Facebook Tools and Technology Series (Part 3 of 5): How To Make Facebook Ads Work for You and Generate Social Media ROI
Welcome back to our Facebook Tools and Technologies Series. In this series we are going to discuss Facebook Ads and how to generate social media ROI.
The entire series include:
Series 1 – How to Build a Facebook Business Page
Series 2 – Utilizing your Facebook Applications
Series 3 – FACEBOOK ADS FOR SOCIAL MEDIA ROI
Series 4 – Time-saving tips for Facebook marketing – stay tuned
Series 5 – Measuring what counts on Facebook – from Facebook Insights (free) to more advanced Facebook measuring tools – stay tuned
Why Facebook ads?
You can create extremely targeted ads to reach your audience – for example, if you own a local business you can advertise to people within a 10-mile radius of your zip code. You can also target by interest(s), gender, demographics, affinity to your page or your competitor’s page and much more.
They are super affordable. You can start with $5/day and reach your audience. This makes Facebook ads an excellent tool for small businesses.
You can advertise on mobile devices already with the latest Facebook announcement has to do with rolling out an audience network that will allow advertisers to create super relevant and engaging ads for brands that people will actually like. Watch the Facebook video below to see what’s coming in the next months.
You can pay based on different programs, such as cost per click, cost per thousand or cost per optimized thousand impressions. This allows you to do excellent A/B testing and see which program delivers the most results for your money. You can also compare your cost per click across Facebook ads and Google ads to see which one performs better. In a recent campaign we saw that Google cost per clicks was at $0.79 while Facebook delivered $0.24. However, be careful with how you measure your conversions. Jon Loomer wrote an excellent article on the subject.
Custom audiences and Look Alike Audiences
You can create custom audiences and look-alike audiences. A look-alike audience is an audience that Facebook creates based on certain criteria that you provide. For example, you can import your email database and Facebook will create a look-alike audience. With the latest Facebook changes, a business can now target a multitude of things:
- Your email database and a look – alike audience
- Your website visitors — you can target people who visit your website or a specific page on your website and now you can create a look-alike audience for visitors similar to the ones that come to your website
- Lookalikes for conversion pixels – you can post a conversion pixel on a page within your website, let’s say a sales page and create a custom look-alike audience based on these actions
- Lookalike audience for pages allows you to target a bigger audience with similar interests to your own fans
- Lookalike audience for mobile app users – if you have an app created, you can now expand your reach with a look alike audience for your mobile app users
Check out this video to see how to create custom audiences and look alike audiences and achieve 6 times ROI on your social media advertising dollars. You need to use Power Editor in order to create custom audiences and look alike audiences. You can get to your Power Editor from the self-serving Facebook ad platform by using Chrome as your web browser.
Social Media ROI
Facebook just released a case study with Sierra Trading Post where they were able to achieve 11 times Return on Ad spend from their advertising dollars; a 3.6 higher value for customers referred through Facebook, 2 times higher site referrals using Facebook ads and 2 times higher click through rates using custom audiences of their website.
We were able to achieve 2,616% social media ROI for a small fitness club prior to these custom audiences and look alike audiences were introduced. We can’t wait to show the results of the new campaigns we are working on.
You can view the entire Facebook Tools and Technologies presentation below. Stay tuned for number 4 of the 5 Facebook tools and technologies: How to save time with your Facebook marketing so you have more time to play with the kids/dog.