More business owners are asking about Facebook advertising. This new platform for transmitting your message is exciting and has many advantages. If you’re considering advertising on Facebook, here is what you need to know.
There’s room for you. Only 6 percent of Facebook pages advertise on the site, and 70% of those come from outside the U.S. It’s easier to stand out in a new space. Of course, Facebook’s advertising growth has increased 50 percent from 2015 to 2016, which means more people are going to try it.
Facebook ads have advantages. Facebook ads often increase brand exposure and brand recognition and, in most cases, lead to increased growth. Part of this is because social media has offered us a place to target customers in much more detail and track whether it’s working. You can narrow down your ad to only be shown to people in a certain location, of specific ages, who like specific things. It’s the most surgical we’ve ever been able to get, which means if your business seeks a specific audience, it’s a useful tool. Here are the 98 data points FB uses to target ads.
Because of that, some customers expect immediate and big results from Facebook. But like with most marketing, results may vary. Christy Knutson, social media coordinator for Davis Graphic Design, explains:
“Business owners often expect results to be the same across all product/service advertisements as well as across different ranges of time. In reality, your results will shift as your competition increases/decreases, your messages change and as natural elements in the buying cycle fluctuate. This is normal (and in most situations, a good thing) so it helps to expect these shifts and evaluate the results thoroughly to get the most out of your budget.”
It’s relatively inexpensive. The average cost per click is $0.64, but that varies widely among business owners because of who and how many they target. Still, compared to Pay-Per-Click, it’s often much cheaper, with an on-average cost of one-third of Google Adwords.
To determine a budget, Knutson recommends business owners first identify their goals.
“If your goal is to increase the number of clients you serve, run the numbers to determine the average lifetime value of a new client. Next, consider what you are comfortable paying to get a new client. This percentage is different for everyone.
“Once you have a maximum cost per acquisition you can set a starting budget. The beginning of each campaign (roughly for the first 2-4 weeks) you will be in test mode. We will experiment with different messages, visuals and targeting to find your best value. Once you find your ‘sweet spot’ ad or ad series that is converting within your ideal range, the question isn’t what is your ideal budget, but rather how quickly do you want to scale up?”
Is Facebook Right for You?
Given these factors, Facebook advertising might be right for your business. Are you:
- Willing to try something new?
- Ready to test a few things to see what ads work on Facebook and which don’t?
- Seeking a specific audience?
- Comfortable with a small ad spend at first, then ramping up later?
If so, let us know. We can help you create a Facebook ad campaign that’s right for your business.