Advertising on Facebook is available to businesses in many formats.…
Advertising on Facebook is available to businesses in many formats. Ads can be as simple or as sophisticated as they want. No matter the scope, the reach is wide: Businesses have the ability to market to two billion people on Facebook every month.
The process is easy.Facebook allows users to target audiences through self-serve tools and it gives them analytics reports that track the performance of each ad. The reach and visibility can help level the playing field for an independent business that wants to compete with companies with much larger budgets.
Through Facebook’s Business Manager platform, businesses have a one-stop shop for all their marketing and advertising needs. Additional resources like access to Instagram and product catalogs are part of the mix.
To fully conquer Facebook advertising requires perseverance and a deep understanding of how the platform works in all its dimensions. Lucky for you we have created the ultimate guide to get you started.
The first step is an easy one: Set up a Facebook Advertising account. This is a fairly straightforward process and involves the following four steps:
Facebook Ads Manager is the primary tool for creating and analyzing your Facebook ad campaigns. Creating the ad itself just involves selecting “Create Ads” from the drop-down menu in the upper right of your business page.
When you open the main menu, you’ll see five sections: Plan, Create and Manage, Measure and Report, Assets, and Setting. Knowing how each tool works is essential to shaping your campaign.
The Facebook pixel is a tool that helps you run highly targeted campaigns, so it’s important to install it before running Facebook ads. Each ad account gets one default pixel to use. The code is made up of two main parts: the pixel base code and event code. The pixel base code tracks all of the traffic to your site. Event codes are additional pieces of code you can add under the default pixel code to specific pages of your website that allow you to track certain actions on those pages.
As you go through this process it’s important to provide sharing access to Google Analytics, Facebook, ClickFunnels, and other lead page assets because each platform has its own account setup structures and sometimes involves multiple setups. The reason why this is important is twofold:
Understanding the Facebook Ad algorithm is important because it identifies ads that provide a good user experience.
In doing so, the right settings can help optimize your budget. There is a practical reason why the algorithm exists: If advertisers monopolize the news feed, Instagram, the right-hand column, or whatever you’re using to advertise on Facebook, people won’t return to Facebook. That means your ads need to provide value because Facebook wants to create a positive user experience with meaningful interactions.
Ad transparency is important for figuring out the algorithm. The ability for any user to see exactly what ads a Facebook page or Twitter account is running is particularly useful for marketers and businesses. There are three key ways that marketers can leverage this information to their advantage:
So how do you build an effective Facebook advertising campaign? First you need to have a plan of action. Otherwise, you’ll be flying blind with no clear idea of where you want to go. To see consistent results, identify where in your sales funnel you can leverage Facebook ads. Answer these four questions to help define your strategy:
Based on your answers, there are three Facebook advertising strategies you can use to take the next step forward:
Facebook Marketplace is the place where you can reach local audiences with your product and services.
Think of it as the Facebook equivalent of eBay and Craigslist — Here’s where everyday people can post any number of items or services for sale. Currently, Facebook says it has over 800 million users in the Marketplace. The plus of Facebook Marketplace is that it’s where people are actively looking for a specific good, which means you have immediate access to an audience that is looking for you.
You can also create a sequence of Facebook ads based on your email marketing funnel. Most sales funnels include an email follow-up sequence, which is a series of pre-written emails that are automatically delivered on certain days in the funnel. Each sales funnel is different and can include a sequence of a few emails to many emails. To create a dynamic ad sequence, you replace the emails with Facebook ads for each topic. Part of this process is creating the type of ad. Among your choices:
Once set up, your ad funnel can target people at every stage of the customer journey. It takes an actionable plan that attracts people who have engaged with your social media posts within the last three months.
The first step is serving a website conversion ad to people who are similar to those who have already purchased from your store based on their age, demographics, interests, values, and more. That will require setting up a Facebook pixel to track those who made a purchase from your online store or visited your website.
From there, build brand and product awareness via ads served to people who engaged with your social media posts within the last three months. You then need to create carousel ads to target people who visited your website within the past 30 days.
You can also use case studies and testimonials to create a Facebook funnel campaign.
The reason why both are effective is because they not only build awareness, they build trust.
After you build audiences that demonstrate an interest in your case studies and testimonials, you can then offer a trial, demo, or discount that will confirm your product or service works for your prospects and thus overcome their remaining doubts.
If you have a sizable Facebook following with whom you regularly engage and share valuable content, you can build a Facebook funnel based on case studies and testimonials with three campaigns, each of which targets a warm audience. With this funnel in place, you can maximize the results you achieve with your Facebook ad spend.
The real impact of Facebook fans on your business is not just about the size of your audience; it’s how engaged they are with your content. Previously, the only way you could target your audience with ads was either as a whole audience or by creating segments with basic demographic and interest targeting.
Since there were no dynamic targeting options, your target audience would include a large number of people who like your page but don’t actually interact with any of your posts or ads.
With the introduction of page engagement custom audiences, you can now segment and build audiences based on the interactions people have with your Facebook page and ads. This allows you to target only the most engaged people who will be hyper-responsive to your ad campaigns.
Facebook events are also a good tool to target new audiences. Do you want to target Facebook ad campaigns to people who actually attended your event? If you collect information from people while they’re physically at your event, you can use that data to create a custom audience based on offline activity. To get a little more specific about the people you want to target based on their engagement with your Facebook event, you can set up a custom audience for Facebook event engagement.
What if you want to retarget website visitors with ads for products they viewed but didn’t purchase? The answer: dynamic product ads.
The benefit of dynamic product ads is that you minimize the number of conversions lost at the last stage of the sales process. The ads remind customers of your products and increase the likelihood of a website visitor returning to your website to buy something. You can also spotlight offers, show product reviews, and tell users about delivery time or other key points.
Facebook also allows businesses to retarget prospects based on their activity with your website, product, or landing page. The Custom Audiences tool allows you to create a list of these contacts and target them with highly relevant ad campaigns.
Here are seven types of audiences you can target:
When setting up these campaigns you need to have a budget. But for how much? Estimating a Facebook ad budget is important because it should be based on the amount of revenue you want to generate. To do this requires the next few steps.
Facebook’s Budget Optimization tool uses an algorithm to automatically optimize your budget distribution across ad sets so you can find way to save money. As with most aspects of Facebook advertising, the most effective way to identify what’s working best for your business is through testing.
The same is true for identifying your ideal audiences to save money. By setting up multiple ad sets, each targeting a different audience, you can gather data that will help you determine which audience is performing best within your current campaign.
When you’re running ad sets with different audience sizes, it’s recommended to set budgets proportionally based on individual audience sizes. This helps ensure that your budget has equal potential with each audience.
Need to lower costs further?
Building engagement on your posts sends positive signals to the Facebook algorithm, which can boost your reach, increase the size of your warm audience, and ultimately lower your advertising costs. Here are three tips for building engagement that delivers better ad results.
One way to manage costs is to choose whether you get charged by the cost per click (CPC) or cost per mille (CPM).
When you opt to be charged by link click, you’ll be charged by CPC. This means you’ll only get charged when someone clicks a link in your ad. When you opt to be charged by impression, you’ll be charged by CPM. This means you’ll get charged every time an impression of your ad is shown, with the price calculated per 1,000 impressions.
Which is right for you?
Facebook’s Automated Rules feature is another way to manage your Facebook ad spend more effectively.
Facebook’s automated rules feature is a hidden gem for improving Facebook ad performance without relying on manual optimization. It can save busy Facebook advertisers time, energy, and resources.
By combining different KPI metrics when defining rule conditions, you can design your custom automation workflow on Facebook. It may require some trial and error to find the right automated rules, but it’s worth the investment.
With automated rules, you set predefined conditions for key performance indicators (KPIs) such as likes, reach, and leads, and ad campaign elements (campaigns, ad sets, ads, etc.) in your Facebook ad accounts. Facebook will check the condition you set at specific time intervals, and when a campaign meets that criterion, it will take your predefined action, essentially saving you time and money.
The Facebook Dynamic Creative ad tool is an effective way to test Facebook ad variations automatically.
The tool delivers the best combinations of your ad creative assets. It runs different combinations of your ad components, such as images, videos, titles, descriptions, and calls to actions, across your target audience to determine which combinations produce the best results.
Before the introduction of this feature, you had to create fully formed ads individually and test them manually to find the most effective ad creative and the best ad-to-audience fit. Dynamic Creative automatically randomizes ad variations for you, making it easy to show the right ads to people. Facebook lets you use up to 30 creative assets, including:
Sometimes, improving your Facebook ad performance means making sure your ads don’t overlap audiences.
A byproduct of this phenomenon is ad fatigue — What happens when your audience has seen your ad too many times, which can reduce its effectiveness. Some reactions are as harmless as ad blindness, where your ad simply becomes a constant in their ever-changing news feed. Other times, users get annoyed to the point that they’re blocking or leaving negative comments on your ads. The three ways ad fatigue can happen are:
Facebook’s Messenger app allows for one-to-one messaging between users. It’s also another potential platform for your company’s advertising. Facebook ads can be displayed inside the Messenger app on the Home tab, which increases the likelihood that people will interact with your brand or business.
You can also export user data from your Messenger app subscribers to create custom and lookalike audiences that you can later use to serve targeted Facebook ads. These users are typically highly engaged and super-familiar with your business and content, making them an ideal audience for marketing your products. When you target warmer audiences, you’ll find you convert at a higher rate and your ads cost less.
You can also create a lookalike audience based on your custom audience. While the custom audience is a near-replica of your subscribers, the lookalike audience is made up of people who are very similar to your subscribers. Targeting this lookalike audience can help you grow your subscriber base with like-minded users.
Like Facebook Messenger, Facebook video is another platform within Facebook to host advertising for your company. Facebook Live allows users to broadcast streaming video as it happens in real time to other users within their network. A good strategy looks like this:
Of course your video makes no impact if viewers don’t watch it all the way through. Among the ways to make sure viewing reaches completion every time is to optimize your video’s text and thumbnail attributes and determine the right day and time when you release the video to the public.
Facebook In-Stream Video Ads might just represent the most impactful form of video advertising. This kind of ad placement lets you show mid-roll video ads to viewers who are watching video content from select creators and publishers such as ESPN, VICE, CNN, The New York Times, and others. The ads can be 5-15 seconds in length and not skippable by viewers.
Your ads are delivered to a targeted audience that has been viewing a video for at least 60 seconds, meaning they’re engaged and more likely to pay attention to your message. If you combine this feature with well researched and targeted audiences, it could be an effective ad type for you.
In addition to the Facebook news feed, you can select the Audience Network placement to reach a targeted audience outside of Facebook.
Analytics are key to understanding which ads work and which ones don’t. Facebook Analytics is a robust tool that lets marketers explore user interaction with advanced goal paths and sales funnels for Facebook ads.
Facebook Analytics is a free tool, but it’s designed to work with Facebook Ads which do have a cost attached to them.
In the past, Facebook allowed you to see only the last touch point in your funnels. For example, if someone interacted with seven of your posts but purchased on the eighth interaction, only the final interaction would be given credit for the conversion. Now you can see the full interaction path to the conversion, rather than just the last touch point.
Google Analytics works with Facebook to measure conversions from your Facebook ads. In other words, tracking where people are coming from before they land on your website. You can also use Google Analytics to track the actions people take while they are on your website. Those actions can include:
The goal is to apply these insights into your advertising via Facebook and to track your return on investment for the ads themselves.
Google Data Studio is a good way to report on and visualize your social media campaign. You can use this tool to create easy-to-update reports on your website, Facebook, or other social media marketing campaigns. Google Data Studio is free. You can share reports with clients and team members, and import data from multiple sources to gain a holistic, 360-degree view of your digital activities.
To get started with Facebook Analytics itself, all you need to do is select your Facebook pixel, which will start providing you data. Then you need to create an event source group, or ESG, which connects your Facebook business page and Facebook pixel, so you can draw from more data sources like a Messenger bot. The dashboard shows real-time aggregate data of all your sources and you can see how they work together.
During this process it’s important to understand how Facebook Attribution works. When people interact with your Facebook ads, their actions — watching a video, visiting your website, etc. — are recorded. Each time your ad leads to a conversion, Facebook will credit, or attribute, the ad in Ads Manager so you can see how well your campaign is doing and determine if you are reaching your targets.
If you have a campaign that is working well, it’s time to scale up to net more customers. The way to do that is to set up your Ads Manager dashboard to ensure you’re viewing the most up-to-date data. The most ideal time window is over the last seven days. From there you can see which ad sets have high customer acquisition costs. Pause any ad sets with a cost per result that’s at least double your expected costs.
The best way to monitor performance of your Facebook ads is to generate reports through Facebook Ads Manager. The reports will reveal which ads are working best in reaching your targets and which ones are falling behind. By analyzing your campaign performance on a consistent basis, you’ll be able to quickly spot fluctuations in campaign metrics that signal a need for testing refreshes or reveal winning Facebook ads you should scale.
Analyzing four core metrics — cost, relevance, frequency, and cost per mille, or CPR — helps you identify and assess the performance of your campaigns and the ads within them.
This cost metric isn’t your overall spend or amount spent on each of your campaigns; it’s your cost per result based on your campaign objective and ad set optimization. If you’ve set a daily budget and aren’t scaling your campaigns, and you see your cost per result decreasing, your campaign results will be increasing.
The next metric to look at is relevance. A relevance score is a
rating from 1–10 that Facebook gives to each of your ads. This score
reflects the ad-to-audience fit and how well people are responding to
your ad. This metric can be viewed only at the ad level of your
If your relevance score increases over time, you’ll typically see your cost per result decrease and your campaign performance rise. On the flipside, when your relevance score is decreasing, you’ll find your cost per result increasing, indicating your campaign performance is decreasing.
The third metric to look at is frequency. Frequency is a delivery
metric that tells you how many times on average someone has seen your
ad. Your frequency will always start at 1 and increase over time as you
spend more of your campaign budget and reach more of your target
As your frequency increases to 2, 3, 4, 5, and so on, you’ll notice that it impacts your cost per result and relevance score. The higher your frequency, the more people are seeing the same Facebook ads.
Finally, look at CPM, which is an acronym for cost per mille. This is your cost per 1,000 impressions. As your frequency increases and you reach more of your target audience, your CPM will start to increase. This means that it’s now costing you more for 1,000 impressions than it previously did. This will have an effect on cost, relevance, and frequency metrics.