Out of all the ways we manage ads for clients the #1 requested online form of advertising is Facebook. Facebook Ads cost less than Google and in many ways are just as effective as you can target your ads based on age, gender, location, and interests. The main difference is that your ads will show an image and unfortunately people on Facebook are not there to shop, so your audience may or may not be interested in what you are showing. Most people if they see your ad and like it have the opportunity to click on it and it will take them to a landing page (website), or to a lead capture form (In Facebook). Honestly, we haven’t done a lot with creating forms within Facebook, but I hear it is popular and easy to get approved as long as you have a privacy statement on your website. This article isn’t so much about getting your ads approved as lowering your costs, so with that being said, here are a few ways that we have found to lower your costs on Facebook Ads.
“The best Facebook ads look and feel as relevant and timely in your News Feed as the posts you see from your friends. Mari Smith
Your Facebook ad costs, of course, will vary based on a number of factors, including your audience, industry, goals, and optimization settings.
One thing I recommend figuring out if you haven’t already is how much your cost per lead for your industry is. I know when I was in Real Estate years ago it would take around $25 to generate just one lead, in network marketing, it was around $5, and in Digital Marketing I find it to be around $20 per lead. Below is a photo that shows how much you should pay per lead on Facebook. I know the average cost per lead on Facebook runs around $18.
Industry Costs Per Action – Apparel ($11), Auto ($45), B2B ($23), Beauty ($25), Customer Services ($31), Education ($8), Employment and Job Training ($23), Finance & Insurance ($45), Fitness ($13), Home Improvement ($45), Healthcare ($45), Industrial Services ($38), Legal ($28), Real Estate ($25), Retail ($22), Technology ($55), Travel & Hospitality ($23).
How To Lower Your Costs On Your Facebook Ads
- Target to a more specific audience. Know your audience (age/gender/income/interests) and try and target your ads towards them.
- Use Bid Caps – If you know that your cost per action (lead) is around $20 and it takes you 20 clicks to get one lead cap your bids at a $1.
- Set up your Facebook Pixel – This will not only allow you to see costs per conversion but will also allow you to measure results very similar to Google Analytics. More than likely you will need to have a programmer install some code on your website to get this to work properly or if you use WordPress like us you can download a free plugin and put it on your website. The best plugin we have found for this is Pixelyoursite.
- Test Different Creative. If you have a video run a video with the same text as an image as so forth. Test 4 or 5 different combinations of ads and see which ones work the best. You’d be amazed how just one image can draw quadruple the clicks with identical text and so forth. As long as you are using Facebook Ads, you will always be testing different combinations to see which ones work the best. You may also use split testing on Facebook that allows you test creative, targets, etc to see which ads are performing the best. When you find an ad that isn’t performing well simply pause it or delete it.
- Target Ads Towards Existing Customers and Create Lookalike Audiences – This is great if you already have an email list you can upload your leads into facebook and they can target ads towards everyone on your email list or even perform a lookalike audience to new viewers who would be identical to everyone you already target your product/service.
- Refresh Your Creative – The biggest mistake advertisers make is that once an ad is working they don’t try and improve upon it. Once you find an ad that is pulling well, keep monitoring it and always be optimizing for better results. We usually check our client’s ads bi-weekly to see if we can do anything to improve them and get better results.
- Take Advantage of Video – Damon Gochneaur, founder and managing partner of digital marketing firm Aspiro Agency, said his #1 tip for reducing the cost of advertising on Facebook is to use video anywhere you can. “Video is on average 10% of the cost of carousel or single image ads,” he said. “We pay on average anywhere from $0.15 to $0.50 per click on video campaigns, with single image ads in the $2.00 and higher CPC, for the same audience.”
In conclusion, Facebook Ads like Google look very basic on the front end, but running campaigns takes good creative, good content, good understanding of your industry and audience and you must always try to get the best ROI (Return on Investment). If you find your ads are not getting the results you desire change them up as you don’t want to keep beating a dead horse. Test, test, and test some more moving you closer and closer towards your goal whether it be more leads, more sales, more followers etc.
If you feel like you would rather stay away from marketing and focus more on the things you are good at — always feel free to reach out to me or another online expert for help on making your business stand out in a noisy overpopulated online world.