Are you a business owner or a marketer who needs to diversify your digital marketing strategy? Or, maybe you’re seriously looking into using Facebook to promote your products and services? Either way, you’re probably wondering how effective Facebook advertising is and whether or not you should use it for your Social Media Marketing.
Well, first thing’s first: if you’re not on Facebook then you’re missing out on a lot. Facebook is currently the biggest social network throughout the world. It has over 2.5 billion monthly users and 1.66 billion daily users. And 7 million of these are advertisers who are already taking advantage of this many potential customers. So if you haven’t started advertising on Facebook, today’s the best time to do so.
But popularity aside, if you’re not using Facebook because you’re not sure of its effectiveness, then we’re here to help you with that.
How Effective is Facebook Advertising?
Before you start spending time, money, and effort, it’s only natural that you first find out whether a specific advertising strategy is effective. And what best way to determine if Facebook works than with data and numbers, right? So, we’ve made a list of some of the statistics that prove Facebook’s effectiveness as a marketing strategy.
- 8% yearly increase in Daily Active Users (DAUs) – Every year, there has been a steady increase of 8% in Facebook’s DAUs. And in June 2019, the recorded DAUs have reached 1.59 billion on average, according to Facebook. So, with this many people using the channel every day, you’ll have a higher chance of getting your ads noticed and seen.
- People using Facebook’s mobile app spends an average of 57 minutes per day – According to Flurry Analytics, users spend more time on Facebook than any other app, including other social networks, news apps, music apps, shopping apps, and others. Therefore, it is the best place for your advertisements. Just make sure to optimize your website for mobile phones if you’re planning to use it as your landing page.
- 63% of men and 75% of women use Facebook – A report from Pew Research shows that there’s almost an equal distribution among genders when it comes to using Facebook. So you’re highly likely to reach your target market, regardless of what gender it is.
- 26% of users who clicked ads on Facebook went on to make a purchase – This data came from Kleiner Perkins and it shows that Facebook advertising is effective. If you want to increase your conversion rate, ensure that you have an optimized landing page. And, if your shoppers choose to engage through phone calls, provide them with a seamless call experience.
- Ads on Mobile Facebook and social media generated over 36 billion calls to US-based businesses in 2019 – According to BIA/Kelse, consumers often call a business after seeing their ads on social media. Meaning, ads on Facebook and other social media networks are effective in catching users’ attention.
How Does FB Advertising System Work?
Concerning costs, here are a few things you should know about Facebook ads system:
- Advertisements work on an auction: Notice how Facebook doesn’t bombard its users with ads? This is because it limits the number of ads every user can see. To secure an advertisement placement, advertisers need to bid against each other. So whoever bids the highest gets to show users their advertisement.
- Be ready for competition: When you advertise on Facebook, always remember that you’re not only fighting for ad space against businesses similar to yours. Instead, you’re competing against all the advertisers with the same target market. Even if you’re selling women’s clothes, you’ll have to compete with businesses that sell makeup, offer gym memberships, shoes, and every other company that will target the same customers as you.
- You can create ads for Marketplace: When you create advertisements in Facebook’s Ads Manager, you can make it appear in Marketplace too. For an additional expense, you can reach more people and have a higher chance of making a sale. How to advertise on FB Marketplace? Use your Ads Manager tool and set your budget. Select your ad placement and wait for the approval. If you’ve followed FB advertising guidelines, then your ad will go live and consumers can see it while browsing their Facebook apps.
- Costs of Facebook ads fluctuate: When advertising on FB, expect rates to change. Today, the CPC for your industry can be $1.25 but this can change after a week and jump to $3.00. So keep a close eye on your FB ad costs.
How Much Does it Cost to Advertise on Facebook?
The answer to this question depends on you. Facebook allows you to run ads according to your budget. You can spend as little as $5 a week or go big with $20,000 a week. With Facebook, you can decide how much you want to spend on advertising. You can set the budget that works for you. This is what makes Facebook ads extremely affordable.
Now, let’s be more specific and talk about the figures. Using the detailed study from WordStream, Facebook ads cost from $0.45 to $3.77 per click, depending on the industry. The cheapest cost-per-click (CPC) on Facebook are apparel ($0.45 per click), travel and hospitality ($0.63 per click), and other retailing industries ($0.70 per click). These are the industries with the largest audiences, hence their low CPCs. On the other hand, the highest CPC on Facebook is at $3.77 per click for financial advertisers.
So what does this all mean? Well, the cost of advertising on Facebook will depend on two things: your budget and the type of industry you belong to.
Facebook Targeting Tips
First and foremost, you need to know what type of content you must boost to an audience. Make sure that the content you’re boosting is the one that was well-received by your other business social media accounts. For example, if you had a Facebook post on your business page that garnered a hundred likes and shares, then pick that one.
Second, you must see which type of audience fits for that specific content that you want to boost for. Keep in mind that with the right audience, the better your ad will perform , which increases ad conversion and lowering the cost per conversion. Thus, saving you time and money.
Third, you need to use Facebook Insights to your advantage. This gives you a chance to see how well your competitors perform with their ad boosting with the same audience as yours. Use this information to improve how you boost your ads on your business page. It’s a trial and error risk, but you can’t have a full blown rainbow without a little rain.
Fourth, choosing a custom audience will help you enhance your Facebook targeting boost. When using the custom option, you can select your own targeted audience at your own will. Of course, you can still opt for Facebook’s default audience option, but having the freewill to choose on your own is a huge plus.
Every business, no matter how small it is for now, should fully utilize the power of Facebook targeting. It’s the secret of growing your business and to let the world know about your brand. By following this brief guide above, we gurantee that your small business will grow in no time.
Through Facebook ads, you will have the ability to reach a specific number and type of audience. And, you can get the results you want. Marketing through this channel also allows you to track the performance of your campaign in real-time. Thus, you can make the necessary adjustments to meet your goals. So if you’re not using Facebook to promote your products and services, now is the perfect time to start. Visit Stowell Agency to know more about Social Medica Marketing.