That’s not only a quote from Facebook, it’s an interesting piece of trivia. When Mark Zuckerberg launched Facebook on February 4, 2004, there were no adverts. Zuck (as he’s known to his friends), said he was less interested in money than making users happy. He also mentioned that advertising may be introduced in the future to help offset the cost of Facebook’s servers.
‘The future’ turned out to be about 4 weeks! And while those early Facebook ads were very basic and choice was limited, they launched what is now a massive money-maker for the company.
These days, it’s all about Facebook Ad optimization. That’s why this post is about crafting your ads to maximize ROI.
Let’s get into it!
3 Million Advertisers on Facebook
There are currently around 3 million advertisers on Facebook, with 30% of those based in the US. And from 2015 to 2016, the number of Facebook advertisers grew by 50%. Now that’s all fine and dandy, and the stats are definitely there to show Facebook advertising works.
Are you doing enough to get your money’s worth?
In just the same way you would evaluate other advertising methods (and adjust accordingly), so you must with Facebook ads. In fact, there are proven ways in which you can substantially improve your ROI through Facebook Ad optimization.The first rule is this: there is no one-size-fits-all approach, and you must change your ads to suit the need. For example,
The first rule? There is no one-size-fits-all approach. You must change your ads to suit the need. For example, optimising your headline or text, or even changing the color can make a huge difference.
Improving Your ROI Through Facebook Ad Optimization
Facebook offers some useful advice on how to improve your ROI on ads, and it starts with goal-setting. For example, if you want to use your Facebook advertising to drive more people to your website, use Clicks to Websites adverts. Or, if you want more user interaction with your Page posts, choose Page Post Engagement adverts.
Clicks to Websites is a good method for evaluating cost, as it allows you to calculate the advertising cost per new customer.
Easy, right? Then use Adverts Manager to monitor your campaign and make adjustments in order to improve the results.
You probably will have noticed that the broader your target audience on Facebook, the less bang you’re getting for your buck. We would suggest that you can improve your ROI by creating several smaller target audiences. You can then compare the results.
Conversion Tracking a Must
The key to successful Facebook advertising is targeting the demographics most likely to purchase your goods or services. Sounds obvious, but sometimes the easy fix is the one that’s overlooked. Knowing your
Knowing your target audience will not only generate more leads (and therefore sales), it will save you money on your advertising and thereby increase your ROI.
Another key factor in getting the best value out of your spend is WHERE you place your adverts. Facebook gives you choices for a reason.
For example, do you want your advert to the side, or in newsfeeds? You can work out what is best for you by testing different positions.
If you’re new to Facebook ads, it’s likely that you’ve seen a nifty little gadget on your page that says Conversion Tracking. You’ll find it under Ad Manager.
It’s possible you don’t have a clue what it does, so you ignored it.
Don’t! You need to not only install conversion pixels but learn how to exploit them to get a better ROI. Conversion pixels allow you to learn more about visitors to your site so that you can adjust your advertising to ensure more conversions. You can also use this information to further define your target audience.
You can actually create multiple conversion codes on Facebook. Conversion codes mean tracking the type of user visiting your page, as well as how they behave once they arrive.
For example, did they complete a purchase or leave without completing?
1.71 Billion Monthly Active Users
Why is this important? Because, as of the second quarter of 2016, Facebook had 1.71 billion monthly active users. That’s a lot of potential customers, if you post the right adverts to attract them.
This makes sense, right? Forget for a moment that we’re talking about Facebook. Let’s just discuss advertising in general for a moment, and let’s say you sell mobility aids for the elderly. Now, you wouldn’t advertise your products in a magazine aimed at teenagers, would you? You would target your products at, say, over 60s. You might also target those aged 35-50, who might be caring for elderly parents.
However, if you sell children’s toys, you would want a much wider target audience, including the kids who want the toys, plus the parents and grandparents who might buy the toys. It’s simply a case of applying that same logic to Facebook.
Purchases Influenced by Digital Interactions
Remember, the main reason your potential customers are on Facebook is to socialise, not to shop. But while they are browsing each other’s posts, you can catch their eye and drive them towards your product/website. So rather than a conventional advert, use a visual or a hook, such as a Giveaway.
Interestingly, the percentage of Facebook advertising revenue that comes from mobile ads now sits at 79%.
Mobile ads are becoming a big deal on Facebook. Indeed, the company says 49% of in-store purchases are influenced by digital interactions, more than half of which take place on mobile.
However, while people use mobile in 45% of all shopping journeys, the majority of sales still occur in brick-and-mortar businesses. But Facebook have an app for that! Or, at least, they have a way of utilising online advertising to achieve that.
Mobile Advertising Campaigns
In June this year, Facebook announced new solutions for businesses to drive people to their stores and measure the amount of store visits and in-store sales following their Facebook mobile advertising campaigns.
It also introduced dynamic product ads to help retail and e-commerce marketers promote products to the people likely to be interested in them, like website and mobile app shoppers. Since then, dynamic product ads have helped marketers increase conversions and lower cost per acquisition across devices.
An example of this is JUNIQE, an online art retailer, which increased conversion rates by 50% while reducing the cost per purchase by 63%, using dynamic product ads.
The main reasons advertisers get a poor ROI on Facebook advertising is because they have failed to define their target audience, and they are using the wrong type of advert in the wrong place. Or they have run one advert only, didn’t get the expected result and therefore gave up.
Successful Facebook advertising takes time, skill and knowledge. That’s why it’s often a good idea to simply hand the responsibility over to a professional!