Facebook and Instagram Ads
Facebook isn’t just great for communicating with your existing audience. It’s also a powerful tool for finding new customers. In fact, Facebook advertising for many businesses is the best digital advertising option. Here’s a closer look at some of the key benefits: Targeting. Facebook might offer the most targeted advertising you can buy online. And that’s why it can be so effective. You can target your ads to very specific audiences based on:
- Demographics – Target age, education, gender, workplace, and much more.
- Location – Target specific localities or even people within a short radius of your physical store.
- Interests – Show your ads to people who share similar interests and hobbies.
- Purchase behaviour – Connect with users most likely to make a purchase.
- Device type – Target desktop, mobile or tablet users with unique messages.
- Website visitors or app users – Utilise the Custom Audiences feature to target your existing leads, visitors or users.
- Lookalike audiences – Build audiences that are demographically similar to your existing customers.
Cost Effective. Facebook advertising costs a fraction of what you’d spend on traditional media. You can expect to pay an average of about $8 per 1,000 impressions (CPM) on Facebook, compared to $38 on TV. And you have full control over it. Just set a daily or weekly budget – as little as $1 per day – and Facebook maximises how many people see your ad. Ad Types. Another bonus: Facebook offers a full range of ad types, including photo, text, video, slideshow and carousel ads. Once you’ve chosen an ad type, you can then build campaigns around specific objectives:
- Link Ads – Drive traffic to your website with ads that show up in users’ newsfeeds and/or desktop sidebar.
- Lead Ads – Lead ads are designed to drive a specific action like signing up for an email newsletter, or browsing your products online.
- Dynamic Ads – Dynamic ads retarget customers who have viewed products on your app, website or elsewhere on the web.
Facebook ads work like AdWords. They take bids from advertisers and compare to see which is the most relevant to the user’s needs. Marketers choose to be charged by click or how engaged somebody is in their ad. This engagement strategy is equal to impressions. For example, advertisers can choose to pay when a specific percent of an ad’s video is viewed. The formula to win an ad auction on Facebook goes as follows: Bid amount plus ad quality and relevance plus estimated action = Rank.
The ad campaign with the highest rank wins the auction and is seen as a sponsored post by a Facebook user. Facebook’s ad quality and relevance is similar to AdWords quality score. If an ad is good quality and relevant to the target audience, Facebook increases the quality score. The estimated action is determined by how likely a person is to take the action that the ad is optimized for. There are two bid strategies on Facebook, the lowest cost strategy and the target cost.
Each strategy requires a budget, like in AdWords, so Facebook knows when to cap promotions. The lowest cost strategy focuses on getting the lowest cost per result. It is designed for advertisers who are looking to make the most out of their marketing budget.
Users set a budget but have the option of choosing a bid. If the user chooses to allow Facebook to determine the bid, they will make bids with the goal of winning as many auctions as they can within the stated budget. On the other hand, by bidding, a user tells Facebook the maximum amount they are willing to pay per auction.
Here are Facebook’s recommendations for deciding to use a bid cap or not: Use a bid cap if the goal is to keep the cost per result at a specific dollar amount. Do not use a bid cap if the goal is to get as many results as possible. The target cost strategy is designed for users who want to see a consistent cost per result. An advertiser who wants to spend $5 per each result is going to want to use this strategy. Facebook has a shared budget feature like AdWords, allowing one budget to be set across multiple campaigns
Instagram – being owned by Facebook – offers a number of the same advertising benefits to a business.
You can use advanced targeting to get your ads in front of the right customers. Plus, the ads are cost-effective, and you can utilise a variety of ad formats (all visual based).
Instagram paid advertisement works in the same way as Facebook’s. They know a lot about their users and are able to target the people who will be most interested in a particular profile or product. Both social platforms use the same formula to auction advertisements. There are two options for budgeting, a daily budget or a lifetime budget.
Once a budget option has been chosen for a campaign it cannot be switched. Daily budget refers to a set daily allowance that a marketer is willing to spend on ads per day. This budget is an average of how much a user’s ad will cost. For example, with a budget of $5/day for a week-long ad campaign, Instagram will bid above and below this amount depending on other relevant bids. At the end of the week, the total amount spent that week will average $5/day even though the daily bid amount might be above or below $5. A lifetime budget is a cap for how many dollars a campaign can spend on Instagram.
A lifetime budget is the automated choice and allows Instagram to allocate the budget across the span of the campaign as it deems fit. Instagram asks users to clarify the goal of their ad campaign. There are six goals, to increase conversions, post engagement, impressions, link clicks, daily unique search and brand awareness. Optimizing for conversions tells Instagram to put an ad in front of as many people who have shown prior interest in a similar business. These people have the highest chance of converting to customers.
By optimizing for post engagement, an audience that is most likely to engage with the ad via likes, shares and comments are who the ad will be promoted to. It uses the lowest cost strategy to put the ad in front of as many users that have the potential to become customers as possible. Impressions optimization is for ad campaigns whose goal is to get their post in front of as many people as possible.
Instagram won’t take into account conversion optimization and will use ad dollars to win as many auctions as possible. Link clicks is like optimizing for post engagement. Instagram will place the ad in front of the people most likely to click on the link. In this case, a user is charged per click, with a maximum daily budget.
Daily unique reach puts an ad in front of the target audience but only once per day. Brand awareness is similar to optimizing for engagement except the end goal is to get as many followers as possible.
Once an ad is optimized for the ad campaign’s goal, the advertiser chooses if they want an automatic or manual bidding strategy.
Automatic asks the advertiser how much money they are willing to spend on a daily bid and then helps get the most conversions for that bid. This strategy means that each bid could be for a different amount.
Manual allows the advertiser to choose how much they want to spend per bid and lock that dollar amount. This strategy is used for businesses who want to make a specific profit margin per ad dollar spent. The trick to successful marketing lies in analyzing where traffic is coming from and continuing to push that form of promotion. If 90% of traffic is directed through AdWords and only 10% comes from email marketing and social media, it’s most likely a good idea to put more focus on AdWords.
Being able to understand the analytics of your website can have a massive impact on the success of marketing strategies, specifically ad campaigns. Once a website owner understands who their audience is, they can create content that directly speaks to their client’s needs.
In-depth analytical tools like Google Analytics are free and provide a descriptive look into who is visiting a website and in turn, how to create content specifically tailored to create a return of interest. The three types of Instagram ads you can use are:
- Photo – A visual of your product or service with a brief call-to-action underneath. You can add hashtags and text to make your ads more impactful.
- Video – A video, which appears in user’s Instagram feeds. They’re great for driving interest in your products and growing awareness.
- Stories – Multimedia stories that tell how your product or service works. This is great for demonstrating product value or uniqueness.
Another option: Promoting your Instagram posts. Promoting posts is different from advertising. When you promote a post on Instagram (or Facebook), it is shown to your followers and their friends. This can help you grow brand awareness and keep your business fresh in customers’ minds. Or to speak directly to your audience and offer them special promotions and offers.