Do you have the SWOT analysis of advertise on Facebook read, and have you decided to look further? Advertising on Facebook is possible from 1 euro per day. The first question you ask as an entrepreneur: what should you do advertise on Facebook Ads costs actually? For that I look at the benefits, the technical advertising possibilities of Facebook, the relevance score and optimization.
Costs and benefits of advertising on Facebook
Something that costs money must yield something. Facebook as a communication channel is becoming less and less valuable: we all like more and more pages, but of the 1600 messages (and growing) that Facebook receives daily per user, only 300 are shown. (thanks to the Facebook Edgerank) Your message from your Facebook page is now only shown to an average of two percent of your fans. And that percentage keeps falling. Using Facebook Ads to grow your Facebook page is therefore more expensive than you might think in the long term.
The first introduction to Facebook Ads is namely 'Promote message". With that you buy the range that you previously received for free from Facebook (with organic range), but also far beyond that range. With message promoting you only bring your Facebook message to the attention of others. That results in more interaction on your Facebook message and ultimately more likes, if the content works well with your target group. You do this especially if you want to achieve more reach on Facebook in the short and long term.
Facebook Ads is an advertising channel
It is important not to see Facebook as a separate channel: your customers have contact with your company through different channels. Those are own channels such as your website, newsletter, Facebook, Twitter, LinkedIn, printed matter, your store etc, earned channels such as press releases, retweets and shares, guest blogs etc, and paid channels: Google Adwords, newspaper ads and Facebook Ads. All these channels work together and form one customer journey for your customer before he (or she) purchases a product or service from you.
Estimate Facebook Ads by value
For example, if you want to enable me for your Facebook Ads, you send me an email and I will call you. It started with your Google search or a message on social media, and that is how you came to Bloeise.nl. So those are already four channels. Before booking your holiday you can consult dozens of different sources and channels before you have the booking confirmation in your mail. If you want to value Facebook advertising, you must have an idea of the effect and role of Facebook Ads in relation to all your marketing activities. Yes that sounds like work, sorry. But with this you will ultimately save money and time: you then know which paths through which channels your corporate advertising works optimally. And for clarity, free advertising on Facebook does not exist.
Facebook Ads for relationship management
Facebook is rather a means to go for service and relationship management and is less suitable for direct sales. Advertising on Facebook has more in common with that email marketing then with Google Adwords for example.
Set the cost of advertising on Facebook
In addition to boosting a Facebook message, you can set up an advertising campaign with underlying advertisements for advertising your company or product. You have two options for setting your budget per campaign: per day or maturity budget. The latter means: your total budget for the entire duration of your campaign. Overall, you can also have one for your account spending limit which ensures that all advertisements are stopped as soon as the set limit has been reached. The budget has now been set. How is your budget then spent on bids? That depends on your chosen objective.
Facebook objectives: CPM or CPC
Faebook offers the following objectives:
Click to website: send people to your website.
Website conversions: increase the number of conversions on your website. (you need a conversion pixel for this)
Involvement in page notification: promotes the interaction around your Facebook message: likes, comments and shares. (boost)
Page-like likes: promote your Facebook page and generate new page-like likes.
App installations: make sure that your app is installed more.
Involvement with app: increase involvement with your app (installations, use and spent credits)
Claimed offers: make offers that people in your store can use.
Local fame: reach people close to your company. (for stores)
Responses to events: increase participation in your event.
Video views: Create ads that make more people watch a video.
You usually pay for ad views, with Facebook optimizing your ad to reach your precise goal. Display is paid as CPM: cost per mile (1000 views). If you advertise for a page, app, event or external website, you can also set a CPC: Cost per click. (you will find this below How much do you want to spend / Show advanced options). That therefore differs per objective. For a campaign with the aim of 'Click to website', you get the following options:
- Click to website: the ads are shown to people who are likely to click through to your website (CPC)
- Click: The ads are shown to people who are likely to click on your ad (CPC)
- Unique range per day: your ad will only be shown to people once a day (CPM)
- Views: your ad is shown to people as often as possible (CPM)
What is a good offer?
You do not always pay your maximum bid. Facebook recommends bidding on the actual value that you assign to your goal. It may pay to bid much higher: this may make your average CPC (retrospectively) lower. Your daily budget must be at least 2x your bid. Facebook indicates in which range a bid must fall to be included, but that depends on the number of people on Facebook and the competition of course.
Lower costs for advertising on Facebook: relevance score
Ultimately, of course, the question is: how can you advertise on Facebook at a lower cost? Now Facebook also enters ad management (and not only in the Facebook Power Editor, free tool to manage your advertisements, especially interesting when you do a lot of advertisements) a relevance score per advertisement. It answers the question: how relevant is your advertisement for your chosen target group? The more relevant, the lower your costs will be. A general marketing tip: high relevance = lower costs.
How does Facebook relevance score work?
Ads that are shown at least 500 times a day receive a score of relevance between 1 and 10. That score is calculated based on the feedback Facebook receives: positive or negative. Positive is interaction and negative is hiding your ad. Facebook takes this score into account in its advertising display system: the goal of Facebook is to give the most positive experience possible (so that users spend as much quality time on Facebook as possible). The Facebook relevance score means that it pays to try out multiple ads (at least 500 views per day per ad) and to continue with the best relevance score. Has your campaign been running for a while, and do you see a low relevance score appearing with an advertisement? Then see how you can improve the advertisement or the target group:
- Specify your target group: the more specific, the more relevant.
- Improve your image: does the image match your message? With the target group?
- Renew on time: an advertisement that is regularly shown to your target group will get bored.
And continue to test and analyze critically. Which advertisement scores high and why? How do you repeat that with another advertisement?
Do you pay too much for your Facebook Ads? Read much more here tips for increasing Facebook relevance score about your advertising costs straight away to lower.
Keep optimizing for relevance
This directly coincides with increasing the relevance score: provide a unique advertisement per target group. Optimize yourself per target group advertisement, by testing A / B with multiple advertisements.
Optimize target group
Stay you too target audience optimize. One way to find an interesting target group is to read your customer base (e-mail addresses, at least 100) into Facebook Ads as a Facebook audience (adapted target group), and then choose Lookalike audiences (comparable target groups). Facebook ensures that you reach similar people. For example, if you have an Italian restaurant, Facebook will check if people who love Mediterranean are interested in your advertisement.
Create Lookalike target group
Facebook also offers the possibility to collect the Facebook IDs of people who visit your website or page (via the Facebook pixel) or use your app (via a set event). So you can display Facebook ads on people similar to those who viewed your quote page, or viewed your contact information in the app. How relevant do you want it to be?
Optimize your bids
Do you work with CPC? Try CPM. And vice versa. Ultimately it is about relevance per advertisement that ensures interaction and therefore lower costs. Whether CPC or CPM is cheaper must be discovered by yourself. That depends on all the different factors. With your bid, try to be below the maximum bid and above it. Just remember that you have paid tuition fees to learn how to advertise more efficiently on Facebook.
Experiences cost advertising on Facebook
Two recent examples for a video-focused campaign, one in the Netherlands and one in Bulgaria. An important difference is the message itself: a 4.5-minute video that tells what is happening in healthcare or a 1-minute video with a dog. The latter fits in better with the experience that people have on Facebook.
Got a video (of 4.5 minutes) 104,000 impressions (no views but seen in the timeline) on one buget of 500 euros. 17,858 actions on the advertisement, the clickthrough rate is 12% and the relevance of the ad 10/10. Actions include clicking on the video, like, response, sharing. Video is of course way too long (1 minute is ideal), so 30% of the video is viewed on average. (1.25 minute).
Average cost per message involvement is 0.03 cents.
Got a video (1 minute) 18,886 impressions on a budget of 2 euros, a clickthrough rate of 8.964%, (commitment of 9,35%) and 3259 promotions:
- 1707 Video Views
- 1470 Video Plays
- 40 Post Likes
- 15 Post Comments
- 12 Page Likes
- 11 Other Website Conversions (Conversion)
- 3 Website Clicks
- 1 Post Shares
Average cost per message involvement is less than 0.01 cents.
Facebook payment methods and Ideal
Not everyone has a credit card, and yet that is the main payment option when advertising on Facebook. Also provide the billing address that goes with the credit card. Other options are: Facebook advertisement receipt, PayPal and Bank account:
- Facebook advertising coupon: the voucher that you get in and out of to try out advertising on Facebook;
- PayPal: you can top up your PayPal credit with Ideal.
- Bank account: set one automatic collection in operation. (works for private and business accounts)
- Prepaid (IDEAL): Pay attention! It can take 3 to 5 business days for prepaid to actually become available in Facebook Ads after you have paid. Read further on Facebook.
Facebook marketing in 60 minutes
€ 12,50 via Bol.com
Excellent book to start advertising on Facebook. Get yourself thinking about your Facebook goals. What do you ultimately want to achieve? This book explains the basic principles in 60 minutes.
Written by Marcel van der Heijden, founder of a friend of mine, the first Facebook marketing agency in the Netherlands. View here on Bol.com.