Facebook has been here since 2004 and is continually growing. Starting out as a social media platform, it’s now recognised as one of the major advertising channels today. Facebook not only allows you to connect with friends and family, but also allows businesses to engage with current customers and even potential ones.


With Facebook having 2.6 billion active users per month, it’s now become a major platform for advertising. It doesn’t matter what industry you are in, Facebook is for everyone. Whether you are a small or medium-sized business, Facebook ads will help you with expanding your reach.


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In this guide, we’ll provide a whole rundown of Facebook ads, including why it’s being used, how it’s being used, and how to set up your own advertisement to bring in more value to your business. This will allow you to have a deeper understanding of Facebook ads and consider implementing it as part of your strategy to achieve your business goals.


Guide Sections


Facebook ads are those posts you see on your news feed that aren’t by your friends or connections. You can find it on your Facebook timeline or on the right column, depending on your device. 

These are usually made to look like normal posts but mention that it’s an ad or a sponsored post. These can be based on social news or your social activity. Check out Facebook for more information about Facebook ads.



Why are businesses implementing Facebook ads as part of their strategy? 


Businesses today are often looking at Facebook as a platform to reach more people. According to Datareportal’s report, there are 3.96 billion people on social media today, which is more than half of the world’s population. According to Facebook reports, 1.95 billion people can be reached through their advertising. 


Given the rise of Facebook and with the current environment, people are on their phones, browsing, researching, or shopping more than ever. Facebook ad impressions increased by 37% compared to 2019 and now 58% of marketers are planning to use Facebook ads as part of their strategy in the next 12 months. As numbers of users increase, Facebook will continue to stay at its prime.


Using Facebook ads for business allows users to see the actual offering through the images and videos on an ad. Because of technology, we now have the luxury to see the actual product or service of what’s being advertised. Brands today are able to showcase products and even communicate their brand story or message through Facebook ads. It’s been proven to be an effective strategy to grow your business.  This not only supports your top-level strategy but also helps your business strategy as a whole. Whether you are creating awareness for your business, generating leads, or converting leads into sales, Facebook ads can help you with your objectives. 


Facebook has made it easy for anyone to set up an advertisement. This is one of the main benefits of promoting on the platform. Nowadays anyone who has a simple understanding of how Facebook works, and has a Facebook page, setting up an ad to promote will be no problem. 


With a seamless process of creating ads, Facebook has made it possible for businesses to reach more people than ever compared to doing organic posts due to their targeting. Facebook targeting allows you to target people with specific demographics, activity, interests, and locations, making it easier for businesses to reach their target audience. Today, there are over 3 million businesses advertising on Facebook and continues to grow over time. This isn’t only simple but also fast and cost-effective. 


The targeting, ease of set up, and the reach are the major features why businesses use Facebook ads to promote. Whatever business size you have, Facebook ads can help with scaling your business.


Single Image Ad + -

The Image ad is the usual Facebook ad you come across. It consists of a headline, text, link and call to action. Using a single image ad is ideal for a one offering which allows users to focus on this.

Video Ad + -

Video ads are used to tell a story or convey a message more which you can’t do with a single image ad. Video ads allow you to upload 31 seconds worth of video, but you can also use moving graphics/animation for this.

Carousel Ad + -

These are used when you have different types of offerings. Carousel ads are used to showcase features of a product or service. This allows you to upload up to 10 images or even videos to help promote your offer.

Slideshow Ad + -

Slideshow ads allow you to compile images and videos to one ad. Just like the video ad, the animation will be eye-catching enough to get the user’s attention. These ads also load up faster than the video ads because of its format, so it’s not only easy to set up but effective as well.

Collection Ad + -

Collection ads are common among e-commerce brands. This allows businesses to display more product lines and offerings. The best part here is it’s easy for users to shop and check out. Seamless checkout process, more conversions.

Lead Ad + -

Lead ads make it easier for users to leave in their contact information as this is automatically filled in for them. This is usually a form which is perfect for sign ups, newsletters or events. Lead ads are a great way to create a steady flow of leads to your business as this supports your whole funnel strategy.

Dynamic Ad + -

Remember that Facebook allows you to reach people according to their activity and interests? Well, on the consumer end, it’s the dynamic ads that pop up. These ads promote targeted products to those interested in it. Have you ever experienced checking out a product, adding it to cart, however abandoning it and it continues to show up around your Facebook? Those are dynamic ads.

Facebook Story Ad + -

Facebook story ads are ads that take up the whole screen. This format makes it easier for users to digest as they don’t have to maximise or rotate the screen to watch it. It plays automatically on stories, user-friendly, and has a seamless process. As it’s  concise and easy to understand, it’s proven to lead to higher conversions.

Facebook stays up to date and even adds in different features for advertising. They also allow Facebook Live, Facebook stories, and can put up polls over your Facebook advertisement. Facebook stays up to date and adds a new feature from time to time, so businesses can get more from their ads. 


Different ad types on Facebook ask the same things: the headline, the description, the text copy, the link and the call to action. The primary differences are only in the creative and format. It’s important to note there are no strict rules on how to go about this. As long as the format of your Facebook ad clearly communicates your offer and message, you can utilise it effectively.


The 8 Facebook ads above are the typical ads you see as you scroll through your Facebook News Feed and even if the requirements for each are different, setting up whatever type of Facebook ad is fairly easy to do.


We’ve gone ahead and listed the terms you will encounter upon campaign creation. It’s important to know and understand these terms to avoid mistakes and set it up effectively.



You get an ad account by default when you have your Facebook profile. This ad account allows you to create and manage anything ad related on Facebook. To know more about adding an ad account, click here



The business manager is a dashboard where you can check your different ad accounts and their status. You can easily manage different brands and businesses with one account. Since Facebook allows you to work with other people or agencies, you can manage access and assign roles to others relating to your Facebook ad accounts and other pages.


This is the high-level structure of the Facebook ad. In this section, you set your campaign objective: whether it’s to gain page likes, app installs, or purchases. This is usually named as your offer.



The next level are your ad sets. These are your different target audiences. At ad set level, you can control your targeting, your budget per ad set, and the ad schedule. 



These are the different variants of your ad. Given you have different target audiences, your ad should resonate and communicate with them. It’s recommended that per ad set have at least 2 ad variants to get enough data. Each ad can have different creatives and text copies. 


To help you understand the Facebook structure, we’ve created a simple example to demonstrate how it is.

In this example, the campaign is ‘Sports Shoes’ with the objective of driving purchases. The ad sets are the different target audiences such as men and women. Given that those ad sets absorb messages differently, we have to create ads that cater to each target audience group. 


These may seem intimidating but at least understanding the structure will help you optimise your Facebook ad campaign.



As the name suggests, Placement means where your ad will appear. This refers to the Desktop feed, Mobile feed, Facebook and Instagram stories. While creating the ad, you will be able to see a preview of how it will look like across these different placements.



We do talk about conversions a fair bit, however to be clear, conversions are the actions that users take on your ad. This can be either those who have purchased or added to the cart all tracing back to your Facebook ad.

How To Set Up Your Facebook Ad

  1. Set up Facebook Ad Account
  2. Know your Objective
  3. Name Your Campaign
  4. Know your Target Audience
  5. Create your Ad Copies
  6. Set your Budget
  7. Choose your Facebook Ad Placements


Now that we have defined those terms for you, you can now proceed with creating your Facebook ad. Setting up your Facebook ad has never been easier because Facebook allows you to do this with their quick creation (guided creation), and business ads manager. Whether you’re a novice or a pro, you can create your first Facebook ad quickly and easily.


1. Set up Facebook Ad Account

Each Facebook user is entitled to a default ad account. If you are managing other brands, it’s important to sort them out properly to avoid confusion. Here’s a complete guide through setting up your ad account.


2. Know your Objective

This is your main goal for your ad. Facebook objectives are listed upon creation and you can choose among what are listed. If you need help in choosing your objective, click here. Facebook has different objectives for different funnel stages of awareness, consideration, and conversion. 


3. Name your Campaign

You should name your campaign in a smart and organised manner. If you plan on running numerous campaigns, naming it properly will help you determine and track each to efficiently analyse results.


4. Set up your Targeting

The best part of setting up your Facebook ad is the targeting. This is a smart way to approach advertising as you wouldn’t be burning money. You can specify the demographics, location, interests of your target audience. As much as you want to reach more people, choosing a broad audience wouldn’t be as effective as having a clearly defined audience. Facebook ad targeting even goes as far as adding custom audiences and lookalike audiences to utilise your ads more.


5. Create your Ad 

Choose among the different types of Facebook ads and create the ad depending on the format. You should keep in mind the format should match what you are advertising and communicating. It should work with your objective to maximise conversions.


6. Set your Budget

You should decide on how much budget you will need for the ad campaign. You can set up your budget on a Daily Budget or Lifetime Budget. Facebook allows you to have total control over this as you have different options to manage it. You can also schedule your ad and turn it on and off easily.


7. Choose your Facebook Ad Placements

Make sure that when you choose your ad placements, your ad should have the correct format to avoid errors in the ad. Setting it up clearly will likely increase your conversions or whatever objective you are aiming for.


8. Publish your Facebook Ad

Now that you have set up everything needed for your ad, it’s time to wait for it to go live. Set your expectations when it comes to your ad performance. Even though we mentioned Facebook ads are one of the quickest ways to advertise, it’s not magic. Learning how to effectively manage and optimise your ad are the key factors to scaling up your business.



One of the best things about Facebook ads is its ability to track and monitor your ad performance. You will be able to discover what’s working and what’s not, and use the data as a reference for your future ad campaigns. This way you can put your budget to where it actually works. 


Testing and optimising ads will set you up for success. That’s why it’s recommended to have at least 2 different ads per ad set as it will show enough data for you to compare. Once you know what’s getting enough traction, you can use that winning ad and continue to optimise from there. As you continue to manage different ad campaigns, you will have a solid understanding of what ads work for you and your business in no time.


Your Facebook ad Manager will give you a full rundown of relevant analytics to help and track whether you are meeting your business goals with your Facebook ads. You can get a full breakdown of your campaigns, the dates when it gets the most traffic, and even know the best ad performers at a glance. All activities run by you will have an equivalent metric which is valuable from a business perspective. You will be spending money smartly which actually contributes to the growth of your business.



The click-through rate is one important metric you should be looking at. This indicates how many clicks on your Facebook ad to how many have seen the ad. A high click-through rate means your ads are effective and doing its job. CTR helps you determine your relevancy score and optimise your ads to drive traffic. The click-through rate also affects the number of clicks and the value you will pay for each click.


The average click-through rate for Facebook ads is sitting at 0.90%. To know more about your CTR for your industry, check this report out. It’s helpful to know what your benchmark is for your industry to set your expectations and work towards your goal.



Cost Per Click or CPC is the amount you will be paying for per click on your Facebook ad. This is calculated by dividing your Total Cost of Clicks by the Number of Clicks on your Facebook Ad. The Cost Per Click is highly dependent on your Click-Through Rate. 


Facebook Ads with a low click-through rate will become more expensive. Serving ads that generate as many clicks will be beneficial for your CPC and your budget. As a rule:


More clicks = higher click-through rate = Lower Cost Per Click



This is the percentage value of people who click on your ad and take your desired objective. Usually, this is the metric that tells you how many purchased from your ad and became a customer. Your objective will be your benchmark to evaluate your ad’s performance. 


Some objectives you might choose for your campaign:

  1. Get more Traffic
  2. Generate Sales
  3. Lead Generation


Unlike the Cost Per Click and Click-through Rate, those metrics have no relation to conversions. Higher clicks or CTR will not necessarily mean higher conversion rates. To get people to convert, your ad should communicate clearly your offer and its value or benefit to your target audience. Pay attention to your conversion rate, once you improve over time, you can bring in more value to your business.



Here at Digital Deluxe, we like to focus on getting quick wins for our clients. Facebook Lead ads are one of the tactics we utilise for this. This strategy is more directed as it helps us focus on achieving those targets we have set. 


Facebook ads are common but we found that not a lot of businesses use this ad type to generate leads for themselves. Leads are highly valuable as they may eventually lead to paying customers. They are the key in order for your business to grow. Even if you may or may not be using Facebook lead ads as part of your marketing efforts, there’s always room to boost this. 



An important feature of Lead ads, as you may recall, are the pre populated forms. This allows users to instantly leave their details on your ad and make it a seamless experience for them. It may seem simple but it takes 40 percent longer to manually complete forms. Because of this feature of Facebook lead ads, this increases the chances of users leaving details in. 



Facebook lead ads aren’t just limited to getting contact information like names and email addresses. Lead ads also allow you to ask other information from your leads. This will help in qualifying them and find the leads that actually matter. 



Running your Facebook lead ad properly and efficiently will get you high-quality leads. Using targeted audiences and other optimisation features of Facebook, ads will help you get more of your money’s worth.



Facebook lead generation ads can automatically be synced directly to your Customer-Relationship Management system. This saves you time having to manually put all the details in and prevent you from committing errors. As your leads are valuable to you, you should take care of them and nourish the connection you have with them. This feature helps businesses’ sales team to track, get in touch with the leads, and close the sale.



With Facebook’s ad features, you can get everything you need with just a simple click. The reach and specific targeting of Facebook allows you to connect with more people and reach specific audiences who are ready to take action. Lead ads are a great way to take your strategy to the next level as it’s more defined and can help you direct your efforts towards your goal. This will also provide you with a steady influx of leads to upscale your business.



1. Define your target audience

Having a clearly defined target audience helps you find the leads worth having. Every cent you spend will highly benefit your business.


2. Have a clear offer

Users should understand your offer upfront to know what they are in for. Your ad copy and images are there to help support your messaging.


3. Ask Qualification Questions

There’s nothing better than qualified leads. Once you know how to get to your target audience, all your efforts will be focused on getting more of them. This will save you from manually calling them and further qualifying them.


4. Keep your form simple

It’s recommended to have at the most 5 fields on your form for your customers to leave their details in. You want this process to be as seamless and easy as possible for them.


5. Follow up efficiently

There’s no use for these generated leads if you won’t follow up. It’s up to you or your marketing team to close the deal and convert them to paying customers.


Facebook ads are a powerful advertising tool for businesses. This is a quick and clever way to easily get in front of your customers. As years pass, and users increase, Facebook will stay as one of the highly utilised tools in advertising. We have a full checklist here to get you started on your Facebook ad campaign.


We have discussed the important metrics to determine the performance of your Facebook ads. Note those metrics aren’t limited and the platform provides so much more. All metrics are beneficial to your business, so it’s important to understand how everything relates to one another. This will provide you valuable insight about your ads and even your business. Once you get the hang of creating ads, testing them, analysing, and optimising them – you’ll be a Facebook ad master in no time. 



Hopefully this guide did provide you with more insight on Facebook ads and inspire you to use them as part of your marketing strategy. 

If you are interested in getting this going for you but need assistance, don’t hesitate to contact us and book a discovery call with us.

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