The digital space is very saturated with all the existing advertising options, making them decide how and what to promote seems an endless road. Especially on Facebook, where its changing algorithm and advertising options can cause many people to spend only money hoping to find something that works, which usually results in frustration and little return on investment. However, trends show the effectiveness of online advertising .
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Even so, it is possible to succeed on Facebook. There is a way to make Facebook advertising work for you and your business.
Learning how to measure your return
The number one problem that is observed in most businesses is that they are very focused on the foreground numbers; paying the lowest cost and waiting for your leads to turn into profits.
This works like trial and error, which is not always a bad tactic in business, but it’s definitely a bad approach to advertising on Facebook. You can (and should) do some math to determine the lead cost that makes the most sense for your business.
To calculate that, you need to keep your focus on the whole picture. It is extremely important before you begin to be clear about your objectives . What action do you want the client to do?
Select the correct starting point
Let’s say that the ultimate goal is for the customer to buy a kit of 3 products in your online store. Your instinct could be to mount an ad directly to that product, but that would be a mistake.
You should start with a single offer. Giving customers a massive discount on your product only if they subscribe to your mailing list from your Facebook ad.
Why is this an important first step? Because they are now in your sales funnel, allowing you to increase subscribers. People rarely buy a product or service the first time they contact a brand, so this allows you to easily enter the radar and continually grow the knowledge and trust factor that will increase the likelihood that they will buy from you.
Test your audiences
Facebook advertising has to be targeted to a specific audience, and choosing the right audience can be confusing. Starting with an offer, you can try different audiences to determine which one has the most conversions.
In Facebook, depending on your industry, the cost per lead can be about $ 2 or $ 3 if you’re promoting your ad to a cold audience or someone who has never heard of your business and has never visited your site.
Your offer should be considered a success if you manage to convert between 6% to 10% of those people. If you are not reaching that number, you are probably promoting yourself to the wrong audience or your offer is not good enough, change one thing at a time until you find the reason for the problem.
Let’s see other examples: your offer could be a product with a good introductory discount or something like an ebook if you offer a service.
If your offer costs $ 47, and you get 100 people to subscribe to your list while you spend an average of $ 250 to get it ($ 2.50 per lead) and you are only getting 6% of people to buy your offer, you will have earned $ 32. That’s after subtracting what you’ve spent on ads and that’s what we can call a successful campaign.
The goal should not be to generate profits from your offer, the profit will come from the products and services that you sell through the funnel, but it will serve to provide you with enough money to cover your expenses of advertising campaigns on Facebook without having to empty your account from the bank.
Be strategic with your ads
You do not necessarily need to have your product or service completely ready before you start advertising, increase your leads and grow your mailing list, but you need to know how much you want to spend, offer and get profit. This also works for established businesses that seek to offer their products to new customers. It simply determines what you can offer new users, as well as the ad, and starts from there.
From this point, you can start to balance your statistics and adjust your promotion to target those audiences that have the highest conversion. You may also find that your offer is producing enough profits so you can increase your budget, grow your list and your leads.
The old saying “know your numbers” applies equally when it comes to advertising on Facebook and also to any aspect of your business. But, often, businesses spend money on advertising without a strategic focus. You should not spend money in another area of your business without understanding how you will make profits, so you should not fall into that trap with Facebook advertising.