If you do a quick Google search for this exact question, you’ll find a whole lot of guides and blog posts giving you a breakdown of the cost per click (CPC), cost per impressions and cost per result of the different types of ad campaigns you can run on Facebook. Let me save you some time, here’s a quick and easy breakdown:
This was taken from webfx.com and while it gives you a good idea of what is possible, it’s as flimsy as any other stat out that’s pulled out of context and it isn’t the question we should be asking. Why?
Because, these are front end stats. It doesn’t matter how cheap your cost per click, impression or even cost per lead is if it doesn’t result in a sale and contribute to an overall higher profit margin. This is where Facebook differs from other pay per click advertising platforms. Advertising on Facebook isn’t a numbers game, with Facebook you can get detailed with your targeting and usually the more detailed you can get, the better results you achieve.
So, if we’re looking at costs of advertising as a factor then we need to consider the cost across the entire sales process to determine actual ROI and whether we’re actually reaching the kind of customers we want, which leads us to the next question…
Are Facebook Ads Still Worth it?
Are Facebook Ads worth it for B2B (Business to Business) companies?
Are Facebook ads worth it for small businesses on a budget?
Are Facebook ads worth it for medical businesses?
Are Facebook ads worth it for insurance businesses?
And on and on and on…
The answer – yes, no, i don’t know … I’m always not sure how to reply because it is sooo subjective.
These questions might help you quickly figure it out though…
1.You will not make sales immediately, are you willing and able to set aside a portion of your budget for testing, branding and educational campaigns?
2. Facebook has strict policies for advertisers and you need to play by their rules, are you willing to be flexible with the way you communicate in your ads?
3. It’s all about being super targeted, do you have a clear understanding of who your target audience is, what brands they like, what books they read, what events they attend, what other interests they have, what they value, etc?
4. For you to grow a steady stream of sales from Facebook ads you need to build a finely tuned “funnel” which means understanding how Facebook ads fit into your entire sales process. Are you willing and able to invest the time required to setting up and optimizing your funnel?
Should I try advertising on Facebook?
Here are some factors to consider before deciding to advertise on Facebook.
Your immediate goals
If you’re immediate goal is to make quick sales and you don’t already have an engaged audience on Facebook, chances are Facebook ads might not work out for you. You’re better of spending your money to get your promotions/offers/products in front of people already in buy mode. You’ll probably see better results from advertising through Google Ads rather than Facebook ads.
Your current expertise
I see this happening all the time… someone hears about Facebook ads through a friend, watches a few quick videos, logs into Facebook, haphazardly creates their first ad (yes just one, not even through a business manager account), throws some money at it and a week + a couple hundred dollars later, proclaim that Facebook ads just don’t work!
The danger with Facebook ads is that Facebook makes it relatively easy for you to quickly setup and publish ads. It isn’t rocket science, you’re even taken through a “guided ad creation” process if you’ve never advertised before. However, publishing ads without a strategy or testing process to single out profitable campaigns will get you nowhere and burn through your budget quicker than you can say holy moley guacamole.
“Know thy audience” – If there were ever a stone with the 10 laws of digital marketing inscribed on it, this would probably be the 1st law on the list. Believe it or not, sometimes Facebook ads don’t work because that’s not where your audience is!
Wait… but isn’t everyone on Facebook?
No. Depending on the nature of your products/services and also the demographics of your target market, Facebook might not be the best platform for you to advertise on.
For example, earth moving construction businesses, commercial roofing service providers, corporate insurance providers, etc.
I’m not saying that these types of businesses can’t advertise on Facebook, I am saying that these types of businesses might benefit from advertising on Linkedin or Google instead to appear in front of the people who might actually be potential customers.
Your budget and resources
The last but important factor to consider is the budget and resources you have at your disposal.
- Using Facebook ads to drive your businesses growth online means creating a well thought out strategy and not just publishing ads.
- If you’re just starting out or have been running ads with not much success then you’re really starting from scratch, which means a significant portion of your budget needs to be allocated to testing different audiences, ads and offers initially until you can dial down into audiences that resonate well with your ads.
- Constant testing means having the technical know-how on tracking, setting up and optimizing ads, copy writing, video and graphic editing. Now imagine doing all of this by yourself while running your business at the same time…if you aren’t already bald, you’ll be well on your way there. This is why you need a freelancer/partner/team to help if you plan on using Facebook ads to grow your business.
If you’re running ads on a small scale as an entrepreneur, start up or small business, the most important skill to learn is how to rapidly test ad campaigns. If done correctly, Facebook ads can be a really effective way to get quick feedback for your products/services without costing you a an arm or a leg.
If you’re interested in learning how to setup rapid fire Facebook ad campaigns, optimize performance and then interpret the data you receive into actionable insights for your business’s online strategy then join my monthly Facebook Ads Quick launch Workshop if you’re in Bangkok or access the training on Udemy.
The aim of both are to get you setup and running your first campaigns in under 2 hours with instructions on how to optimize and what metrics to look at for each business goal.