If you are one of Facebook’s 1.47 billion daily active users, you’ve probably engaged with an ad on the biggest social media platform out there. Whether it’s watching a video, scrolling through a multi-product ad, or clicking through to snag a great deal, most of us have discovered new brands or made purchasing decisions because of Facebook.
Even so, as a business owner, you rightfully want to understand more about Facebook advertising before you plunk down precious marketing dollars. Is it really worth it to make Facebook ads part of your digital marketing strategy?
Well, we’ll tell you this much: Facebook’s advertising revenue increased by more than 3,400% between 2009 and 2016. So Facebook marketing is working for somebody.
But if you still have doubts about whether or not it’s the right call for your business, here are a few things to consider.
Facebook’s Massive User Base is Great for Targeted Advertising
The numbers alone are enough to make a marketer drool.
1.47 billion daily active users.
2.23 billion monthly active users.
And our favorite stat: 52% of consumers report that Facebook influences their buying choices—both online and offline.
Your brand can reach a lot of buyers on Facebook, there’s no question. What’s even more meaningful, however, is that Facebook’s massive user base makes it even easier to target the exact buyers who are right for you. With 22% of the world’s population on Facebook, you know the numbers will still be substantial for your target segment.
Plus, Facebook’s Ads Manager allows you to target users right down to where they live, their interests, which pages they like, even the companies they work for (a huge benefit if you’re in the B2B arena). When you set up Facebook Pixel, you can also retarget users who have interacted with your ads or page, and you can create Lookalike Audiences to find new prospects similar to the customers who already love your brand.
Bottom line: Facebook is a gold mine for target marketing.
Facebook’s Ad Testing Capabilities
You can advertise your business on Facebook for as little as $1 per day. While you probably will want to spend quite a bit more than that to get meaningful results, the potential for low-cost advertising does speak to one very important digital marketing strategy:
Gone are the days when a bold, new advertising strategy called for a significant financial investment, total commitment to a new campaign, and loads of false confidence. With Facebook Ads Manager, you can run an ad for an affordable rate and cancel it any time you want.
You can be bold. You can be creative. You can learn more about your audience’s interests and ad engagement. And you can do all these things with very little risk.
Facebook as an Advertising Tool
Facebook is constantly updating its offerings, both as a social media platform and as an advertising platform. As a result, Facebook ad options are getting more and more sophisticated, inspiring entirely new forms of customer engagement with user-friendly ad options, including:
Multi-Product Ads: These ads allow users to scroll through product images, so you can promote multiple goods (or blog posts or services) in a single Facebook ad. Each image links to the corresponding web page, so customers can click through if they like what they see.
Offer Ads: With these ads, Facebook users can easily access your latest discount or limited-time offer. Customers can click straight through to the offer.
Event Ads: Not only does an event ad make it easy for users to buy tickets to your event with one click, it also lends itself to easy sharing. Customers who are excited about your event can share the ad with friends and publicly mark themselves as “interested” or “going,” which boosts the visibility of your event.
Video Ads: Facebook users watch 100 million hours of video on the platform every day. There’s no question video is becoming non-negotiable in digital marketing. Facebook makes it as easy as possible for you to engage users with eye-catching video ads.
These are only the particularly flashy options. Facebook also helps you connect with new customers through classic photo ads, boosted posts, and reach ads designed to grow brand awareness at the local level. Even better, Ads Manager helps you create these ads by setting specific goals for awareness, consideration or conversion, depending on where you are in the marketing funnel.
Mobile Advertising on Facebook
Here are a few statistics every business owner should take into account when devising a digital marketing strategy.
- On average, we spend more than four hours on our mobile devices every day.
- 19% percent of that time is spent on Facebook. Not on social media—on Facebook specifically.
- 727 million Facebook users access the platform exclusively through their mobile device.
There is no question that mobile advertising is an essential part of your digital marketing strategy, no matter your industry. Not only will Facebook help you design ads that are optimized for mobile; it’s also the go-to distraction tactic for the vast majority of your target audience.
The ROI of Advertising on Facebook
Now that we’ve covered some of the major benefits of advertising on Facebook, let’s get to the actual numbers. How much should you expect to invest in Facebook advertising?
It depends on your industry, but here are some ballpark figures:
- The average CPC (cost per click) is $1.68.
- The average CPM (cost per million impressions) is $7.29.
- The average CPA (cost per action) is $18.68.
How does that compare to your other options? Consider the most competitive advertising category: financial advisors. The CPC for this industry averages $3.77 on Facebook. On Google, these same businesses can expect to spend $50 per click.
So what about the other side of the equation? What can you expect to get out of this investment? Across all industries advertising on Facebook:
- The average CTR (click through rate) is .90%.
- The average conversion rate is 9.21%.
The numbers are in your favor. Statistically speaking, your business stands to see a positive ROI from Facebook advertising. But only if you have a deliberate, data-based digital marketing strategy.
Optimize Your Facebook Ads
It’s true that Facebook’s Ad Manager does a lot of the heavy lifting for you in terms of automation and audience targeting. However, like all aspects of digital marketing, effective Facebook advertising depends on a clear, deliberate strategy. If you throw ideas at the wall just to see what sticks, you’re gambling with both your time and your money.
Facebook is one of the most valuable marketing tools available to businesses today. No matter your size or industry, this platform gives you easy, affordable access to the exact buyers you want to reach. Ads Manager allows you to design and monitor your ad performance, giving you maximum control over the long-term success of your marketing efforts. And Mark Zuckerberg’s undeniable drive to always be at the forefront of social media technology ensures that Facebook will likely remain one of the most versatile and advanced advertising platforms out there.
The right Facebook advertising strategy can grow your company faster than you might imagine. If you could use assistance making the most of this asset or would like additional insights, we invite you to reach out to us here.