To advertise on Facebook, or not to advertise on Facebook…that is the million dollar digital marketing question.
It’s a common refrain among small and large businesses alike – even though 1.23 billion people (and counting) are using the popular social media site. With such a massive audience pool to begin with, it’s guaranteed that a good percentage of your target audience will have a presence on Facebook (even if some are not regularly “active”). No matter what, the odds are certainly in your favor here. Still, it makes sense to wonder if spending a pretty penny on Facebook ads is really beneficial at creating engagement between your brand or company and your intended audience. As it turns out, Facebook advertising not only works for businesses, but is one of the most cost-effective means of generating brand awareness and targeting new leads.
Here are 3 reasons why Facebook advertising pays dividends:
1. The ability to target specific markets
One of the biggest advantages to Facebook marketing is the ability to specifically target your preferred audience. More traditional methods of targeting prospective customers based solely on simple demographics are inefficient compared to using more detailed psychographics to target consumers. With Facebook ads, you’re able to market directly to users – all based on their particular interests, age, gender, or online activity- at once. So if, say, you’re a ladies online clothing retailer, you can not only advertise to a specific gender, but also target those who shop online and have interest in fashion. You really can’t get more tailored than that, no pun intended. Why is this more effective for businesses? Because now your money isn’t being spent on ads going to an audience with no interest or intention of becoming a new customer; instead, targeted ads increase new business with potential customers as well as increase engagement with current customers. And the last thing a business wants to do is waste money. Speaking of money…
2. It’s cost-effective
Not only are Facebook ads gaining as much, if not more, awareness for your business than TV and radio, but they have the lowest CMP, or “Cost per 1,000 impressions” in history: an average $0.25 per 1,000. That is 1% the cost of TV advertising. Moreover, the minimum cost to advertise on Facebook is $1 a day, yet it’s potentially more effective than traditional forms of advertising (due to optimized targeting). By doing the quick math, that’s only $30 a month – obviously, very little risk with incredibly high reward- rewards you can monitor thanks to Facebook’s Ad Manager.
3. Tracking ROI and awareness
With Facebook advertisements, it’s easy to monitor spending, performance, and, most importantly, ROI. You can track the number of impressions (including reach and frequency), activity (page likes, comments, shares, etc.), as well as CPC, Cost per Like, and Cost per Conversion. By easily tracking consumer engagement, you can test different ads, promotions, and posts, as well as A/B test unique targeting options to see what works best for your company.
For instance, if you’re targeting prospective customers that aren’t relevant to your business, or if your ads have too broad a reach, then the corresponding page “likes” you acquire might be rendered useless – and in some cases, engagement will be minimal. On the flip side, Facebook advertising functionality has significantly advanced since it’s inception, and the targeting options have grown to become far more sophisticated. Advertisers are now able to target prospective customers based on particular interests, age, gender, or online activity – all in one fell swoop. So if, say, you’re a ladies online clothing retailer, you’d have the opportunity to both advertise to a specific gender, and target those who shop online and possess a vested interest in fashion. You really can’t get more tailored than that, puns intended.
[quote]So it’s no longer a matter of if your company should advertise on Facebook, but rather, deciphering the most strategic game plan to maximize engagement once you’ve decided to promote your brand socially. [/quote] To use a term popularized by comedian Will Ferrell, with a little “strategery,” employing Facebook’s sophisticated advertising features will ensure that the rewards far outweigh the financial investment.
Are you ready to hit the ground running by developing a well-executed Facebook advertising playbook for your brand? Contact our Florida marketing agency today to let us help you get a strategic jumpstart!