What are Facebook Ads?

Facebook ads are advertising on Facebook. It has a wider audience and additional applications such as Whatsapp and Insta.

Facebook's entire network has 2.2 billion active users per day and 2.8 million monthly active users. (Facebook, Audience Network, Instagram, Messenger). It is theoretically possible to reach 37% worldwide with Facebook each month. Facebook's vast user base gives companies virtually unlimited options to target and discover their core audience.

Facebook marketing is a simple and comprehensive way to reach customers at different stages of a sales funnel.

Facebook ads are a cost-effective, efficient tool for Digital Marketing. This increases a company's profitability and visibility online.

Advertising on Facebook is on the rise and will bring long-term benefits to companies who use it.

Targeting Facebook Ads

Targeting is the most important benefit of facebook certification. Facebook allows you to reach the most profitable customers.

A company's understanding of its target audience is key to creating more effective campaigns.

Targeting is a way to reach people you may not have otherwise.

Targeting can be done by selecting and combining interests, age, location, languages, or creating custom audiences using different data sources.

Data-based custom audiences allow you to create audiences using data from your website or past advertising events.

Examples possible custom audiences:

• Buy, Add-to Carts and View Content
• Leads
• Data taken from Facebook posts in the past
• Traffic to websites
• Video views (For example, 95% of those who watched a clip on YouTube)

These custom events can be used to create powerful retargeting ads. This is a great way to increase your return on advertising spend (ROAS).

Interest-based targeting is more effective at the beginning of campaigns as there aren't enough data to enable the creation of custom audiences.

Look-A-Like Audiences:

Look-alike audiences is the core targeting method for Facebook ads. Pixel allows you to target people with similar interests.

The audience of look-alike audiences matches the data from a single country. A look-alike audience is defined as a country's population divided by 1-10%.

Facebook can show ads to similar audiences, but with a larger audience that is more likely to convert.

You could create a 1% lookalike audience by purchasing events in a country that has the data.

You can also use look-alike audiences to scale your campaigns and increase the likelihood of success.

It is important to remember that, even if you have enough data, it does not guarantee that your targeting will improve results or convert more customers. Targeting can always be improved.

An example of testing target options:

• To measure targeting effectiveness, you can use the same ads in different ad group types.
• Use multiple targeting options among ad group and at least three ad group to test.

You can further optimize your look-alike audience by adding other targeting options such as ages, genders and localities.

Combining look-alike audiences to make Super look-alike audiences allows for better targeting. This allows for more effective scaling of campaigns by combining the most performing audiences.

Facebook Ads Budgeting and Cost

Facebook advertising can be paid by pay-per click or per 1000 impressions (CPM – Cost per Mille).

Facebook sets daily budgets, so it will attempt to stick to the daily budget. Facebook may overspend its daily budget in some cases but it will average it during the month.

Campaign Budget Optimization (CBO Campaign), is an option where Facebook optimizes and divides the budget used in a campaign to achieve the best results.

Campaign Budget Optimization Divides budgets among different ad groups to favor the best-performing ads.

Five key measures that will affect the cost of Facebook ads in an online auction:

1. Time

It doesn't matter what month, day, or time it is.

2. Bidding strategy

• Facebook will use the Lowest Cost Strategy to offer the lowest amount of bids in order to achieve campaign results.
• We define the maximum bid Facebook can use in order to achieve campaign results in the Lowest cost with Cap-strategy. If the bid is too low, this strategy could hinder campaign visibility.
• Target Cost-strategy only works for conversion-based campaigns. Target Cost allows you to tell Facebook how much you are willing to spend on each conversion. Target cost allows us to test profitability early on, if we know how much we can spend on each conversion.

Try different bidding strategies to test ads and observe their effect on advertising results.

3. Placements

The cost of advertising can also be affected by the placements. Advertising on Instagram Story and Facebook Mobile can have different pricing models.

4. Relevancy Metrics

Facebook uses relevancy metrics to rate the quality of ads.

• Ranking Engagement
• How many people click, like, share, and/or share the ad. If users hide ads or the ad doesn't get liked enough, it can lower the engagement ranking for the given ad.
• Qualitative Ranking
• It determines how well ads are matched to their target audience.
• Conversion Ranking
• This indicates how well the ad converts to its intended goal. It indicates that the ads convert well within its target audience.

Facebook advertising will cost more if the score is lower on a scale from 1-10.

5. Target Audiences

Targeting highly competitive audiences will cost more than targeting one that is less competitive.

Additional Costs for Facebook Ads

Campaigns with larger budgets or scaling will take more effort than campaigns with smaller budgets. Include the cost of any work.

Advertising takes time and should be included in the cost.

Simple image ads might be more affordable than video ads. Compare the production costs of different ad formats to determine if there are cheaper alternatives that produce more.

Tracking the success of your advertising campaigns is a key factor in determining its quality and effectiveness. Don't let your campaigns go unattended.

Types of Instagram and Facebook ads:

Facebook and its network provide many advertising options for companies in order to reach their goals. Advertisements can be customized to reflect the brand.

Before you start to avoid suspension of your ad account, or in the worst case, your Facebook business manager account, please read Facebook Ad Policy.

Facebook Ads Analytics: How do you track and optimize your ads?

You can track and optimize the effectiveness of Facebook marketing using various metrics such as Facebook Ad Manager and Facebook Analytics.

A Facebook pixel will be required to properly analyze the performance of your ads. Find out more here.

These metrics allow us to identify which ads and campaigns are not converting well. The increased data helps us see what works and what does not.

Our goal is to maintain the effectiveness of our ads and campaigns without making advertising too expensive.

What metrics are you supposed to measure in Facebook Ad Manager?

CPM

Monitor the CPM trend. An advertisement that costs more than the CPM might not be performing well.

CTR (Click Through-Rate) or Clicks

Your CTR must be at least 2%. You can increase your CTR by testing different titles, copy, and content.

Conversion Rate

If your campaign is conversion-based, track conversion rates. Good conversion rates have more to do than the product itself. A more complicated or expensive service will be less likely to achieve higher conversion rates than a simpler product.

Engagement rate

Are your ads generating enough engagement? An increase in engagement rates lowers advertising costs and lets us know what ads our target audience would like to see.

Better ads will be created by optimizing engagement rates.

It is a good idea to test campaigns with engagement results in your mind before converting those campaigns into conversion-based campaigns.

Prices per Results

CPR is the cost per result. This value is determined when the campaign is launched. CPR could refer to clicks, custom conversions, forms, and so forth.

If a product is purchased and makes a profit of $30, the cost per result for advertising is $35. This means that we lose 5$ per purchase in the short-term.

Important to remember that even a single purchase can make a customer a profit over time. All depends on the lifetime value.