When it comes to managing a social media ad campaign such as Facebook advertising (run by the newly-named Meta), you want as much bang for your buck as you can get, right?
And yet, finding the perfect balance between spending enough to make it on your demographic’s radar and not spending so much it cuts into profitability can be challenging for ecommerce businesses.
Smart ad performance starts with knowing how much to spend on ads (and how to spend it), as well as removing obstacles that (spoiler alert) credit card companies can cause.
The Key to Success in Facebook Ad Spend
While there are a lot of articles out there about how much to spend to reach Facebook users, the fact is: a higher spend gets more results, assuming you’re smart in how you build your ads and which conversions you’re paying attention to.
Sure, you want the lowest cost possible for link clicks and you’d love your marketing budget to not reach astronomical heights, but the truth is: the metrics you’re looking for often come with a higher average cost.
So how much money are we talking?
If your business is new, you may optimize your Facebook ad spend aggressively, investing as much as 10-12% of revenues into ads. If your business is established and you just want to keep your name in the game with retargeting ads, you might spend just 5% of revenue.
Set yourself up for success by establishing benchmarks up front. If you know what the typical CPC, CPA, or CPM is for your industry, you can see how your own conversion rate stacks up. As you experiment with different ads, you can measure against your own benchmarks.
Another key to success is diversifying the types of ad campaigns you set up. If you create similar ads over and over, you may not see as much growth as you will if you create ads in several buckets:
Promotions of a product or service
The Relationship Between Spending and Billing on Facebook Ads
You might assume that if you’ve got a healthy marketing budget, Facebook will let you roam free when it comes to creating ad sets and campaigns. Not so.
Often a company will use multiple credit cards across social media marketing campaigns in an effort to keep campaigns rolling without issue. But sometimes Facebook ads manager or another advertising network will decline a card if something doesn’t match up. For example, if the credit card on file has a different name or address than what’s used for the ad account, the card may be declined.
This can cause the person running the ads to have to scramble to find out what the issue is or find another card. This is time that should be spent running ads that will drive sales, but because of this issue, that time (not to mention money) is wasted.
How Credit Card Limits Can Affect Your Facebook Ad Spend
You may have trouble meeting your Facebook ad budget if your credit card company gets in the way. While you have a daily budget with your Facebook ad manager, you may also have limits for credit card spend. Sometimes the two don’t get along.
If you have been spending more than usual on ads with your credit card, the credit card company may opt to review your spending limits and put caps on them, presumably for your own safety (to prevent fraud). But what that does is disable your ability to fully leverage your advertising budget, and you may miss out on opportunities for sales.
If your card is declined for this reason too many times, your Facebook ad campaign may be frozen. You then have to call your bank to get the credit card limit raised, make a payment on the card and wait for it to be applied, or use a different card. And then you have to wait for Facebook to unfreeze your account. What a headache.
Making payments on your credit card every day to clear the slate doesn’t make sense because it’s still going to take a couple of days for your payment to post and potentially another day or two before you can start using your credit card again—what’s more, it’s a time-consuming process.
The Right Way To Spend on Facebook Ads
If you want to be able to continually reach your target audience without hiccups in ad delivery, a traditional credit card may not be the best solution.
For advertisers, a calendar month doesn’t make a lot of sense as a payback period. Yours may be a week or six weeks. Having a virtual credit card that is more flexible with that payback period can be a huge boon to advertisers.
That’s exactly what dash.fi aims to provide: peace of mind to advertisers who can’t afford to have ad campaigns on hold.
Earn Cash Back on Facebook Ad Spend
As if simply being able to run campaigns uninhibited wasn’t enough, dash.fi also offers up to 3% cash back in your first two months of ad spend along with 1-½% after that—with no cap on spend. That’s a significant amount of money you can reinvest in advertising to boost your campaign budget!
Avoid Campaign Shut Offs Due to Credit Limits
The fact is: credit card companies are missing a huge opportunity when it comes to covering Facebook ads costs. Advertisers spend millions of dollars annually to reach customers on social media and create brand awareness, and they pay their bills on time. And yet, we’re seeing a high instance of credit cards being declined and ad networks like Facebook putting campaigns on pause—not because the advertiser has done anything wrong, but because both Facebook and your credit card provider often make it difficult for brands to advertise.
There’s a better way. A smarter way to cover the cost of advertising on Facebook. With dash.fi, you can have a different virtual number for every ad account, network, or campaign for easy management, and your credit can scale as you grow your advertising budget. You can get credit limits 10-20x higher than what you would be offered by traditional credit cards; and use advance spend controls to monitor where you’re spending money.
The Proof is in the Pudding
Don’t just take our word for it. Our clients have been able to increase their Facebook ad spend by 30% or more in just 12 months, once cumbersome traditional credit cards stopped tripping them up.
They’ve also seen a 20% reduction in advertising costs with our scale concierge, which provides performance data on 5,000 media buyers across $1.2B in spend to help you identify, recruit, vet, and negotiate your next media buying team’s contract.
When it comes to Facebook ad spend, the system, as it currently stands, is broken. There’s a disconnect between what credit card companies offer advertisers and what they actually need when it comes to purchasing ads.
dash.fi solves the problem.