Updated: Mar 2, 2021
Whether the goal is to increase brand awareness or improve sales, we run Ads with the hopes of a significant ROI. There are billions of monthly users on the Facebook platform, and this makes it a great place/platform to showcase your products and services through Facebook ads. A great platform does not automatically produce great returns on investment, but with continuous testing and learning, advertising on Facebook can be one of the best decisions you’ll ever make for your business.
However, to ensure you achieve the desired ROI with Facebook advertising, it’s important to do your research on what strategies work best for your business with regards to your target audience.
So, what are some of the ways in which you can figure out what works for your business with regards to boosting ROI with Facebook Advertising?
TARGET THE RIGHT AUDIENCE FOR YOUR BUSINESS
In the pool of billions of Facebook users, there exists a particular set of people who are likely to be interested in your products and/or services for various reasons, but how do you figure out who they are?
“Facebook Audience Insights gives you aggregated information about two groups of people – people connected to your Page and people on Facebook – so you can create content that resonates and finds more people like the ones in your current audience. “ - Facebook
Using the various options in Ads manager, an ad management tool to make, edit and analyze paid promotional Facebook campaigns, you can target the right audience based on Location, Demographics or Interests.
Demographics: Using demographic stats, you can target groups of people by age, gender, or even where a person works. This method of targeting is extremely valuable for reaching people that may find your ads appealing and therefore engage.
Interests: Interest based targeting on Facebook will prioritize getting your ads to the right quality of people and help you find people who are more interested in your business. For example, if you run an ecommerce store that sells sports gear, it would be very useful to target people that have indicated some love for various sports as part of their interests. Same way it might be better to remove focus from people who have indicated they absolutely hate sporting activities.
Location: Local businesses can target by location in situations where they want to offer prospects a chance to see and interact with their products at a physical store.
Remember that with The Facebook pixel, you can create custom audiences and lookalike audiences to reach the right people.
PAY ATTENTION TO YOUR RELEVANCE SCORE
Facebook attaches a relevance score between 1 and 10, (with 10 being the highest) to the Ads you run. The score is updated as people interact with the ad and provide feedback. It is calculated based on the feedback (positive and negative) received from its target audience.
The more times an ad is hidden or reported, the lower its relevance score will be and the more views or conversions as a result of engaging with the ad occurs, the higher the relevance score.
Why does it matter?
It can help optimise campaigns that are already in progress such that if you notice a drop, perhaps the audience or creative needs to be refreshed.
The higher an ad’s relevance score, the cheaper it is to deliver an ad.
Although we don’t know the exact metrics Facebook uses to calculate your relevance score, we do know that things like shares, comments, and the number of clicks can improve it.
TEST. LEARN. REFINE
You may have noticed that certain ad formats produce different results depending on the ad objective when running ads. Using A/B testing allows you to compare the different variables like your ad creative or placement to figure out what works best and to help improve future campaigns.
Facebook recommends A/B testing when you’re trying to measure changes to your advertising or quickly compare two strategies. You should use A/B testing to learn new strategies rather than testing informally, such as by turning on and off ad sets or campaigns manually, since this can lead to inefficient delivery and unreliable results. A/B testing helps ensure your audiences will be evenly split and comparable, while informal testing can lead to overlapping audiences. After choosing the variable you want to test, your budget is divided equally and exposure is randomly split between each version of your creative, audience, or placement. It can then measure the performance of each strategy on a Cost Per Result basis or Cost per Conversion Lift basis with a holdout.
Images for example are a very important part of ads, a good image can be the difference between why you had good engagement or not. So, before you consider any ad campaign to be successful, it is important to test and compare how the different variables work to determine the top performer, in this case images and how much engagement they get.
Once the best performing image is determined, you can start testing variations of your headline and ad copy to learn which combinations are the most effective. Allow some time for your ads to have a minimum of 100 clicks to your website so you have enough significant data to draw insights from. This approach helps you remove lower performing ads from your campaign and pushes forward only the best ones, which helps to avoid spending money on ads that aren’t performing well.
Over time, through the process of testing and eliminating poor-performing ads, you’ll create a campaign that’s vastly more effective than your competitors, letting you generate more results, more leads and more sales at a lower average cost.
Facebook Ads require specific targeting, personalisation if you will, and continuous testing to produce the best ROI.