Using Facebook Ads

In our last post, we talked about one of Facebooks newest features, Facebook Jobs. This post we are going to answer some questions we have gotten about Facebook Ads and why small businesses can benefit from using them.

There are 2 things all small businesses know when it comes to digital marketing:

1: If you’re not already all in, you are behind!
2: It is going to cost you, of course how much depends on your business, your industry, and your revenue goals

In todays market, we have seen Facebook Ads be massively underpriced for the potential ROI you can achieve with running quality campaigns. In fact, we have seen our clients which have a $500 monthly budget towards FB ads and see a gain of 10-15 leads per month. As with any good marketing campaign, the success will come down how good the creative is and if the offer fits what the viewer is currently looking for.

Let’s go ahead and dive on in to why your small business should be using Facebook Ads..

Benefits of Facebook Ads

Small business owners are now seeing that using social media can offer great benefits for their business. However I am always surprised on the number of those owners who have not at least tested an actual Facebook Advertisement (separate from the general “Boost” feature).

Get targeted

Like most online ads, Facebook Ads run on a PPC (pay-per-click) or PPI (pay-per-impression) system, but because of the amount of personal information that is within the Facebook database, you can get extremely specific on the type of people you want to see your ad.

The banner ad you have for you country club in Dallas Texas on Golf Inc’s website is cool, but the guy who may accidentally click it who lives in New York will have zero interest in actually entering in his information for a club on the opposite side of the country. However, Facebook will allow you to target down to a 1 mile radius around your physical location.

Maybe you sell high-ticket bicycles and want to only show it to people who are showing a revenue of $100,000 per year or more. With Facebook Ads, you can do that!

For example, you can target 27 to 55 year old males, who live within 15 miles of your country club, that show interest in golfing, tennis, or social events, and have an income of $150,000 or more per year. Now you have narrowed the people who view your ads down to high quality leads, versus the average Joe that doesn’t really fit your ideal audience.

Affordable

Facebook Ads are surprisingly much more affordable than many other forms of online ads, in fact Buffer wrote an article about how far just $5 can get you!

To get slightly more specific on the cost comparison, let’s take a look at what it would cost to run a TV commercial.

If you were trying to target people watching your local news station at 12-noon, for a 30-second spot, you can be looking at anywhere for $200 up to $1,500. With this option, you have to hope that your audience is even paying attention to the TV and not on their phone scrolling through Facebook.

Now, to run a Facebook Ad for 24 hours in a 25-mile radius around Dallas, Texas (for example), with a $200 budget, you can expect to be reaching upwards of 180,000 people. With this option, you are putting your business, your product, your name right in front of where they are paying attention – their Facebook.

By comparing these numbers, we can see that Facebook Ads is a much more inexpensive, efficient, and targeted choice. However we are in the business of making money, so what is the ROI (return-on-investment) on these?

The Truth Behind its ROI

Like anything in life, you can search Google and find a thousand articles on why Facebook Ads don’t work, and in reality, for some businesses, the might not. Not everyones ideal audience is on Facebook, not everyones ideal customer spends time on social media, like any form of marketing there are going to be limitations and exceptions.

However, there are usually 2 main reasons on why they don’t work for a business. One, the business didn’t have a solid strategy or target audience outlined. Two, they had the wrong intentions or too high of expectations for Facebook Ads.

Direct sales

You have to keep in mind that usually the consumer isn’t necessarily looking to buy something when they see your ad, so you may not see a high conversion rate if you are looking to sell directly to the consumer.

You can, but you have to be smart with the strategy, it is a matter of creating a legitimate ad campaign and strategy and making sure you are executing it properly. B2C (business-to-consumer) businesses actually tend to see a better ROI than B2B (business-to-business) businesses, but it comes down again to the strategy behind it.

What tends to work the best

From our experience with our small business clients and even country clubs that are looking to gain leads, we have seen 2 forms of ads work best.

  • Increasing brand awareness – focusing on getting your name out and encouraging a simple call-to-action
  • Capturing leads – usually using landing pages that have a small section of information and then a form to fill out

You Aren’t Stuck

Now the one really cool thing that Facebook Ads have over traditional advertising is the real-time analytics that you can see on how people are responding to your ad and how relevant it is to the audience you entered.

If you aren’t seeing results from it and maybe it is clear that it isn’t relevant to the audience you entered, you can actually edit your target audience of the ad, as it is running! This is one of the most important thing you should be remembering when running a Facebook Ad and also when trying to see if it is worth spending money on – you can always adjust your strategy!

We have seen some great success for our clients using Facebook Ads, in fact we offer a Facebook Ads package for small businesses and country clubs who are just looking for that service! Contact us if you’d like more information on it!


Some terms to keep in mind when looking at Facebook Ad and its Social ROI:

  • Impressions – The number of times your ad was seen
  • Reach – The number of individual people your ad was shown to
  • Likes – The number of people who liked your ad
  • Shares – The number of people who saw your ad and shared it
  • Comments – The amount of comments on your ad
  • Frequency – The number of times your ad was shown, on average, to a user.
  • Click Through Rate – The percentage at which a consumer saw the ad and click through to the landing page.
  • Page Likes – The number of likes generated for your Facebook page because of the ad.
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Chris Degenaars

Author Chris Degenaars

Strategy & Operations at Long Drive Agency

More posts by Chris Degenaars
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