- 7 Techniques To Minimize Your Facebook Ad Costs.
Promoting your business, product, service or brand on Facebook are often expensive. You’ll see reports of the many advertisers spending hundreds or thousands of dollars every single day on Facebook Ads!
These advertisers are actually giving Facebook their entire advertising budget
for two reasons:
(1) Facebook Ads work.
(2) It is relatively cheaper compared to other advertising platforms.
Facebook Ads work so well, a lot of companies have stopped advertising
on other platforms and instead focus all their attention on Facebook. Now,
these advertisers have gotten ad optimization right down to a T.
They spend fewer dollars per conversion than other platforms. And because
of the quantity they get to ‘save’ on Facebook, they’re putting more of these
advertising dollars to further expand their reach on Facebook and obtain more
people in their sales funnel. If you would like to understand how these successful Facebook advertisers are ready to minimize their ad costs, then read on because today I’m getting to be sharing with you seven tried-and-tested methods for lowering your Facebook Ad costs.
Let’s begin!
- Technique #1: Set a bid cap
Setting a bid cap is vital if you would like to regulate what proportion you would like to
pay for each bid or per action that your audience does. If you have a
specific budget in mind, and you have already got a perfect cost per acquisition or
per action, then you'll set that as your bid cap. Here’s an example:
You have a daily budget of $10, and your campaign objective is to get people to click on your ad and attend your website. The landing page on your website is selling a $50 item where you make a $25 profit per item. You know that supported past customer behavior on your website, you get on average a ten percent conversion rate which is pretty good because it means
1 out of 10 people who go on your site buy that product. With such a profit margin, you’re willing to pay $0.50 per click. So you set that as your bid cap. Facebook will then charge your account a maximum of $0.50
every time someone clicks on your ad.
With a $10 budget, you can have at least 20 clickthroughs to your website.
This means that together with your product’s 10% conversion rate, you’re probably going to make 1-2 sales ($25 to $50 profit) per $10 ad spend.
Knowing the maths behind your ad campaigns will assist you optimize your ad
budget be it on the campaign level, ad set level, or ad level.
- Technique #2: Get more people engage with your advertisement.
Getting people to interact together with your ad is perhaps one among the simplest ways to minimize your ad costs. However, this is easier said than done. We all would
want to get the highest possible conversion rates and have everyone we target to look at our ad. But obviously, this doesn’t happen in real life. People go on Facebook to socialize with their family and friends. They don’t go on Facebook to look at adverts! To get people to pay attention to your ad, you have to urge creative and think outside the box. Ask yourself if you were your audience , would you
stop scrolling your news feed to seem at your advert? Be objective and don’t let your bias inherit play.
If you answered, yes, then your ad could also be ok . If you answered no,
then you’d have to go back to the drawing board and start again.
Alternatively, if you work alone, you can ask somebody else’s opinion on
what might work. If you work in a team environment, then that’s better
because two or more heads are better than one, so to speak.
Brainstorm on ways you'll possibly catch your audience’s attention. Write
everything down and plan how your ideas are getting to translate to Facebook
ads. It’s important you are doing this because when more people engage together with your ads, it sends a message to Facebook that folks are finding your ad to be valuable, and will thus reward you with lower ad costs.
- Technique #3: Give away valuable free stuff.
In connection with technique #2, when
you think outside the box, think about
giving away valuable freebies to your
target audience. People love free stuff,
plain and simple. When they think they’re getting something valuable for free of charge, they’re going to love you for it!
But what kind of free stuff can you give away to get people to engage and
click on your ads?
There are literally many sorts of free stuff you'll divulge to your audience. counting on your industry, your audience could also be encouraged to engage together with your advert if you give them a really valuable eBook that addresses their pain points, a brief but comprehensive email course, a free sample of your product, a free trial, a reduction code, then far more .
To know what will work best with your audience, you have to know who your
audience is first. For instance, if you know the majority of your past customers are mothers of 1-2-year-old boys, then you've got to consider something that will get the attention of these mothers.
If you’re selling baby stuff or mommy stuff, then maybe consider making a gift of
a free course on how to potty train toddlers or maybe how to lose postpartum weight. This will depend on your product of course. Your free stuff has to relate to the product you’re selling.
Whatever item or service you select to offer away for free of charge , make it as
irresistible as possible. You can also try putting in some scarcity in your ad.
Don’t be afraid to tell your audience your freebie is only going to be up for a
limited time or to a limited number of people. Try this technique and watch
your engagement go up and your ad costs come plummeting down!
- Technique #4: Target custom and look a like audiences
With Facebook’s hyper-targeting options and advanced remarketing tools,
there’s just simply no better audience to focus on together with your adverts than custom audiences and look a like audiences (from your winning audiences).
Custom audiences are so important than essential to minimizing Facebook
ad costs because these are people that already know your brand or your
business. You’re not targeting cold audiences who probably know absolutely
nothing about you which means they don’t trust you and may not be willing to
do any business with you.
Custom audiences, on the opposite hand, have interacted together with your business Either online or offline. There’s a level of familiarity that exists between you
and this audience, so it’s much easier to sell to them and get them to convert.
This is important because when people know your brand, they might be more
likely to engage with your ad. This, in turn, leads to lower ad costs for your business.
If you have a website, install the Facebook pixel on it right away. If your business is offline, you'll still collect your customers’ data and upload it to Facebook to create a custom audience.
The important things to believe with custom audiences is you've got to
figure out how to get them to engage with your business again. Maybe an ad
re-introducing your brand to them would help to place them comfortable so try that
tactic as well. Once you’ve found a custom audience that reacts positively together with your ad (high conversion rates), you can then create a lookalike audience so you can reach more of the same people!
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- Technique #5: Split test your way to success.
Don’t accept making one or two ads only. If you’re serious about succeeding on Facebook Ads, then you need to spend some money on it first. One of the best investments you can make on the platform is by split testing your adverts frequently.
Test which headlines, which images, which products, etc. your audience is going to respond favorably to.
Just confirm that when you’re split testing, you simply test one element at a
time so you can say with certainty that an element is or isn’t working for your
audience. If you test 2 or more elements, you’d only ruin your split test and you’d haven't any tangible proof that it had been indeed element 1 that caused your ad to flop, and not element 2.
Split testing is like educating yourself on what ad creatives are getting to work
best for your audience. You’re essentially paying for your failures, but once you find the winning combination of ad copy, ad graphics, placement and audience, then you’ll be thankful for your split tests.
Once you discover a winner, you'll easily scale your ads and reach more people. Since you’ve already done your homework on what’s working and what’s not, then in your future ad campaigns you’ll be ready to use your well-optimized and high converting advert and buy it with fewer dollars per conversion!
- Technique # 6: Use video ads.
Video ads are one of the best-kept secrets of successful marketers who pay a fraction of a penny for each video view. Of course, not all ad campaigns are going to enjoy video ads, except for those that do, you’re getting to benefit big time!
People on social media are all about self-gratification. They don’t want to do a
lot of hard work while on social media. Instead, they want to relax and not
think about work or school. This is where video ads shine – all they need to
do is just hit the play button (if they haven’t set it to auto-play), sit back and
watch your video!
There’s no walls of text to read, no tiny fonts to squint at. And they get your message just by watching a couple of seconds of video!
Some marketers may say that while video ads are terrific for engagement rates, it doesn’t translate directly into sales. Well, that may be true, but it really depends on the kind of products and services you’re offering – not to mention, your audience, your video ad presentation, then many other factors.
The point is that with video ads, it is possible to get 1,000 views for $1 or $2!
There’s probably no easier thanks to achieve this type of ad spend either on
Facebook or on any other advertising platform!
- Technique #7: Refresh ad creatives
Sometimes advertisers become complacent with their high-converting ads.
They go on holiday for a couple of weeks and forget to pause their ads. When they
log on to their Facebook Ads Manager or Business Manager account, lo and
behold, their ad costs have gone up by 100% or 200% or maybe more!
At this point, they’d be scratching their heads because before they left, they
were getting really low ad costs per conversion. But after a few weeks,
they’re spending such a lot for an equivalent advert (they probably also forgot Tip #1 – set a bid cap).
When you think about it, it’s really not that surprising. They’re targeting the same group of people using the same ad creatives. Who’s not going to get
bored with that ad?
Once you’ve seen a billboard a couple of times – regardless of how creative or engaging. it was the first time you saw that ad – you’re eventually going to get tired of
seeing it on your feed!
The important lesson is to require note
here is that you simply must always remember to keep your ads looking fresh.
Even if you continue vacation for a couple of weeks, you'll always set a billboard
schedule.
For example, if you'll run advert 1 for the primary 5 days, then advert 2 for the
next 5 to 10 days, and so on. With fresh ads you can keep your audience engaged,
you can expect your ad costs to stay as low as ever.
Apply all the seven techniques you’ve read during this report, and your
conversion rates go up and your ad costs come crashing down in your next
ad campaigns!
