Facebook advertising

What is Facebook?

Facebook is a social networking site that makes it easy for you to connect and share with family and friends online. Originally designed for college students, Facebook was created in 2004 by Mark Zuckerberg while he was enrolled at Harvard University. By 2006, anyone over the age of 13 with a valid email address could join Facebook. Today, Facebook is the world’s largest social network, with more than 1 billion users worldwide.

What is Advertising?

Advertising is the practice and techniques employed to bring attention to a product or service. Advertising aims to put a product or service in the spotlight in hopes of drawing it attention from consumers. It is typically used to promote a specific good or service, but there are wide range of uses, the most common being the commercial advertisement.

What is facebook advertising?

So, what is Facebook advertising?

        Facebook advertising is a marketing method that enables you to show tailored promotions to your audience to get them to buy your products or use your services. These promotions are stylized to fit your unique brand and attract qualified leads to your business.

What are Facebook ads?

Facebook ads are paid ads that appear in users’ newsfeeds and the right column on desktops. These ads look like a post from a Facebook user, allowing them to blend in with other content posts in a users’ feed.

Why run Facebook marketing ads?

Now that we’ve answered, “what is Facebook advertising?” and “what are Facebook ads,” it’s time to answer the next most common question: Why run ads on Facebook? Here are five reasons you want to use Facebook ad marketing for your business:

1. You have access to a large audience pool

One of the most significant benefits of running Facebook ads for your business is that you can access a large audience pool. Facebook has over 2.3 billion monthly users. With billions of people using Facebook, there’s a good chance you’ll reach people looking for your products or services.

2. People spend time on social media

When you invest in marketing for your business, you want to use strategies that enable you to reach people interested in what you offer. Social media is one of the best places to do that — the average user spends 28% of Internet time on social media. For Facebook, in particular, people spend a decent chunk of their day on the platform — the average user spends 40 minutes a day scrolling through Facebook.

Since people spend their time browsing through their feeds on this platform, it’s an excellent opportunity for you to reach them by launching Facebook marketing ads.

3. Advanced targeting options

When you market your products or services, you want to reach the people most interested in your business. With traditional marketing methods, it’s challenging to target people who want your products or services — your ads often appear in front of people who aren’t interested in your business. With Facebook marketing ads, though, you have more precise targeting options.

You can target people based on demographics, hobbies or interests, and much more. As a result, your marketing dollars are going towards people who are likely to purchase your products.

4. Easy set-up process

One of the most significant benefits of Facebook ad marketing is the easy set-up process. If you want to launch a Facebook ad campaign, it’s easy to set up. Facebook guides you through the step-by-step process for setting up the ad.

You’ll know everything you need to include in your ad through this step-by-step process and can launch it within minutes.

5. Friendly for your budget

The last benefit of Facebook advertising is it’s friendly for your budget. First, Facebook enables you to set the budget you want to spend on your ads. You don’t have to adhere to a specific amount, allowing you to have flexibility with your budget.

Another reason Facebook ads are good for your budget is the cost per click (CPC). Typically, Facebook ads operate on a pay-per-click system, where you only pay when people click on your ads. While there’s no set number for how much you’ll pay for each click, the average falls around $1.72 per click.

This number varies with industries, too, but it’s generally around the $1-2 mark. With a low CPC, you can obtain more qualified leads with your budget.

Why is Facebook good for advertisement?

  • Has global coverage
  • Offers highly targeted paid ads
  • Makes organic reach possible
  • Allows integrations with other marketing channels

Who Should Advertise on Facebook?

A key thing to remember with Facebook advertising is the people you reach aren’t actively looking to buy your product or service. They’re relaxing, engaging with friends, looking for funny videos, etc., and you’ve interrupted that with your advert.

It’s not often you make a sale with a single touchpoint, but it’s even less likely with Facebook ads because people aren’t actively looking for your products. Businesses that get into Facebook ads expecting a quick sale often end up disappointed.

Many businesses fail at Facebook advertising because they are not a good fit. You should always test new marketing channels, especially before demand drives up prices, but make sure to consider whether your business model is a good fit for Facebook.

Here are a few types of businesses that are likely to succeed with Facebook advertising.

Businesses With Low-Friction Conversions

The businesses that succeed with Facebook ads ask users to sign up, not to buy. You must use a low-friction conversion to be successful.

A visitor to your website wasn’t looking for your product. They clicked your ad on a whim. If you’re relying on them to immediately buy something to make your ad ROI positive, you will fail.

Facebook users are fickle and likely to click back to Facebook if you ask for a big commitment (purchase) upfront. Instead, stick to simple conversions like signing up for your service, filling out a short lead form, or submitting an email address.

Even if you sell products, not services, you should consider focusing on an intermediate conversion like a newsletter signup. Then you can upsell later through email marketing or Facebook retargeting ads.

Daily deal sites like Groupon, AppSumo, and Fab are good examples of businesses that can succeed with Facebook advertising. After you click one of their ads, they just ask for your email address. They’ll sell you on a deal later.

Business Model With Long Sales Cycle or Small Purchases

Even if you only ask for an email address initially, you’ll need to eventually make money from these users if your ads are to be profitable.

The best business model that fits Facebook ads earns revenue from their users over time, not all at once. A user may have given you their email, but you’ll need to build more trust before they are likely to buy anything.

You shouldn’t depend on one big purchase. Several smaller purchases are ideal.

Daily deals and subscription sites are great examples of business models that can thrive on Facebook. Both have customers whose lifetime value is spread out over six months or more.

At Udemy, they focus on getting users to sign up on their first visit. By aiming to be profitable on ad spend in six months (not one day), they turn Facebook users into long-term customers.

They target a 20 percent payback on ad spend on day one and 100 percent payback in six months. These numbers can serve as a rough guide for your business.

E-commerce shops

One of the best ways to promote an online store is by advertising on Facebook. Using Facebook advertising provides an opportunity to hone in and target specific demographics while also showcasing various ad campaigns to specific audiences you intend to reach. Promoting eCommerce stores with Facebook ads can also help you to gain valuable insights into what type of products or services are likely to attract the most attention and/or clicks.

Local businesses

For those who are the owners of a local business, social media platforms such as Facebook offer unique opportunities not only to reach other Facebook users, but also locals in your area who also have a Facebook account or page. Promoting local businesses via Facebook can also help with boosting your website’s SEO, or search engine optimization on traditional search engines such as Google, Bing, and Yahoo!.

Educational/informative brands

If you are trying to share information or if you offer virtual webinars or online educational courses, promoting your material on Facebook and with alternative social media platforms is highly recommended. Targeting users who are seeking additional education or those who are interested in the topics you are covering has never been easier than with the use of Facebook advertising.

Do I have to pay for Facebook ads?

When you create Facebook ads, like boosting posts from your Page, you don’t pay for them right away. Instead, as they run, they accrue ad costs that you’ll be charged for later

How Much Do Facebook Ads Cost in 2024?

The answer to “How much do Facebook ads cost?” is… “It depends.”

It depends on what industry you’re in, how competitive it is, who you’re targeting, where they’re located, what your budget is, and many more ultra-specific factors.

Keep reading for average Facebook ads costs in 2024. Learn how you measure up, and find out how to lower your Facebook advertising costs with data-driven decisions.

How does the pricing of Facebook ads work?

There are two ways to classify the cost of advertising on Facebook:

  1. Overall cost: The total you spend on a Facebook ad campaign and/or over a specific time period.
  2. Individual ad cost: The cost of each result (e.g. impression, click, lead, etc).

There are three ways to buy Facebook ads:

  1. Auction. The most popular option. You specify a maximum spend and Facebook attempts to get you the most results for the lowest cost. Your ad is displayed when you win the “bidding war” against other advertisers for a placement.
  2. Reservation. Currently only available for awareness and engagement goal campaigns, reservation ad buying allows you to reliably reach large audiences (e.g. over 200,000 people) for a consistent spend. It is not the most economical option per action and requires a high overall ads budget.
  3. Target rating points. Uses Nielsen target rating points to buy video ad placements, similar to TV campaigns. Currently this option is only available to select advertisers.

For those new to Facebook ads, we recommend setting an overall maximum campaign budget and using automated bidding strategies (a.k.a. the auction method).

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