Five things you need to know Facebook Advertising
Facebook is ubiquitous in our lives at this point. I mean, some of us have gone so far as to nickname it ‘Facey-B’. So let’s talk about ‘Facey-B’ Advertising. That’s why you’re here, right? While some might shy away from using Facebook advertisements, it can be one of the more effective ways for you to expand your brand reach and awareness, and to also find new customers and clients online. If you’re one of the ‘shy’ ones who is yet to get up on the Facebook Ads dancefloor, we’ve compiled a list of things that you need to know before you get up and bust a move.
1. Content is Key
We know you’ve heard it time and time again…and again, and again. We don’t mean to ‘Groundhog Day’ you with this sentiment either – but it’s true. Content *is* key.
There’s no point putting money towards an advertisement unless you create valuable content. It’s the difference between putting $150 towards a campaign with less thought-out content and creating awesome content with a $50 budget that gets more engagement.
Here’s a few tips to keep in mind when creating content:
- Make it personal
- Sure, it’s great to add an image to your advertisement but don’t just use another stock image – people see 100s of stock images on the internet everyday. It’s like seeing those stock photos when you buy a new photo frame. Create a unique graphic that will make your advertisment stand out against the other images on your target audience’s Newsfeed.
- People love video
- We all love image-based marketing. We’re living busy lives and we want to consume content as quickly as possible. Video is a great way to engage with customers because it’s entertaining and they can visualise exactly what you’re advertising to them (and you have control over what you want them to visualise too). Here’s a top tip: add subtitles so they know what the video is about when it auto-plays on their Newsfeed and sound is off.
- Keep copy short
- Keep it short. Keep it punchy. It’s that simple! People don’t want to read large amounts of sales text – they just want to know what it does; why they need it; and where to get it. Just give them what they want!
- Remember resolution
- Keep to the Facebook guidelines and used the recommended resolutions. There’s nothing worse than having an advertisement published with a pixelated image. I mean, we don’t live in an 8-bit world. We live in HD now. Generally, the recommendation is for single image Facebook advertisements to be 1200 x 628px.
2. Customer Lifetime Value & Creating Budgets
It’s easy enough to get a Facebook Ads account and put $50 towards your first ad, but are you getting the most bang for your buck?
Most of the time, the answer is no.
So how do you combat this? Make sure that the most important formula in your social media plan is your Customer Lifetime Value (CLV). CLV is all about the revenue that a customer brings to your brand, over the lifetime of their relationship with your brand.
How do you calculate CLV? Take the amount of money your typical customer spends per month and multiply it by the amount of time that your average customer will spend with your company. Calculating this allows you to determine how much your average customer brings to your company.
Know your CLV? You can now calculate the cost of your customer acquisition. The rule of thumb amongst companies is to use 10% of their CLV to then calculate the amount of money that can be spent per customer sale – the Allowable Cost Per Sale. For example, if your CLV was $5000, then you can calculate that your allowance per sale should be a maximum of $500.
For the maths averse reading this right now, this can seem like a lot of calculations to do. But trust us and get your calculator, because knowing these value amounts and costs allows you to create a well-informed and smart budget that gets you that bang for your buck that we’ve been talking about in Facebook advertising.
But trust us and get your calculator – because knowing these value amounts and costs allows you to create a well-informed and smart budget (and we all want those budgets, right?!). Armed with this budget, you can get those multiple ‘bangs’ for your buck that we’ve been talking about in your Facebook advertising. We also promise we’re done with using that phrase…for now.
3. Create Lookalike Audiences
Struggling to target an audience that you think will be interested in your business?
Well it’s time for the attack of the clones! Not really, it’s more benefiting from the clones. Find your target audience by creating lookalike audiences.
Facebook gives you the option to create lookalike audiences that target people who are likely to be interested in your business, based on the similarities they share with those who are already interested in your business. What is this sorcery that Facebook employs? Facebook uses a source audience such as a custom audience, your Facebook pixel or people who like a particular page. Unlike other Facebook audiences, you can directly choose the size of your audience as opposed to progressively narrowing it down.
Our only advice? Make sure you know what you want out of a lookalike audience. It’s easy to create a large audience, but this will create more distance between your lookalike audience and source audience. We recommend narrowing your lookalike audience to ensure that you keep it similar to your source audience. Why? Because it’s more important to reach the right people rather than the most people.
4. Organic Reach is Dead
Fish around online about organic reach and you can easily catch 100 articles online telling you how to increase your organic reach. Sure, it’s admirable to try. But we’re sorry to be the bad cop…Organic reach is dead. Time of death is still being disputed – but our investigations say it started circa 2014.
As of 2016, organic reach of Facebook pages dropped, on average, to 6.5% of entire page likes. How does this affect your company? Well if you have 2000 likes, it’s likely that only 30 people will see your post. You are then reliant on those 30 people to see and engage with your post.
Here’s where we play good cop. Don’t get us wrong – we don’t want you to be scared away from using Facebook as a professional platform. Facebook is still a great platform to share content and increase brand exposure. It’s just important that you do it strategically. If you use this list of five to arm you to make informed decisions about Facebook Advertising – even better. We’d enjoy the ego boost knowing it helped you out even a little bit. So, if you are relying on organic content, enlist those close to you (and to whom you can emotionally blackmail. We’re kidding.) to help out. Get your friends and family to like and share your content to increase it’s reach.
Keep in mind, however, that the best way for you to reach your target audiences is through sponsored advertising. You don’t need to have a large budget to do this. Just test small advertisements first by using split testing, and the other tips we’ve mentioned, to progressively learn more about your audiences and how to create the valuable content that will get you the returns you want (and more bang for your buck…Like we said, we only promised we’d stop using that phrase for a little bit).