Let’s say you own a pizza website. You have a database of regular customers. You trust Facebook enough to upload your database and create a lookalike audience. You have an unbeatable 50% discount promotion that you know your customers love, and people similar to your customer would like. As soon as you hit the Publish button, you will have hundreds of people ordering pizza online, in a matter of hours.
It is undeniable that you got your marketing right. It is flawless. The problem is the numbers. You are expecting hundreds of people, in a matter of hours, spending how much on ads per day? The following are the numbers from a real Facebook campaign:
As you can see, the cost per sale is $953.71 (!). What this means is you need to spend that much money daily, to get a customer per day. Of course, a person ordering pizza (especially if it is a delicious pizza) won’t cost that much but will cost something. You need these baseline numbers to know how much you can spend per day, and how many customers you can expect.