Episode 342
The Average Budget You Need to Run Meta Ads & Google Ads
Kasim and Ralph discuss the changing advertising landscape on Meta platforms, emphasizing that nearly 4 billion people are monthly users. They also share the minimum ad budget Tier 11 requires to run Meta Ads and Solutions 8 requires to run Google Ads for clients, and how this specifications…
Show notes
Kasim and Ralph discuss the changing advertising landscape on Meta platforms, emphasizing that nearly 4 billion people are monthly users. They also share the minimum ad budget Tier 11 requires to run Meta Ads and Solutions 8 requires to run Google Ads for clients, and how this specifications negatively affects small businesses. Learn more in this video.
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Full transcript
[00:00:11] Kasim: There's almost 4 billion people monthly on this platform billion, like this 3. 8 billion people on meta platforms every single month. That's half the planet. half of the planet is living on less than 2 a day. So we'll say that meta has 100 percent of the commercially viable planet.
[00:00:27] Kasim: Good point. I don't think there's much more expansion you can really do. Yeah. George Friedman talks about this. I just read his book, by the way. It was phenomenal. where is it? I think it's The Storm Before the Calm by George Friedman. And he's a geopolitical strategist who's very middle of the road.
[00:00:40] Kasim: He's not like a sensationalist like a Peter Zaihan. or even like a Ray Dalio. Like he just views things a little bit more calmly. And what he said about technology was so impactful, he said that, technology will only have the economic impact consistent with its ability to make changes in our day to day lives.
[00:01:02] Kasim: the very beginning, something like meta rolls out or Facebook or before Facebook, Friendster, whatever, and the impact that had on our lives was staggering. And so it has a staggering impact on one person's life. So there's the X axis, let's say, but then there's the number of people who can it impact.
[00:01:18] Kasim: So there's the Y axis. And so now it's the amount of impact per person and the number of people impacted. And when you see things like that, you see this, just this opportunity to exponentially impact humanity, but it tapers. like you just said it, man, it's the end of the taper.
[00:01:32] Kasim: and with the taper comes stasis and with stasis comes efficiency and with efficiency comes massive commoditization. And really what that means is meta today's a whole lot like television was in the seventies and eighties. It was a ubiquitous truth and a prerequisite. If you were going to advertise, you had to be on TV, had to, but because they got so efficient with it, it became really hard to break into.
[00:01:57] Kasim: I think it happened in Google before it happened in meta is we're seeing small businesses priced out because of this small businesses can't have this conversation. You can't be a small business talking about brand performance, dude, you remember it used to be able to spend 500 bucks a month Facebook and get real.
[00:02:10] Kasim: Results. Yeah. Like you could do something and then 500 became 2 grand and 2 grand became 5 grand. What's y'all's minimum ad spend right now? What's the lowest you'll take a client? we'll start brands that don't have any spend, but have, that's a trick question. Okay. the average company for us spends, oh God.
[00:02:29] Kasim: Probably anywhere from 50, 000 to a couple hundred thousand dollars. Our average is 52, 000. Our average is 50, 000. Our top side is seven figures, but we won't take anybody less than 10, 000. if they're less than 10, 000, we call it an incubator account. And they basically have to sign in blood that they know this is doomed to fail.
[00:02:45] Kasim: And if it succeeds, it's a gift from God. The caveat to that are companies that are either venture angel or private equity backed that want to launch in the U S and have runway for it. Like you'd have to have a marketing budget to be able to successfully navigate the digital marketing landscape, or the other side to that is.
[00:03:05] Kasim: I've got a great offline. We're talking to a customer right now that spends half a million dollars a month on direct mail, but no digital. all you do is you take what they are doing. It's a simple formula and there'll be a great client for us is like that type of, it's so simple.
[00:03:21] Kasim: don't think it's simple, but it's in a challenging than not having that it's in a challenging niche. You have a successful business. You want to translate that over, not replace your direct response. They want to use this as an adjunct. So trick question there, both of those, the venture backed want to launch in the U S or.
[00:03:42] Kasim: have runway, have some money to be able to spend, but then the other one successful business want to go online. Both of those have zero ad spend. Now it's the local regional business that we would then defer off to our local regional division, like our startup division, and they would be able to help them.
[00:03:58] Kasim: But for tier 11 proper, yeah, it's, you gotta have Some ad spend, which basically shows that you have a product or an offer resonates with the market. And that typically starts with like 10 to 30 grand per month in spend. It depends. We'll do an analysis of it and everything else, but that just shows you've got a valid product.
[00:04:16] Kasim: Unless you're just burning money,
[00:04:17] Kasim:
About Google Ads
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