Facebook advertising is a form of a digital advertising on the Facebook platform. Content can appear on the News Feed or in the right column on a desktop site. These ads go to users based on their locations and personal information to maximize the potential for a click-through.
Generally speaking, Facebook ads are a way of generating interest or brand awareness for a product or service. While there is a Marketplace section, most people use the platform to socialize with friends. Of course, you can increase the likelihood of conversion to your brand by optimizing targeting options.
Facebook lets you target users based on their ages, interests, locations, sex, education, and more. The wealth of marketing information lets you create ads that directly connect with potential customers. Taking advantage of this information likely will generate more interest in your products and increase the likelihood that consumers buy something from you because the ads are more relevant to their needs.
Advertising on Facebook starts with developing a strategy and content. Each of your ads should include eye-catching images and copy that attracts readers’ attention and interest. Facebook only allows you 25 characters for headlines and 90 characters for body text, so make each word count.
The next step is to bid on Facebook ads, which come with a suggested bidding range. The goal is to generate high click-through rates to attract people to your website or a call to action. Facebook provides a graphic for every campaign showing the size of its audience and how many people you reached.
After purchasing ads, it is essential to monitor their performance. Facebook will provide key metrics, including click-through rates and impressions. This feedback will allow you to make informed designs about future ads. For instance, if the click-through rate for a specific ad is low, you should stop serving it and replace it with something better.
While Facebook Ads and Google AdWords are both effective advertising platforms, their approaches are entirely different. Facebook uses strictly social networks, and because social media has the most users, it offers a highly competitive platform for attracting audiences. Google focuses on paid searches where advertisers bid on keywords that they expect their target demographics will be using when searching the web.
Facebook gives you complete control over your budget and how much you are willing to pay per click. What’s more, there is a greater versatility in advertising mediums as you can use videos or images, in addition to text. Facebook’s global audience also provides more data that marketers can use for precision targeting.
While Google’s approach is broader when targeting audiences, it is the most used website and generates trillions of search queries each year. The broader audience promises an immediate influx of traffic that you can see with Google Analytics. Plus, Google Ads provides several advertising options for optimized engagement.
While the definition of a good Facebook ad may be somewhat subjective, there are some agreed-upon characteristics you’ll need for effective advertising. One of the best ways to attract eyeballs to your ad is to use high-quality images. Whether you license photos or make them yourself, they need to stand out from generic or stock images.
If you have text on your ad, it shouldn’t be a struggle for viewers to read. The font should contrast with the background, so that it stands out, and it must be in an easily legible position. The text should convey why the product is worth purchasing or at least raise the interests of the viewer.
When it comes to copy, you have only 25 characters for the headline and 90 for the body. Your copy needs to garner someone’s interest quickly and even stir a desire to learn more about or buy the item. One way to generate conversions is by having a call-to-action that tells people what to do – such as “visit today” or “enroll now.”
Facebook is one of the most popular websites going, with 80 percent of all internet users logging on to it each month. The company also has attracted a diverse demographic of users, including 65 percent of seniors. If you want to connect with potential customers, Facebook advertising is a must.
Fortunately, Facebook advertising is relatively cheap. When you compare it to traditional ads, like billboards, TV commercials, or radio promotions, you will save hundreds, or even thousands of dollars. Generally speaking, you can reach a targeted audience of 1,000 people for just $5 to $10.
Once you start advertising on Facebook, you will see the results in the analytics – and in your bottom line. The company offers performance insights, so you can see what consumers are engaging with and why. The measurable information also will provide insight into improving your existing campaigns and lowering your cost per acquisition.
The Facebook pixel is a fragment of code that will help Facebook monitor and record user activity once enabled on your website. It will even tag visits to your website and allow you to run further Facebook ads at them after they have left.
You can monitor such actions as “events” or conversions using the Facebook pixel custom event variations in the code and link them back to the campaign, ad set and ad creative.
Doing this makes for easier optimisation and a clear picture of how efficient the advertisements are. You can log purchases on your website from your Facebook campaign with the Facebook pixel. For instance, you may even build a custom audience for remarketing “cart-abandoners.”
Marketing expenses for Facebook can vary quite substantially, depending on your market, the product/service you are selling. We typically recommend advertisers start with a media budget of at least $33 a day, or $1,000 per month, and scale up from there.
When we say media budget, we are referring to the money that goes to Facebook directly for purchasing ads on their network.
Starting with this $1k minimum per month media budget is enough to drive decent traffic through your Facebook ads campaign and determine if it is working properly or not. Any less, and you’re not getting enough data back.
On top of the media budget, there are also agency fees to consider. Agency fees cover the time and effort of your agency to design the ads, write the ad copy, build out the account and continually tweak, test and improve, as well as report on results and provide ad-hoc consultancy. Our fees are in the $1,000 per month ballpark, but can be customised based on your business and goals.
The short answer – yes.
The long answer? Running ads on Facebook works extremely well, when done right. And what’s the right way?
Strong creative and offer + dialed in audience targeting + sending traffic to a high converting landing page experience.
The reason it works is due to the reach of Facebook. 15 million Aussies are using the platform every month. That’s nearly 75% of the population.
And sure, maybe not everyone is posting any more. But bet you bottom dollar, most people are still scrolling through that news feed each month. So, a well placed ad? That can generate strong results.
So, although people on Facebook are not actively in “hunt mode” for a product or service, if you hit them with an ad that is appealing and drive them to a landing page that compels them to convert, you can target users that are “close to being in the market” – a huge piece of the pie.
The key to making this all work is to work with a Facebook agency that knows what they’re doing. We know a great one 🙂
You can get results from your Facebook ads within 3 to 4 days of going live. This is the recommended period when you should check each ad’s performance. If the ad is doing well, you can boost it to reach a wider audience. If it performs lower than expected, you can refresh the campaign using new images or test it with a different target audience. The most successful Facebook ads understand the customer journey, from awareness of the product to closing the sale. In general, divide your ad campaigns according to the 40/60 principle, which is that 40% of your campaign should focus on raising awareness and 60% on lead conversion.
Additionally, you can use different copy styles to appear before targeted audiences so that new audiences will see a different ad from those who have already purchased from your business. Always begin with the objective of your ad: is it to introduce the product, lead customers to subscribe to your website, or to encourage your audience to purchase your product? Once you understand that typically 1 out of 100 leads will convert to a sale, use different tactics to improve the success of your Facebook ad campaigns.
Compared to other online advertising options like SEO agency or email marketing, Facebook ads are effective quickly. The cost of the ads is worth the high quality clicks that drive growth for your business. Facebook ads have an average of 20% more clicks and 70% higher conversion than search engine ads, and the cost per conversion is over 75% lower. Given these numbers, most businesses find that advertising on Facebook is affordable and profitable for them.
However, it is important to review your business to see if Facebook ads are a good fit for your marketing strategy. Typically, if yours is a B2C company directly advertising to customers, your costs will be lower than a B2B company that targets other businesses. The Facebook Lead Ads tool is also a great way to get leads at a lower cost by automatically filling the user’s data within a Facebook form and guiding them to your website. You can design your lead form with custom questions and data privacy information, choose which fields will be auto-filled with user details, and integrate the ads into your CRM system. This gives you an effective platform for reaching a greater audience at a lower than average cost per lead.
ROAS (return on ad spend) is simply the amount in dollars you receive for every dollar you spend on advertising. It focuses on the effectiveness of each individual ad, each campaign or ad series. ROAS is calculated by dividing the revenue made from the ad campaign by the cost of the campaign (revenue/cost). A good ROAS for Facebook ads is between 4 to 10 for sustainable profits, meaning that if you invest $100 in Facebook ads, you should ideally receive between $400 and $4,000 in return. Businesses that reach the 4:1 ROAS can sufficiently cover their Facebook ad marketing expenses, and 5:1 ROAS and higher means that the revenues received from ads can be directed into growing the business. Any ROAS that is below 3:1 requires a fresh marketing perspective.
It is possible to optimise your ROAS by encouraging your customers to make high-value orders, promote your best selling or most unique products, use pricing strategies that gather the highest number of new customers, and focus less on mature markets and more on emerging markets. The key is to experiment and adapt your campaign to the data you receive from the moment you go live so that you can drive up and maintain your ROAS consistently.
Advantage: The Facebook ads manager interface is very comprehensive and offers videos, tutorials and helpful tips to guide navigation and derive insights.
Disadvantage: For a beginner in Facebook advertising, this interface can be overwhelming, with so many data points and terminology that will take time to understand.
Advantage: Facebook ads can help a business target very small, niche audiences that align with their goals, thanks to years of end-user data and evolving Facebook algorithms. This means that virtually any business can use Facebook ads to reach their customers and improve their profits.
Disadvantage: Depending on the niche, some audiences may prefer more expensive ads such as video or animated content, rather than text or image displays, which may drive up the costs for producing the ads. Each business should understand its target audiences and adjust its ads for the highest possible returns.
Advantage: Facebook ads offer your customers a chance to interact with your business, from reacting (likes, shares) to giving valuable feedback in the comments that can help build your business.
Disadvantage: It is easy for a competitor or an unhappy customer or employee to offer negative feedback on your Facebook ads that will be seen by other potential customers, putting greater emphasis on excellent customer service.