Learning Objectives

By the end of this lesson, learners should be able to:

  • Set advertising budgets.
  • Explain bidding concepts.
  • Monitor campaign spending.
  • Manage advertising campaigns effectively.

4.1 Advertising Budgets

Daily Budget

Amount spent each day.

Lifetime Budget

Total campaign budget.

Start with a manageable budget and scale based on results.

4.2 Bidding Models

Model

Meaning

CPC

Pay per click

CPM

Pay per 1,000 impressions

CPA

Pay per acquisition

CPV

Pay per video view

Choose the model that matches the campaign objective.

4.3 Campaign Structure

Campaign → Ad Set → Ad.

Organized structures simplify reporting and optimization.

4.4 Budget Allocation

Allocate more budget to:

  • High-performing audiences,
  • High-converting ads,
  • Profitable campaigns.

Reduce spend on weak performers.

4.5 Monitoring

Track:

  • Spend,
  • CTR,
  • CPC,
  • Conversions,
  • CPA,
  •  

4.6 Common Management Mistakes

  • Changing ads too frequently,
  • Ignoring data,
  • Running campaigns without tracking,
  • Overspending early.

Practical Activity

Prepare a KES 20,000 monthly advertising budget for a small training institution.

Lesson Summary

Budgeting and bidding determine how advertising funds are spent, while ongoing campaign management ensures efficient use of resources