this will have a detrimental impact on the Facebook algorithm and performance.

If you need to double or cut your spending in half, you should make changes every day in 20% increments until you accomplish your goal. (I understand this is only sometimes possible, but this is the best option if it is.)

Lifetime Budget

With lifetime budgets, you tell Facebook how much money you want to spend for the entire campaign and then specify when the ad set should expire. They work differently than daily budgets and have their own set of advantages and disadvantages.

The Advantages

With Lifetime budgeting, Facebook will alter daily expenditures based on campaign performance. On days with good performance, Facebook will spend more than the average daily budget to attain the lifetime objective.

It will underspend when performance is weaker to conserve funds for another day. You will only utilise the lifetime budget you established at the start of the campaign at the end (or adjusted as the campaign went on).

Many advertisers see fluctuating spending as an advantage because, in theory, it means better campaign results.

Lifetime budgets also include ad scheduling, allowing you to choose which days of the week and hours of the day you want your ads to run.

This is the budget kind for you if you need adverts to run during specified hours. That being said, you should only use this if necessary.

For example, suppose your call to action is to call in, and no one answers the phone. In that case, that’s a bad user experience, and you should schedule your advertising.

Nevertheless, suppose you’re only scheduling them because you think everyone will need more time to complete a form after 8 p.m. In that case, start with all days and hours running and see what performance you get first.

People are only sometimes able to use their phones during normal business hours. Therefore they may take action in the middle of the night.

The Drawbacks

With the good comes the bad, although for Lifetime budgets, the “bad” is more of a sense of convenience than anything else.

With Lifetime budgets, daily spending might vary greatly, making it difficult to estimate or plan on what type of coverage you’ll receive on any given day.

Suppose you’re in a crucial season for your business and must ensure you have coverage or want to know what to expect regarding spending. In that case, daily budgeting may make more sense.

Advertisers who use lifetime budgets must include an expiration date with their budgets. By doing so, you’re telling Facebook how much money it has to spend within that period.

This option is attractive if you are positive there will be no modifications to the time frame or budget. But, if you are likely to receive additional funding or lengthen or shorten your marketing, this may not be a good fit.

Although you can change the budget and the end date, doing so will affect how Facebook prioritises your money.

Suppose you schedule an ad to run for two weeks but have to reduce it to one after a few days. In that case, Facebook will adjust and spend a considerably more significant amount on those last few days to try to spend your Lifetime budget during the abbreviated timeframe.

Suppose you must modify the date range or budget. In that case, adjust the other to balance out and minimise any significant changes in average daily expense to keep performance from plummeting.

Conclusion

Managing budgets on Facebook is a dealer’s choice option. Still, there is no right or wrong way to accomplish it, just some instances when one solution makes more sense than another.

So, there you have it, an overview of Facebook advertising costs and budgeting options in Malaysia. By understanding these options, you can optimise your Facebook advertising strategy to reach your target audience efficiently and effectively.

If you’re seeking an expert help managing your Facebook ads to maximise your budget and reach your desired audience, don’t hesitate to contact me. Let’s work together to create a successful Facebook advertising campaign for your business.