Is Facebook Advertising Worth Spending Money

In my previous blog, I tried to explain you all how Social Media Marketing can create an impact in reaching your target audience, increase in quality traffic to your website and brand awareness.

However, in recent few years, the competition between brands and business organization of all sizes has increased. This is the reason marketers shifted their strategies towards Paid Marketing to reach their audience. Facebook Pay-Per-Click (PPC) most commonly known as Facebook Advertising is one of the most popular and top platform used by the Marketers nowadays.

So what  is Facebook PPC ? 

There are a few platforms that offer PPC advertising but the two biggest players in the market currently are Google AdWords and Facebook Advertising.

Pay-Per-Click is a form or internet marketing where a company pays to the platform only when their ad is clicked. For Example, Your Company  is running a Facebook Ad campaign and the ad is showing in the Newsfeed. Now if someone clicks on that particular Ad then the Marketer will pay to the platform i.e to Facebook.

You can create your Facebook PPC ads using the Facebook Ads Manager. You can create an Ad using any of the following formats:

i. Photo ads : You can use a Single image to show your Ad or convey your message

ii. Video ads : You can use a Video to reach and attract your audience

iii. Carousel ads : You can show multiple images or videos in a single ad to connect with your audiences

iv. Slideshow ads :You can create lightweight video ads to connect with people across connection speed

v. Collection ads : You can tell a story with a single ad that showcases your products or services

After the ad is created it can be used to show on different spots on Facebook like the Sidebar, Desktop or Mobile Newsfeed, Instant Articles, In-stream Video, Audience Network, Instagram feed, and Stories as  Facebook owns this as well.

How Facebook PPC Works?

1. Selection of an Ad Objective :Facebook ads work best when you are focused about what you want to achieve, this is why Facebook offers Ad objectives through which you can choose and proceed which will clear your Marketing goals for Organizational Campaign or Individual Ads.

i. Awareness Stage : This is the initial stage when you do have offerings but people don’t know about you or your offerings.Using these Ad objectives you can raise awareness.

The Ad Objectives are as follows : Brand Awareness, Reach and Video Views.

ii. Consideration Stage :This is the second stage when people already know you but they are not your customers yet. Using these Ad objectives you offer them to learn, follow and explore what you are offering by engaging them.

The Ad Objectives are as follows : App installs, Website Traffic, Lead Generation, Engagement, Video Views, Messages.

iii. Decision Stage : This is the final stage when you or your business has fans. So now you can convert them by using these Ad Objectives: Online Conversions, Product Sales, Store Visits.

2. Choosing your Audience : The Targeting feature built into Ads Manager allows marketers to create Ads and reach the right segment of people based on their Demographics, Location, Interests, and Behaviours.

You can create custom audiences using the following:

i.  Demographics :You can target audiences based on traits like Age, Gender, Education, Relationship Status, Workplace, Job titles etc.

ii. Location : You can reach the audience where you want to do your business by using Location targeting. You can also create a radius of your targeted location using Ads Manager.

iii. Interests :You can target your audience based on their hobbies, favorite entertainment, pages liked etc.

iv. Behaviors : You can target your audiences on the basis of their purchasing behaviors, device usage and other activities.

3. Placement : Facebook Ads Manager allows you to run your ads on Facebook, Instagram, Messenger and Audience Network on Desktop and Mobile with just a few clicks

4. Budget and Scheduling : Facebook allows marketers to control the budget of their campaigns.

The Budget can be allocated on the basis of running duration and are as follows:

i. Daily Budget : The maximum amount you want to spend per day on your campaign.

ii. Lifetime Budget : The total amount you want to spend over a set duration on your campaign.

You can always edit the set budget and duration of your ad campaigns. It also allows you to change the bid.  A bid is a maximum amount you are willing to pay when someone clicks on your ad. (PPC)

What are the Advantages of Facebook Advertising?

Facebook advertising has many key features which give it a competitive advantage over other PPC marketing platforms.

1. Presence of Global Audience : Facebook has over 2 billion users worldwide out of which around 1.23 billion users are active and over 1 billion users visit the website almost every day. Not only that but the users actually spend more time on Facebook compared to other Social media platforms. It gives an opportunity to the marketers to advertise their product or services and reach global audience

2. Targeting of Audience : Facebook Advertising helps you to narrow down the audience by offering various parameters and allows you to Target your audiences more effectively and efficiently. You can target your audience on the basis of Age, Gender, Location, hobbies, pages liked, workplace, job titles and many more. In short, you are not wasting your money by showing ads to the irrelevant audiences but using that amount to reach to your highly targeted market.

3. The budget for Ads :You can run your Facebook ad on any Budget. A marketer can set and change their bid, daily and lifetime budget for an ad campaign. So, you can use your money efficaciously for better results.

4. Extensive Analytics :Using Facebook ad reporting tools marketers can analyze the effectiveness of your ad campaigns in real time. You can analyze the following:

i. You can check the number of people saw and clicked your ad.

ii. You can measure the number of impressions your ad made.

iii. You can view your Cost-Per-Click Based on the number of clicks on your ad received divided by the number of impressions your ad got you can identify the CPC of your ad. (CPC=Cost to Advertiser/Clicks)

iv. You can identify the Click-Through Rate, which is the number of people saw your ad vs. number of people clicked on your ad. (CTR= Clicks/Impression)

v. You can measure the likes, comments and reactions your ad has received.

vi.Facebook has proven its ROI by placing the right Ad in front of a right person at a right time.

In fact, while comparing with the other social media paid campaigns it has proven to be the most effective social media platform for paid marketing leaving, twitter, YouTube and LinkedIn behind with a conversion rate of over 9% across all industries.

Is It Really Worth Spending Money?

With above-mentioned points, I can say that Facebook Advertising is worth spending money as you get a Global Audience to Target within your Budget with Extensive analysis and proven ROI. Any marketer can achieve a competitive advantage by properly creating and targeting their ads on Facebook.ᐧ

-Ved Sharma, Covenant Solutions

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