Facebook presents businesses with the opportunity to reach their target market throughout the entire marketing cycle. While a small percentage of users are ready to purchase while they’re browsing Facebook, a much larger percentage of users are going to make a purchase in the future rather than at the moment they see your ad.
Fortunately you have the opportunity to build an ongoing relationship with your customer and that’s what Facebook is most useful for. It’s a platform to build ongoing relationships and “remarket” to your customers, as Facebook says in some of their own marketing copy. Understanding that these users are not ready to purchase is key to success on Facebook.
Often times on Google, advertisers will create an ad which targets every person in a single country and then split test two ad versions against each other. On Facebook this model will do nothing but cost you money. Placing a generic ad that’s targeted at an entire country, without any additional targeting, will do nothing but get you a lot of clicks and waste a lot of money for the most part.
Define Your Market
In order to become an effective Facebook advertiser, you need to have effectively defined your market. This will help you to take advantage of the 11 targeting factors that Facebook currently provides. To help define your market, you can go through the market segmentation process. This involves defining the need your company satisfies and then more thoroughly defining who your customer is.
After exhaustively defining who your customer is, you’ll be more effective at defining the targeting factors to be used in Facebook advertisements.
Split Test Ads By Demographic
Let’s say that you’ve created an advertisement that’s targeted at CEOs of companies in the Northeast region of the United States. You can create two advertisements and compare which version of the ad results in a larger response. An example lesson learned would be that “CEOs in the Northeast region tend to respond better to ads with the word ‘influence’ over the word ‘power’”.
As you narrow your targeting, you can begin to adjust your advertisements even further. For example, as a second step you can now create separate ads for CEOs in the Boston area and CEOs in the New York metropolitan area.
Targeting Factors Outlined
Facebook provides 11 targeting factors for advertisers. Below is an outline of each of those factors:
- Location – Facebook enables advertisers to target by country, state/provice, city, and metropolitan areas. All advertisements are required to have a location selected. This should be pretty straight-forward as to which location you’d like to select.
- Age – Age is a standard demographic factor. Most marketers that have a well defined target-market will be able to select their age.
- Birthday – This is one of Facebook’s latest advertising targeting filters. It should be pretty obvious what types of ads should be presented to people whose birthday it is. Try wishing the user a happy birthday and offer them a gift for higher conversion rates.
- Sex – Gender is another typical targeting filter for Facebook.
- Keywords – Keywords will are based on a user’s profile information including Activities, Favorite Books, TV Shows, Movies, and more. What types of products do your customers like? Spend time on this field and you’ll be rewarded.
- Education – While you can target based on their level of education, this is most effective for targeting ads based on the schools that people went to. Want to announce a reunion for the University of Illinois class of 1996? This is a great way to promote it.
- Workplaces – This is another great targeting filter. Oftentimes you will know the companies that your target market works at. If you are looking to get new clients or looking to spread awareness within specific organizations, this filter can be priceless.
- Relationship – Want to target people that are about to get married? This is a great tool for that. If you are a bar or club, you most likely want to go after those people that are single. While this filter can be useful, you also need to keep in mind that selecting any of these settings will remove all users that haven’t selected a relationship status in their profile.
- Interested In – This factor is useful if a user’s sexual preferences are relevant to whatever you are advertising.
- Languages – If your ad is in English but the user speaks Chinese, it’s probably not a good idea to be displaying ads to them.
- Connections – The connections allow you to include and exclude users based on pages, events, and applications that the users have joined and you happen to be the administrator of. If you’ve created a Page and don’t want the ads to display to people who have already joined, this is a great way to avoid duplicate clicks.
If you aren’t taking advantage of the numerous targeting factors then you aren’t using Facebook advertising effectively. In order to have an increased conversion rate on your advertisements, increase the targeting in order to make the advertisement more relevant for the users. Relevance will get people to respond to your ad.
Why is this powerful?
- The demographics are far more accurate than most data (age, sex, gender preference, relationship, etc.)
- The deep data – being able to choose to market to employees of specific companies – should be an amazing tool for the right advertiser
- The keyword associations that people have with their Facebook accounts are correlated quite highly with true interests
- The “approximate reach” number gives you great insight into your target market size (even if you never place an ad)
Facebook is about relationship marketing, not direct sales. That means it’s more important to build a relationship with a potential client or an existing customer than to close a sale right away.
Through Facebook advertising, users can become a fan or RSVP to an event directly from an ad. At that point, you have the opportunity to interact directly with that individual and build a relationship. If you had directed a user to your website, you would have been forced to have them enter a form or make a purchase right away. The odds of getting a user to fill out a form or make a purchase immediately is far less than getting them to become a fan of a Page or RSVPing to an event.
In addition to having an increased conversion, you are also now able to reach out to individuals directly if you wish. For example if someone RSVPs to an event, but you don’t know who they are, you can send them a message welcoming them to the event and inquiring about more information. This form of relationship building is used to build lasting customers, not one time purchases, and it is core to Facebook marketing.
Measure initial conversions as fans, comments, and likes. Since most users will not make a purchase right away, you need to make sure that you are at least engaging them. Follow-up with your fans often and consistently.
In terms of sales, the payoff will be further down the line so be prepared to spend over weeks and months, don’t blow your budget in a day. Unless you are an affiliate marketer (who has distinctly different goals), you should be invested in the advertising for the long haul. A one-week campaign is not going to bring you riches, but a long-term investment in advertising can produce measurable results.
This means don’t spend beyond your means for one week and have no money left at the end. Instead, set reasonable budgets that you’ll be able to handle for longer periods of time.
Monitor Your Ad Performance And Adjust Accordingly
Put the daily spending budget into place at a low level while you see how much traffic and at what cost you will get it. Keep a close eye on your campaigns, especially the first week. (Weekends can vary drastically from week days.)
Facebook provides advertisers with a number of monitoring tools including their basic ad manager area as well as downloadable data about each campaign you are running. If you visit the ad reports area you can download three types of reports to determine how your campaigns and ads are performing: advertising performance, responder demographics, responder profiles.
The primary things to monitor are clicks, click through rates (CTR), actions, action rates, and CPC. Each of these variables will differ depending on what type of campaign that you’re running but in theory, the more targeted your ad, the higher click through rate you should have. Additionally, your click through rate will tend to go down over time as your entire target population views your ad and decides whether or not they want to respond.
Test Landing Pages Versus Facebook Pages
In traditional online advertising, users are directed to a landing page from which they are prompted to fill in information in a form. This information is then typically used to send marketing literature. On Facebook, you want to build relationships but if the relationships you are building aren’t generating any revenue, you may want to diversify your advertising strategy by including some landing pages.
Yes, building relationships are extremely valuable and despite those users never making a purchase, they can become effective brand advocates that ultimately drive new customers to your business. For smaller businesses, investing in brand advocates is often considered to be a costly proposition which is why investing in some direct sales is always useful.
The point of this law is that Facebook advertising combined with relationship marketing cannot be your only strategy. You need to generate sales and sometimes that means being direct and converting a customer.
Creating Your Ad
Conversion is primarily about two things: your ad copy and the landing page. If your advertisement doesn’t provide a call to action, there is a good chance that the user won’t respond.
Be creative. You will most likely be spending dimes on the ads, and there’s almost nothing to lose if they don’t work. This is a perfect chance to take a risk, assuming you’re closely watching your ad performance.
Use great images. The wonderful thing Facebook ads open up is the ability to use images easily. For very low costs you can find images that you can purchase the rights to, and use on your ads.