Facebook is a compelling platform for advertisers for many reasons including affordable costs & powerful targeting options. Of course, your Facebooks ads will vary based on number of factors such as your goals, audience, industry and optimisation settings.
We want to share with you the 7 secret tips that we use to lower the cost of Facebook Ads and make our budget work for us. Let’s get started!
1.Choose the Right Objective
When creating Facebook ads, the very first step that advertisers need to take is to choose an objective. The objective you choose defines what counts as a conversion for your ad and how much you pay for each ad. Choosing the wrong objective might kill your campaign.
For example : If you choose the website conversions objective, you only pay when a user converts on the website and not for each ad click. However, this ad objective costs higher than a pay per click objective.
By focusing on one specific objective within each individual ad, you’ll not only be able to make a clear call to action, but also get the ad to the right audience who will convert to leads.
2.Target Specific Audience
Choosing your audience is very crucial, and segmenting off different niches within your target audience will ultimately increase your success and lower your cost. You can craft ads and offers that you know the audience will be receptive to when you know exactly who you’re targeting. You’ll see your ad spend and ad costs go down rapidly when you focus on one particular segment in your audience at a time and hitting them with highly targeted, relevant ads.
A great question to ask while choosing your audience is :
Would you want to run a campaign designed to help you connect with new users and want to include the people already following you within that audience?
You may have to exclude users who are already connected on your Facebook page, since they are aware of your brand and offering. With this one tweak, you’re already in front of a much larger target audience. You can even use a look-alike audience created off your current high value customers to increase the likelihood of profitability.
3. Split Testing
Split testing helps you determine what’s working on your ad and what is not. This is very important while setting up or testing an ad. It will help you determine which ads increase your ROI as well as conversion rates.
Here’s how split testing works. You take one ad and create an exact copy of it. You change “only one thing” about that ad. Run both ads for the same amount of time with an equal audience and an equal budget. Then you measure which ad performs better. From there, you choose the better performing ad for larger promotion.
It doesn’t matter if you’ve come up with the most genius offer, you still should split test it. You should A/B test everything if you want to keep your CPC low. Starting with your image and your text is a good way to go. Both on the headline and description, create multiple versions of the same ad campaign that use different images, videos, and copy.
Split or A/B testing keep your ads fresh and interesting to the users who see them. It keeps frequency down, engagement up, and your costs low. Not only will this help you see what your audience actually prefers, it also allows you to run the campaigns with higher CTRs and pausing the ones that are boring.
4. Always Check on Frequency
You can set limits to your frequency on Facebook ads. The higher your frequency gets, the less interaction, CTRs, and conversions you’ll see on your ads. This will start to increase the cost of your ads, and you won’t be getting any results. So you should pay attention to your frequency and adjust your budget and targeting accordingly.
Most first-time marketers don’t know or don’t pay attention to ad frequency. There are three key metrics that measure how your ads are viewed by people on Facebook:
- Impressions are the total number of times your ad was seen. If one person views your ad three times, that’s three impressions.
- Reach is the total number of individual people who saw your ad. If one person sees your ad three times, that’s one reach.
- Frequency is the number of times, on average, that a person sees your ad. If your audience is one person, and he sees your ad five times, you have a frequency of five.
According to Hootsuite, the ideal frequency should be under 3. If it starts getting higher, it’s time to stop the campaign and either adjust it, or terminate it. By making sure users are only seeing the same ad a few times, you’ll keep engagement and interactions with your ads higher in number.
5. Understand your Relevance Score
It’s important to watch your relevance score carefully and understand it because it will directly affect CPC. Facebook ads provide a relevance score on every campaign you run. As the name suggests, this score tells how relevant your ad is to your target audience.
If you have high scores in Facebook ads, it will actually lower your CPC. Facebook prioritises ads with high relevance scores. You should be watching all of your campaigns’ relevance score, and either adjust or stop campaigns that have scores on the lower end.
6.Keep Your Ads Fresh & New
Refreshing ads in Facebook will take you 15-30 minutes, but creating a new ad with a brand new offer will obviously take hours, if not days. As time passes, your ads are likely to get older and this in turn can affect your ad spends and budget.
Once a campaign ends, create a new one. You want to keep your ads new and fresh. You can always recycle parts of an existing ad. Target the same audience, while switching up the way you phrase the offer and then add new images to the same offer.
7. Leverage Retargeting
Retargeting/remarketing is the practice of showing your ads to users who are familiar with you and your product. Categorised as “warm” audience, they are more likely to interact with or click on your ad, increasing CTRs and lowering CPC.
According to a study by Hubspot, approximately 96% of visitors leave your site without converting or buying anything from you. This means, you’ll have little to no chance to convert them at all. Yes, you can still retain the audience by using pop-ups, but you can’t stop all of them if they want to leave the site/page immediately. That’s where Retargeting comes in. Retargeting will reach those ‘lost’ visitors with your ads. In fact, they can boost response rates up to 400% from your ads. They work so well because these ads are targeted to only those who already know you or have some kind of relationship with your brand.
With Facebook ads, you can create custom audiences off those who have interacted with your Page, your site, and your mobile app. Using Retargeting, you can send follow-up ads to users who have previously seen the majority of your ads that was shown to a ‘cold’ audience, increasing the likelihood that they’ll click since they’re somewhat familiar with your brand. Also, Retargeting can be used for custom audiences from your email list. This can help you create ads and offers that they’ll be most interested in. You’ll know your relationship with them up front, whether you’re showing ads to users based on their past purchases or past engagement on your site.
There are plenty of factors that can affect how much you’ll be paying for Facebook Ads. The above 7 tips will help you with identifying a reference point to get a realistic, number-based view on how much Facebook Ads should cost. Keep in mind that as long as you aren’t sacrificing the quality and success of your ads, lowered costs are good. You’re better off running campaigns without these limitations, if you already have lower costs but ineffective ads.
Not sure where to start with Facebook Ads for your business?
Book an obligation free consultation with Digital Deluxe. We’ll give you some actionable advice on optimising your website promotion and maximising your chances of success.