How Much Should Your Boutique Spend on Facebook Ads

How Much Should Your Boutique Spend on Facebook Ads?

One of the first things to note here is that there is no “one size fits all” strategy as each boutique has different overhead costs, goals, cash flow, inventory levels, comfort levels, and funding strategies. There’s no right or wrong, it’s just important to clarify as you always want to make the decision best for your business and that the information below is more a general range of what myself and the team see.

IMPORTANT things to note:

• Make sure you’re spending 55% or more on cold audiences! That means excluding purchases and website visitors from your campaigns for new users. We typically spend 65%+ of our total budget on cold audiences as a rule of thumb.
• Each boutique has a different starting place depending on where they’ve grown organically and we take this into account. For example, a boutique that is already spending $500/day on ads and doing 100K is a lot different than one that is doing 500K and never spent a dime on ads.
• We launch new boutiques at $100/day if they’ve never advertised before. We will increase this per request of the boutique and their comfort levels during the launch no problem. Anything less than $100/day is not recommended for the funnels our team runs. That doesn’t mean you need to start there, just means less spend doesn’t fit our growth system.
• If a company comes to us already spending a certain level, that’s where we want to start.
• Depending on your operation stage, your boutique may or may not need to scale back or increase spend. If you at capacity, you may want to scale back. If you just ordered deep or invested in a video, you may want to scale up. That’s why we use daily budgets internally.
• Additional budgets will shift on where you spend to match your business goals. For example, increasing app spend, focusing on clearance items, or a big sale, your spending should be dynamic and changing based on your seasonal/quarterly goals and objectives.
• We like our clients to budget daily with us while keeping a total marketing budget that’s a percentage of their revenue.
• Facebook ads costs go up and down daily depending on competition, time of year, quality of content, and competition within audiences. You want to adjust accordingly. For example, we spend more on retargeting in November cause cold audiences are very expensive. In January, it’s the opposite and we spend more on cold. Overall $100 spent in November will typically reach fewer people than $100 in January as there is more competition.