Almost every client we work with asks 'Should I be using Facebook Advertising?' and boring and obvious answer is 'well it depends...' I hate that answer so I'm going to write this article which will cover a lot of the conversation that is had after 'it depends...'.
Firstly, there are over 1 billion active Facebook users, and in 2016 there was a whopping $33bn dollar spend on social advertising, Facebook accounted for a healthy 68% of that, meaning there is a hell of a lot of business and people out there that think Facebook is the place to be in terms of advertising. To have a slice of the action you need to get involved. Here are a few easy ways to work out whether you should be advertising on the social media platform.
How big is your customer database? Do you have a handful of clients or do you have hundreds maybe thousands of customers, old and new? If you have the latter then Facebook advertising is most likely for you, here's why:
Lookalike Audiences - Whether you have 100 or 100,000 customers, you can feed that data into Facebook and it will use its plethora of stored user information to build an audience that is similar to the users on your list (if it matches them to Facebook profiles). This feature was deployed years ago and, to be honest, was pretty crappy and a bit of a waste of time, but in the last 6 months Facebook's algorithms have been updated and it is now proving to be a cash printing machine that;s even more effective that saved or targeted audiences when used correctly.
Are you tracking pixel activity on your website? If you have no idea what I'm speaking about then use the contact form to get in touch and we can help you install the Facebook Pixel for a small one off fee. This could be your holy grail of gathering user data on site interaction.
So, if you're using the pixel are you getting close to, or over, 100 pixel events a day? If so that is great, we can use this data to create custom audiences and from that we can create lookalike audiences and as we've already covered, lookalike audiences are a great thing for your business.
One of the key benefits to using the Pixel data to create Lookalike audiences is the fact that it is near-real time data. Your contact list could be 12 months old and pretty stale, but the pixel events are constantly being triggered and so the information provided is far more up to date and reliable. The more events you have taking place on your site the better result you can expect to achieve on Facebook ads.
Another really easy way to decide if you should dip your toes into the Facebook ads world is whether you're B2B or B2C. Generally, when starting out, B2B customers will use Google for advertising and B2C will use Facebook advertising. This is for a number of reasons and you can read more on that by reading our post on Facebook or Adwords (be sure to finish this post first!).
To summarise the post, B2C is often better performed on Facebook due to the fact that Google has, on average, a much higher CPC than Facebook. Having a lower CPC on Facebook means that have more budget to spend and that means you can get in front of more people. If you're trying to increase gym membership, get more people to download your e-book or getting people to purchase your handmade goods, a lower cost per click means a lower cost per conversion, and a lower cost per conversion means more profit for you.
There are some cases where Facebook advertising might not be the best option, namely for very high value goods, but in general there is a lot of money to be made in advertising on Facebook. This is an area of our expertise and if you feel like you would like to discuss this further then please don't hesitate to get in touch for a free chat.