Facebook marketing is an excellent tool for small startups and businesses, even with a tight marketing budget.
How tight is tight? We share the ideal budget to leverage Facebook Ads.
With marketing, it’s all about the ROI or Return on investment.
Facebook Ads can help your businesses reach a new audience or attract new customers.
All it takes is a few clicks and a modest budget to promote your business to the world.,
Leverage Facebook Ads as a marketing tool.
Before you drop all your marketing budget on Facebook Ads, stop and think.
- Who is your audience?
- What’s the business objective?
Gone are the days of spray and pray – over a billion people are using Facebook in the world. So, you need to be very targeted to get results.
Here’s why you should use Facebook Ads for your business.
Savvy marketers know the power of Facebook Ads. Part of the reason they love them is because of how hyper-targeted you can get.
You can advertise and promote your business to specific customers.
Their secret? They use the “audience targeting” tool, and it’s part of the features inside Facebook Ads.
It allows you “the marketer” to target specific segments of the audience personas based on interests, location settings, and demographics.
Where else can you reach a specific target and audience, such as a 40-year-old mother in Sydney looking for kids shoes, and buying them online?
Facebook, that’s where!
You don’t need to be a professional marketer to know how to use Facebook Ads. So long as you apply a test and measure approach you’ve been able to leverage this tool and get results.
Some old-school marketers who rely on their gut instincts see advertising on Facebook as ‘money down the drain.’ But the data demonstrates that every dollar spent on Facebook produces learning and insight that gets you closer to your goal. A data-set that print and TV struggle to compete with.
7 Important Things to Consider When Using Facebook Ads
Ready to run Facebook Ads? It’s crucial to set up your Facebook Ads correctly.
The goal here is to reach your audience (customers) with great ads (content) that address their needs and wants (not yours) with the plan to turn them into loyal customers over time.
Here are seven tips on strategically creating ads to maximise your small marketing spend and get results.
1. Add a budget limitation for Your Facebook Ads.
The first thing we need to do is work out your weekly or monthly budget.
You can quickly rack up thousands of dollars if you don’t set the limit.
The ideal starting budget is spending $50 a week or $200 a month.
The following budget tips will help you avoid the most common mistakes that newbies make and save thousands of dollars.
BIG TIP: Set a lifetime budget, not a daily budget.
If you’re new, always set your campaign to “a lifetime budget, not a daily budget”, I repeat – if you’re new to Facebook Ads, always set a lifetime budget! Also, be clear on the start date and end date. 5-7 days is an excellent place to start. If you like your results, you can always increase over time.
Consider your Ad Account spending limit.
When you set-up your Ad Account inside the Facebook Business Manager, immediately set up an ‘Ad Account Spending Limit’ that monitors your budget and stops if it exceeds the limit you set.
This can be done in the ‘Payment Settings’ section on Facebook. The limit does not affect the delivery of your ads; however, once this limit is reached, Facebook pauses the advertisement automatically and waits for you to click reset.
This is your safety net and will stop your ads if you made a mistake setting up the ads or left them running for weeks. You don’t want to be ‘that person’ with a nasty bill from Facebook.
You don’t want to be ‘that person’ who planned to run $100 ads as a one-week campaign, but suddenly got busy and forgot about their ads to discover a $2000 bill weeks later.
This can be easily avoided if you did one thing – set a ‘lifetime budget’.
2. Again, know your target audience. Who are you targeting?
You can save quite a bit if you know who you want to target.
To win at Facebook Advertising (and marketing in general), it’s always about knowing your audience. Remember it’s about them!
Understanding who your audience is and what they need and want, helps you use the Ad tool to target interests and habits.
The best strategy for product sales is to target the people you know are ready to buy now. So, imagine your most common customer persona and target the same demographics and interests.
Click on the form below, and let’s test to see how well you know your persona.
Basics Ads Tip: Spit test your audience using the same demographics but change the ‘interests’ targeting variable to see which converts.
Advanced Ads Tip: Retarget audiences by creating custom audiences – using people who have clicked on your ad or been to your website. You can also upload your email list to Facebook and retarget that audience if they are also on Facebook.
Based on the results (and after a few days), turn off the ads and target audiences that are not getting results and reallocate the ad spend to audiences engaging with your ads to make the purchase.
3. Let’s define your marketing objectives.
With any marketing campaigns, think about the objectives or goals you want to achieve.
Some popular objectives for small business owners are to achieve the following goals with their Facebook Ads:
- Increase the number of emails
- Increase video views
- Increase sales conversion
- Increase website traffic
4. Creative is important. It grabs your audience’s attention.
Your Facebook Ads campaign will be competing for attention.
That is why your creative (i.e., video, graphics, photos) and copywriting are two essential elements that will help grab the attention of your audience.
If you’re on your mobile, you want your audience to stop while scrolling down their Facebook timeline. Your Facebook Ads must be eye-catching enough to hook them in.
Your ads set will impact your Cost Per Click and Cost Per Acquisition.
Facebook Ads are best when there are more visuals than actual text.
Do some essential homework and create a folder to save compelling Facebook Ads.
5. Calculating simple ROI for Facebook Ads.
You take the sales growth from the Facebook Ads cost and then divide by the Facebook Ads cost.
- Your sales grew by $1000
- Your Facebook Ads campaign costs you $200
$1000-$200 / $200 = 400%
Your ROI is 400%.
6. Ads Placement – untick everything.
By default, Facebook wants you to run your ads on every platform it has available. In other words, it wants to spend your money on everything, so you feed it more money. So, your $100 ads could disappear fast.
When starting out there are only one or two placements you should tick and nothing else!
- Facebook Newsfeed
- Instagram News Feed (only if your audience is on Instagram.)
By selecting only the Facebook Newsfeed, you ensure your ad is only displayed on Facebook and all results are easily trackable, measurable, and cost-effective.
7.Test and measure your Facebook Ads.
The power of Facebook is not about getting it perfect; it’s about constant monitoring and optimising your ads through lots of small tests until you hit that sweet spot.
If you are someone who complains that Facebook Ads do not work for you, chances are you have not tested the right variables to help analyse what areas require your attention. Make sure to make minor adjustments each time and keep track of any changes that make a difference.