When it comes to making money, Facebook is one of the leading social media businesses. During the first financial quarter, its revenue had jumped 57% from $3.3 billion to $5.2 billion. Nearly 80% of this comes from Facebook Adverts that are displayed on mobiles, mainly because they cost more to render.
The costs for Facebook adverts can be high. So does it mean that Facebook adverts are worth the expense? Or is there another way for businesses to reach their audience?
The Cost Of Facebook Adverts
Facebook Adverts are essentially a PPC campaign, just limited to Facebook. This gives you a smaller audience to speak to than on Google, but the actual ability of the campaigns is probably better. Campaigns could lead to audiences buying, liking your page, subscribing to your mailing list or just visiting a web page.
These are all useful activities when it comes to the online digital marketing path.
However, we have seen conversion rates as high as £10 per purchase. If this is software based, this might not be so expensive. However, for products, this could be unprofitable.
For likes, we tend to see ‘likes’ cost approximately £1 per like. That isn’t too bad, but it has to lead to a greater number of long-term sales. This can’t happen unless you are ensuring that your audience is perfectly aligned to your ideal customer.
Managing Facebook Adverts
Facebook adverts are also very time consuming to manage, and several activities need to take place. For instance, you need to ensure that you are monitoring your adverts and adjusting them for best practice. There is no golden rule when it comes to advertising, and only A/B testing will support your campaigns.
You should also be creating fresh adverts on a regular basis. You will have a limited reach if you don’t make your adverts look new.
This should always take at least 15 minutes per day (depending on the number of adverts you run) or two hours per week.
You should also have a minimum spend of about £1 per day. This will guarantee that you attract a continuous stream of new Facebook fans for your page and brand.
Is The Cost And Time Worth It?
There is a great debate, as always, about the value of Facebook Adverts. Some regard it as essential to their business, while others claim it is just an expense they don’t need. However, research has shown that it is rather how you use Facebook that will determine the cost of the campaign, and therefore, whether it is worth your investment or not to use Facebook adverts.
Late in 2014, over three months, Facebook was responsible for $234 million worth of revenue for businesses. Studies have also shown that businesses using custom audiences, rather than categories or interest, will have 14% lower cost-per-click costs, and conversion costs can be reduced by 64%.
This can make a real difference when it comes to the profitability of Facebook advertising.
But Organic Is Still Important
One of the keys to being successful with Facebook Adverts is to make sure you are regularly visited by your audience. Algorithms on Facebook ensure that adverts from the last fifty pages the user visited are promoted above others. This means that an organic campaign is just as important to a paid campaign.
And if you want that organic campaign to be highly successful, you will need to time it right. Research has shown that three-quarters of organic engagement occur within the first five hours of a post being published.
While people are constantly told about the power of images on Facebook, that isn’t always the case. During a recent study of a client’s Facebook account, we saw that a short text only message could receive up to 100% more reach and 50% more interaction than a shared image or new link. It is all about your audience and what they want.
Facebook Adverts are important for your brand’s continued success online. However, that doesn’t mean you have to overspend on the platform. Ensuring your adverts are perfect for your audience is important and that can sometimes mean that you need to look at A/B testing of your campaigns to see what audiences prefer.
Facebook Advertising also relies on your organic campaigns. If they are effective, your paid campaigns will be too.
Have you tried Facebook Advertising? What were the results for you?
Let us know in the comments below.