Coming into this post, you may be someone looking for answers about your marketing campaign. Maybe by now, you’re on the fence and still thinking it over; whether or not Facebook Ads will give your company a boost in revenue.
One thing is for certain: Facebook Ads are definitely worth the money. Keep reading if you want a clearer picture of how.
Before you take a deep dive on the answer, let’s get a few terms clear first. These are terms that you should come to familiarize yourself with, since you’ll be encountering them a lot in online advertising.
- Cost Per Click (CPC)
CPC refers to the measurement of how much the advertiser (in this case, you and your company) are paying the publisher (in this case, Facebook) every time your ad is clicked on their website.
This is the baseline for almost all advertising payments and transactions between the advertisers and the publishers.
- Cost Per Conversion (CPCon)
CPCon, despite sounding quite similar to CPC, refers to a completely different thing. It’s an estimate of how much it costs to get an actual customer out of the prospects that click on your ad—this is what’s called a conversion!
Let’s face it—not every person who’ll click on your ad or visit your website is going to be a surefire customer! As such, the CPC and CPCon will always reflect different numbers and rates.
- Return on Ad Spend (ROAS)
ROAS is a measurement, for your company, that represents an estimate of how much earnings you’re making out of your entire advertisement campaign.
It’s a comparison between how much you spend on advertisements and marketing, against how much you’re earning as a result of them. This number is an important measurement of the success of your marketing!
How Facebook Ads Work
Now, you may be wondering how Facebook Ads work. That’s only natural! Before getting into such an important transaction, you should get an idea of how your publisher will even work with your campaign.
The unique nature of Facebook, as such a widespread social media platform, gives it a tremendous advantage as a marketing tool.
Consider the fact that most Facebook users have on their profiles a complete profile sheet that contains all of their demographic information. Now, think about just how many users there are on Facebook—it’s almost 1/5th of the entire world’s population!
In fact, when you’re auctioning your ads for Facebook, you’re given the capability to target a specific demographic—there are tools that allow you to specify between age, location, gender, education, even interests!
Especially since Facebook has an algorithm that caters specialized content to its users, it becomes an effective tool in marketing that makes the process targeted and secure.
How much does Facebook Ads Cost?
The cost for a Facebook-driven marketing campaign will vary depending on the market you’re working with, who you’re advertising for, and the product you’re selling. With that being said, there are still studies that’ll give you a good idea—a rough estimate—of how much you should be expecting!
Typically, you should be looking at a grand average of $0.97 CPC. To give you an idea, Facebook ads are rated to be marginally cheaper than most other ad costs!
Couple that with the 70% higher conversion rate, and you’ve got a hard bargain on your hands!
Ultimately, as many would agree with me, the best thing about Facebook ads can’t be found when you look at the CPC alone.
What Makes Facebook Ads so Effective?
Facebook Ads are most definitely effective—the numbers don’t lie. But by now, you may be wondering why. If you’re still on the fence about whether or not to integrate Facebook into your advertising campaign, consider these two simple reasons.
- Facebook has an unbelievably large pool of potential prospects.
An estimated 1.5 billion people are registered to Facebook. It’s a simple idea, right? The bigger the size of the audience you’re working with, the better your chances of finding prospective customers.
- Facebook’s algorithm targets its ads based on people’s interests.
Most importantly, Facebook employs a system that targets ads on its users based on their profile and the things they’re interested in—both information that’s readily available on their database.
Because of this, you get two benefits: not only is there a bigger pool of potential customers to reach out to, but Facebook will do the magic of reaching out to the most probable prospects for you!