As the latest number of daily active users for Facebook approaches 2 billion, there’s never been a better time to advertise your business on the world’s most popular social media site. With highly-focused Ad targeting, excellent ROI, and the ability to remarket to those who’ve already visited your website, Facebook offers business owners an unrivaled marketing opportunity. But what do Facebook Ads cost?
How much money do Facebook Ads cost for successful marketing campaigns?
Many wrongly assume that you have to spend thousands on Ads to earn thousands in revenue when that couldn’t be further from the truth. So if you’re on a strict budget for your marketing expenditure, let’s take a look at how Facebook Ads stack up.
Why Facebook Ads Are Such an Excellent Option for Your Business
As mentioned, Facebook has an unrivaled reach. Almost all households in North America contain at least one person that has a Facebook account. With so many individuals using the platform on a daily, weekly, and monthly basis, it doesn’t make sense not to use Facebook to generate interest, leads, and ultimately clients for your business.
Next, Facebook has changed the game when it comes to data. As the Cambridge Analytica scandal unveiled, Facebook knows everything about us. The platform knows how much we earn, how we like to spend our money, the last website we visited, where we like to eat, what our hobbies are, and the list goes on. You name it, they probably know it.
But what does that mean for your business?
It means laser-focused targeting. This isn’t a billboard or a TV spot. There’s zero chance of you spending advertising dollars on individuals that don’t fit your specific target audience. Every single cent of Facebook Ad spend is dedicated to people that are likely already interested in what you have to offer.
This is precisely why Facebook Ads are so affordable compared to other advertising mediums. No other method can secure you a lifelong customer for the cost of just a few dollars. Even twenty bucks can get your company in front of thousands of eyeballs. Which alternative advertising method can offer that?
Better still, any Facebook Ad can be run on Instagram. If your offering is catered to a slightly younger audience, this unlocks a whole new social media platform for no extra cost.
Lastly, Facebook works exceptionally well for local businesses. Not only do you get special treatment on the platform, but you can limit all of your efforts to your specific marketing efforts on the site to users within your company’s particular geographical service area.
So what are some of the best low-cost strategies to maximize the bang for your buck?
Low-Cost Strategies to Keep Facebook Ads Costs Low
While Facebook Ads represent great value, there are ways to maximize every cent if you’re on a tight budget. The first way to do that is by narrowing your audience right down to your perfect customer. While you can do that within the “Create an Audience” section of the Ads Manager, there’s nothing as detailed as installing the Facebook Pixel onto your website.
1. Install the Facebook Pixel
This is simply a few lines of code to add to your website so that you can accurately track clicks from your Ad through to your site. If you have a company looking after your website for you, they’ll already be well-versed in installing a Pixel. If not, you can watch this handy Facebook Pixel tutorial here.
Not only does it collect data about actions taken on your website, but it tracks the juicy stuff such as:
Not bad for just a few lines of code, right?
With an audience created with your Facebook Pixel, you can reach over 1,000 individuals who fit your perfect target customer for as little as $5 to $10.
Remember, Facebooks Ads operate just the same as many other platforms, which is through an auction-based bidding system. By eliminating the fluff around the edges of your audience, you can secure Ad reaches that number in the thousands for very little expenditure by avoiding competition for your specific audience.
2. Place Caps on Your Ad Bids
Do you have in mind a figure that you’re willing to pay for a lead, client, or specific action?
If you do, that’s excellent news when it comes to advertising on Facebook. Why? Because you can place bid caps to make sure you’re never overpaying for a lead or conversion.
For instance, let’s say you don’t want to pay more than $5 for an email sign up into your sales funnel. By placing a cap on your Facebook conversion Ad at $5, you can ensure that you never bring in a lead at a price more than it’s worth to your business.
If you know that you covert one of every 10 email addresses into a customer that’s worth an average of $500 in revenue over their lifetime, then a $100 Ad spend (at $5 per email) will ensure that you pay for 20 leads guaranteed. Based on your average conversion rate, that $100 Ad spend should convert to $1,000 in revenue, providing a 10x ROI. Not too shabby!
3. Carry Out A/B Split Testing on Your Ads
Many businesses fail to realize that hitting “Publish” on their advert is only the beginning. No one creates a perfectly-converting Facebook Ad right off the bat, so you need to continually optimize to reduce your overall cost-per-acquisition.
No matter what your Facebook advertising budget is, start small with $5-$10 daily budget caps and observe how they perform. Remember, even with such a small investment, you’ll still have thousands of impressions and actions upon which you can base decisions.
Then begin your testing.
You can run the same Ad with different taglines, Ad text, CTA buttons, images, videos, or audiences to name but a few variations. By running them simultaneously with low budgets, you can begin to see what’s working and what isn’t before potentially wasting hundreds of dollars on poorly-optimized Facebook Ads.
Once you’ve found a winner, you can pause all other adverts and commit to your highest-performing version. By carrying out this type of work, you can acquire the same leads for a fraction of the price.
How to Get Started with Facebook Ads
Setting up a Facebook Ad can seem a little daunting to the uninitiated, but it’s actually fairly intuitive.
The first option is to head to the menu section of your Facebook business page before selecting “Ads Manager.” If this is the first time you’ve advertised with Facebook, you will be prompted at this point to set up an account.
If you can’t find the Ads Manager from your Facebook business page, you can also sign up for Facebook Ads here.
Get Help from the Experts
If the world of Facebook Ads seems alien to you, we are here to help you market your business and grow your audience.
Our Facebook Ads service is all about getting your business in front of the right people. If your goal is to secure more leads, product sales, or gain exposure, Facebook Ads are a good fit for your company.
If you would like to speak to a member of the Bocain Designs team about getting expert help with advertising your business on Facebook, then head over to our contact form, or call us to discuss your options.