5 Lessons Learned from Recent Facebook Ad Campaigns
1. Facebook Advertising is Ideal for High-Margin Sales!
Facebook advertising is currently the cheapest and most cost-effective method of online marketing (if you know how to use it). As a result, more and more businesses are starting to advertise on Facebook, their advertising budgets are constantly increasing, Facebook’s available advertising space is reducing, and the content shock phenomenon is reducing the effectiveness of our lead magnets. For these reasons, the cost of Facebook advertising is rapidly increasing. It’s becoming more, and more difficult to make profitable once-off campaigns for low value (low profit) products or services. So, when a client comes to me with a high value, high margin product I tend to jump at the opportunity. It’s almost like stealing candy from a baby! In this case, my client has a productized service with a retail price of €5,000 with a 50% profit margin. Yes, I know, that’s the kind of product we should all be selling.
In the short term, the remit was to get people in the doors as quickly as possibly. It was important to get the campaign out there, test some things, and then refine the funnel as we go. To do this, the advertising strategy was initially two-fold. First, create an article that would only be highly relevant to potential customers. Then retarget the visitors to this article with a lead generation campaign for a free consultation.
As you can see below, in part one of this strategy, I spent a mere €81.92 in 15 days to generate 615 Link Clicks. The article in question was highly defined in such a way that anybody who clicks on it, would be considered a potential customer. The article would be completely irrelevant to anybody who wasn’t interested in being a customer, therefore they have no reason to click on it.
For less than €100 we have identified and attracted the interest of over 600 people. Not bad when the profit margin is €2,500!
Not bad when the profit margin is €2,500!
The key to making the sale, however, is effectively retargeting these interested visitors with the sales pitch.
2. Higher Click Through Rate Doesn’t Necessarily Mean Cheaper Clicks
The theory would typically suggest that the more engaging your advert, the cheaper the clicks will become. Facebook will deem your advert to be relevant to your chosen audience and will reduce the costs associated with attracting them. However, there are other factors which often come into play. Your adverts are competing with every other advertiser targeting your audience, and also competing for the position against standard posts, and personal updates from friends and groups. At different times, there will be greater degrees of competition, but also, different audiences will be more competitive than others.
With the product mentioned in Lesson 1, it was expected that the target audience was Female 25–45years old. As you can see below, the CTR (all), Unique CTR, CTR (Link) are all higher for females, as expected. However, from the CPM & CPC, we can see that although they are more likely to click, the females will cost you more! So, somewhat paradoxically, although the women have a higher CTR, it would cost approximately €5 less to attract the same amount of visits from men, as occurred for women.
3. Retargeting Rules the Roost!
The biggest mistake most businesses make with Facebook advertising is not retargeting interested audiences or implementing poor remarketing strategies. Retargeting is the single most effective form of marketing if you know how to use it effectively. Your Facebook advertising strategy should be designed to find your ideal target audience, and capture their interest, then effectively remarket to them to convert them into leads and customers. You will save money, acquire leads and customers at a faster rate, but also not turn off people who are not ready to buy yet because your sales pitch will only be focused solely on the retargeted audience. The stats below show the lead generation campaign that was created to test the cold audience vs the retargeted audience to see if the article was attracting the right audience. As expected, the retargeted audience was much more effective. The cold audience acquired only five leads whereas the retargeted audience generated twelve leads, for a euro less!
Notice the differences in reach too.
4. Your Final Campaign Objective Should Determine Your Optimization Strategy
As seen in Lesson 2, it was cheaper to target men even though there was a lower CTR’s.
So should I just target men, because it’s cheaper?
Although the first campaign contains a highly targeted piece of content, you must remember that these visitors, are only just visitors. They have shown some interest, and they may need our product but they are not leads or customers, yet. The ultimate goal of this campaign is to generate leads & customers, not increase traffic. Thus, any conclusions on demographics should be based on the leads & customers generated. As seen below, the large majority of the leads generated for a free consultation for this product were female. Thus, from our traffic based advertising, if we were to assume to only retarget men for the free consultation we would have been greatly mistaken.
5. Don’t Waste Time Fighting Facebook Advertising Regulations
I’m sure many of you have come to realize that Facebook advertising regulations are a pain! Through my work in the fitness niche it quickly became clear to me that fighting these regulations is usually pointless. Every advert you create must conform to Facebook’s advertising regulations. It only takes the slightest, most innocuous reason to cause your advert to be rejected. For example, anything which mentions anything related to body image, feelings, emotions or before and after transformations could be rejected. And while you may think it is incredulous, you are generally wasting your time appealing the rejection. It’s better to edit the advert and get it approved as soon as possible. However, just as an aside, appealing the advert is a good way to get to talk to the ever elusive Facebook support. So. it might be handy to run an advert you know won’t be approved if you want to get in touch with them.
Fed up of losing money by making Facebook Advertising Mistakes without even knowing?
Here’s what you can do….