With Facebook recently updating its algorithm to make it even more difficult for businesses to reach their audience organically, more and more companies are turning to Facebook Ads.
The problem with this is not many companies know how to use Facebook Advertising to it’s full potential, causing them to waste their marketing budget and not see a great return.
As well as your budget, there are many factors to running successful social media ads, which I will cover through a series of blog posts over the coming months, but first, I want to talk about how you can keep your costs down when running Facebook Ads.
The first thing you need to look at is your audiences.
Are your audience’s warm audiences or cold audiences?
Are your ads targeting your top of funnel or bottom of funnel?
Are you re-targeting customers who already know about your brand?
There are a variety of audience options within Facebook Ads, but many businesses who are in-experienced with ads tend to rely on an “Interest Based Audience”. An IB audience is where you can target specific demographics, specific areas, and interests. An IB audience is a bigger audience, allowing you to reach more people, but it also is the most expensive audience. Not only that, but it’s also a cold audience, who know nothing about your business and 90% of the time, I see companies running a bottom of funnel ad, to their cold audience.
To reduce costs, I would recommend two things;
- Run a campaign targeting a lookalike audience (LAL), this is still a cold audience, but Facebook creates this audience based on your website visitors. If you have the data, you can also run a lookalike audience on your website purchasers, rather than just visitors – that way you are asking Facebook to find you people are similar to your present customers. With a cold audience, I would recommend running a top of funnel ad, something to reel them in and make them want to know more about your brand. I would not recommend creating a top of funnel ad with a hard sell.
- Run a re-targeting campaign to a warm audience. This can be your website visitors (ensure you exclude your purchasers here), your social media audience, your existing database or other CSV data. This will be a smaller audience, thus reducing your cost, however, this is a warmer audience who already know about your brand, therefore should have a higher conversion rate.
Be mindful not to create too many audiences with a limited budget, I always recommend to my clients to have a budget of at least £10 per audience, each audience running at least 2 ad creatives within each.
If you would like more support with your Facebook ads, I offer 121 training where we can discuss your audiences and choosing the right one for your business. Please feel free to drop me a message here and we can arrange a chat.