Facebook ad costs are sky-rocketing and you are probably thinking, “Facebook Ads might not be right for me.”
Well, I’d say, Facebook ads can be a great source of traffic, leads, and sales if you follow the points I’ve mentioned below.
Know your Customer Avatar/Buyer Persona:
Researching about the customer and understanding their pain points is, I’d say, half the battle won. This is because once you know your customer avatar, you know who you are talking to, what is their pain/challenge, their lingo, their location, their economic status, their relationship status and how your service will improve their lives.
Have a look at this handy sample Customer Avatar Template by DigitalMarketer.
And this is crucial to laser targeting, creating an ad copy that speaks to your audience and effective ad creative.
Let’s take an example.
I want to run ads for selling Football Boots. If I target fans of Football star Lionel Messi, I would be competing with other brands/advertisers. I would be targeting people a very broad audience- including those don’t watch but don’t play football. Because everyone knows him. And such an audience is unlikely to buy Football boots.
But if I were to target people who follow a lesser-known football player, say, for example, Jordan Pickford, or a lesser-known football club, then I’m targeting a VERY SPECIFIC audience. They know a lot more about lesser-known football players and football clubs. This is the kind of audience that actually plays football and therefore need football boots. And I would have lesser competition. As a result, the ad cost would be lesser.
By the way, even I did not know Jordan Pickford before writing this post! 😉
Laser-targeting will also help you improve ad relevance score. Why and how? Simply because your audience resonates with your ad. This is Facebook’s way of rewarding advertisers who create relevant ads.
Check for the audience overlap for a set of audiences you have selected. You would want to avoid a high percentage of Audience overlap because that means that you would bid against yourself in the Facebook auction in order to serve ads to the same people.
Ad copy- that speaks to the audience:
You can do this only when you speak your audience’s language and know, feel and understand their problem. It needn’t be grammatically perfect.
Start your ad copy with a hook- something that grabs their attention and makes them want to read further.
Don’t give your audience the feeling that you want to sell your service/product to them. People don’t like being sold to.
Imagine that you are actually talking to them about their pain points. Then give them a solution (i.e. your product/service). After all, it’s all about the customer.
Show them how they can benefit from what you have to offer. Remember that people buy for emotional reasons.
And let’s not forget that the ad copy should guide them to take the desired action.
So, keeping in mind all these points will help you come up with an ad copy that resonates with your audience and makes them want to take the action you desire.
Also, consider testing a few ad copies to select the best-performing ones.
Ad creative- that disrupts!
A lot of people run Fb ads these days. So much so that, sometimes people are tired of seeing ads.
Prevent ad fatigue by using different images or videos as you don’t want to show the same image to your audience repeatedly.
Test your ad creatives and use only those ad creatives which are performing well. Keeping 2/3 ad creatives that perform well help prevent ad fatigue.
Video ads perform better than images:
A video that actually takes people from their ‘BEFORE’ state to the ‘AFTER’ state, narrates a story and stirs the person emotionally has a great impact.
You have only the first 3 seconds in a video to capture the audience’s attention. Hook your audience in the first 3 seconds and they are most likely to go ahead and watch the video for a few more seconds and might even watch till the end.
Yes. Pixel your website, your landing page and especially the success or thank you pages of your funnel.
This is crucial because you want to segment your audience- to differentiate leads, buyers, people who abandoned the cart, people who bought your core offer, so on and so forth.
You would not want to run a conversion campaign targeting an audience that does not even know you/your company (i.e. Cold audience) because they are not interested in you. Such a campaign will not give value for money.
Instead, provide free value to the cold audience. Let them engage with you. Excite them by providing value in exchange for their email address.
Pixels help track people who take the desired action on your website or who are interested in reading your website content, etc. This would help you run an ad to a specific set of audiences, for instance, to your leads to help them ascend the value ladder by offering a super low-ticket offer, a tripwire.
Retargeting people with high purchase intent will give a high ROAS.
Such an audience is more likely to buy what you have to offer.
To learn more about Facebook pixel visit Facebook for Business
Instead of running ads all the time, it is better to run ads at a time when the audience is more likely to see your ad on Facebook.
Bidding 6 cents higher than the highest suggested bid means you are outbidding your competitors. If your ad gets a high click-through rate (CTR) and if your ad is compelling enough you will get a lower cost per click.
Setting Bid caps as per the lifetime value of the lead is another way you could be lowering your ad cost.
Don’t get tricked by conversion rates:
Have a closer look at the results when reviewing the ad campaigns.
When comparing 2 ad campaigns, looking at the conversion rates alone is misleading. Instead, look at the cost per conversion also since conversion rate for 2 audiences might be different but their cost per conversion might be the same or at least close by.
For example, take 2 ads sets for a lead generation campaign.
Ad set A: $200 CPM and a 10% conversion rate, which means you get 100 leads at $2 each.
Ad set B: $100 CPM and 5% conversion rate, which means you get 50 leads at $2 each.
Here, the cost per conversion for both ad sets is the same in spite of differences in conversion rates. Both the ad sets are equally effective.
Cost per 1000 impressions gives an idea of how much competition is there on Facebook and how much will your ad cost. So, go for audiences with lower CPM and maximize your ad spend for such audiences.
Do not try optimizing campaigns initially:
This is because the data collected is not yet substantial enough to decide if it is performing well or not. Be sure to give at least 3-5 days to get an idea of the cost per pixel.
The key takeaways are-
- Know your customer avatar and target a very specific audience
- Check for Audience overlap percentage
- Use video ads whenever you can
- Ad copy should speak to the audience and not at the audience
- Set up pixels on the success page or thank you and segment your traffic
- Use Retargeting ads
- Set bid caps
- Have a closer look at the Ad metrics and take time to analyze before shutting down an ad set.
- Give enough time, at least 3 days, to collect data and then optimize your campaign
Hope this information helps you in cutting down Facebook ad costs. And I’m sure you have encountered many challenges in running Facebook ad campaigns. Let me know how you overcame these hurdles in the comments.
If you haven’t found a solution, then let’s brainstorm in the comments below!