How to set marketing budgets for Facebook and Google in Saskatoon

Facebook and Google are the most effective local marketing channels in Saskatoon.

Facebook is by far the largest social media site in the world, with Saskatoon alone having around 192,000 Facebook users. Marketing on Facebook can help you reach people who matter the most to your business, based on their location, age, and more.

Before you can start budgeting, you need to define the size of your target audience. Let’s say you’re a Beauty Salon owner and you want to reach all people living in Saskatoon who are female between 18 and 40 years old.

Use facebook to calculate your audience

You can use Facebook advertising tool to calculate your target audience size:

  • Number of Facebook users in Saskatoon: 192,000
  • Number of Facebook users in Saskatoon who are female: 98,000
  • Number of Facebook users in Saskatoon, who are female, between 18-40 years old: 60,000

Now let’s say you want to reach all of them, and only them, and bring at least 1,000 to your website every month so they can read more about your Beauty Salon and make bookings.

Plan your budget

Assuming average CPC (cost-per-click) is going to be around 0.50 CAD, then we can make a simple calculation that to get 1,000 clicks, we need to invest around $500 CAD into Facebook marketing every month.

Your digital marketing goal is to make money, not to spend money. So now you need to measure how much new business you are getting from this. Let’s say 2% of your new website visitors are making bookings. This is 20 new clients every month, and if the value of a new client is bigger than $25 CAD, then you’re already making more from Facebook than you’re spending.

The next step

After mastering Facebook, start growing your business with Google.

Google is by far the largest search engine in the world, and around 80% of people in Saskatoon use search engines to find local product and service information. That’s around 200,000 Saskatonians who are using online searches to find information on local products! On Google you can reach people at the very moment that they’re searching for the things you offer.

Let’s say your Beauty Salon wants to find more clients. What would be a better time to show your ad to people, than when they are searching for it? If they are already searching for Beauty services, then they are most likely interested what you have to offer.

You can use the Google advertising tools to calculate the number of searches related to your business (e.g. “beauty salons in Saskatoon”; “hair stylists”) and calculate an optimal budget for your business.

There are around 2,000 searches every month in Saskatoon for Beauty Salon related keywords, and you can expect around 10% of these people will click on your ads. That means that approximately 200 people would click on your ad and visit your website for more information. The average cost for beauty related keywords in Saskatoon can be around 5 CAD per click, so a good budget per month for you is 1,000 CAD.

Measure your results!

It is really important with Google AdWords that you take the time to measure what keywords make you money and optimize your budget. Let’s say you start with 800 different keyword combinations and you find that 100 of them are working best for you, now you can turn off 700 keywords combinations that don’t make money and substantially lower your budget.

To measure this you need to set up Google Analytics account and the measurement for keywords. You want to measure what keywords make you bookings and new clients. It doesn’t really matter if the keyword click costs you $0.5 or $5 CAD, what’s important is whether or not the keyword combination is bringing you new clients.

With Facebook and Google marketing, it is important to understand that you shouldn’t be measuring how much money you spend on media, but rather the difference between media spending and money made from new clients. If you make more money from new clients than you spend on marketing, then you really don’t even spend anything.

Read more about Internet marketing from our next week’s post, “Facebook Targeting to Capture your Audience”, or come visit us to learn everything you need to know.

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