How To Optimise Facebook Ad Spend for Maximum ROI
With over 3 billion users, you can find almost everyone on Facebook. Such a vast pool of people offers unique opportunities for online marketing-no wonder more and more marketers are interested in Facebook ad management.
But here comes a challenge: how do you target high-quality leads to optimise ROI? Should you rely on Facebook affiliate marketing or harness the power of Facebook algorithms and leverage organic performance marketing strategies? Do paid ads guarantee conversions?
Read on to find out how to run Facebook ads efficiently.
How Much Do Facebook Ads Cost Per Month?
The pricing of Facebook advertisements is not a constant figure as it varies depending on the demographics of the audience being targeted, the duration over which the campaign is run for, the location of the ad on the screen as well as the level of competition. Each model of pricing, on the other hand, targets and achieves some specific campaign purpose and outcome.
Here is how much you will pay for Facebook ads:
Pricing model | Price range |
Cost per Click (CPC) | $0.26 – $0.30 per click |
Cost per 1,000 Impressions (CPM) | $1.01 – $3.00 per 1K impressions |
Cost per Lead (CPL) | $5.83 per lead |
Cost per Download (CPD) | $0.54 per download |
Cost per Engagement (CPE) | $0.01 – $0.02 per like, comment, or share |
Pay per Call | $1 to $15 per call |
Average Monthly Cost | $1 – $500 per month |
Average Weekly Cost | $25 – $125 per week |
These numbers can vary depending on industry, ad placement, market target, and other pricing factors. If you decide to run Facebook ads, be ready to deal with a slightly altered price range.
Source: WebFX
Here’s a breakdown of what each pricing model means:
Cost per Click (CPC): this model charges advertisers when someone clicks on their ad. It’s ideal for campaigns that drive traffic to a website, landing page, or specific offer. If your primary objective is to generate direct responses or visits, CPC is the go-to choice.
Cost per Thousand Impressions (CPM): advertisers pay based on the number of times their ad is shown, regardless of whether it’s clicked. This is useful for awareness campaigns where the goal is to increase the visibility of the brand or product. The focus here is on getting the ad in front of as many people as possible.
Cost per Lead (CPL): refers to the cost associated with acquiring a lead, such as someone filling out a form or subscribing to a service. This model benefits businesses looking to capture qualified leads and build relationships with potential customers.
Cost per Download (CPD): this pricing model is tailored for campaigns promoting mobile apps or digital product downloads. Advertisers only pay when users download their app or content, making it effective for app developers or businesses with downloadable offerings.
Cost per Engagement (CPE): advertisers are charged for each interaction their audience has with the ad, such as likes, comments, shares, or other forms of social engagement. It’s often used when the goal is to boost social proof and increase user interaction with the ad content.
Pay-per-call (PPC): advertisers pay for phone calls generated by ads. Instead of paying for clicks or impressions, you’re only charged when someone calls your business directly from the ad. Pay-per-call marketing is ideal for companies that aim to drive direct, high-intent leads, like those in healthcare, legal, or home services. These niches can see higher costs per call, sometimes even reaching $30 or more.
How To Create Facebook Ads Campaigns
One of the most effective tools marketers use to set up and manage Facebook ads is Facebook Ads Manager. However, you can use the tool only if you start a Facebook business page; launching an ad campaign from a personal page is impossible.
Here are the steps to follow:
- Go to Facebook Ad Manager and start a new campaign
- Select a campaign objective: brand awareness, lead generation, reach, conversions, etc.
- Choose a budget option and set up a launch day
- Define the target audience
- Create a Facebook ad
- Perform data analytics
7 Ways How to Maximize ROI with Effective Facebook Ads
Discuss practical solutions to optimise your business ROI by launching Facebook ad campaigns. From getting more calls from Facebook call ads to re-engaging customers, the Facebook audience is a great marketing source that can fill your conversion funnel to the brim.
1. Understand Your Audience
It is crucial to analyse your demographics to better understand your customers. Facebook ads’ ROI increases when you deliver your message to potential customers who display interest in your product (for example, if they have visited your product web page before).
You should analyse and develop a detailed description of your buyer’s persona at this stage.
Here are some factors to consider:
- Age group
- Lifestyle
- Interests
- Online behaviour
2. Make Your Landing Pages Stand Out
Even the most engaging Facebook ads only boost your ROI if your landing page is alive. Take a close look at how compelling your Facebook page is. You don’t want your leads to close your product page soon after visiting it.
In most cases, we talk about underdeveloped pages flooded with irrelevant information. Not only does it make potential buyers close the page, but it also makes them less likely to click on your Facebook ad again. Therefore, update the landing pages regularly, make them look great on mobile, and add CTAs at the points of maximum value.
3. Tell a Brand Story
Storytelling has always fascinated humans. A compelling story makes people connect with the ideas promoted. That is why we can observe better ad performance of the brands that harness the power of storytelling.
Stories make customers build emotional connections with the product. As a result, they are eager to know more about your products and services.
4. Monitor Your Ad Performance
The best way to manage Facebook ads and optimise your ROI is to keep track of all possible metrics. It allows you to separate effective Facebook ads from mere good ones. You can conduct detailed data analytics with the help of various performance marketing software tools.
Using a reliable advertising optimiser will help you track conversion rates and the income each Facebook ad generates. Don’t shy away from software solutions that can improve marketing strategies and boost your ROI.
5. Make Use of A/B Testing
Embrace the power of innovation. The best way to launch a successful Facebook ads campaign is to experiment with the ad format, layout, and multimedia.
But how can you know that these experiments are successful?
Testing is here to help.
Source: Phonexa
Here is how to create Facebook ads A/B testing using Facebook Ads Manager Toolbar:
- Choose published campaigns to run an A/B test on and click on “A/B Test”
- Move to the setup screen
- Determine criteria for selecting the winner and finish A/B test setup
- Now, you can see the testing results in the Experiments section
6. Implement Video Ads on Facebook
If you are not launching Facebook video ads, you miss an ample opportunity to improve your business’ ROI. Regardless of the recent change in algorithm policies, video ads remain powerful marketing tools in the Facebook feed. Video ads use Facebook’s best practices to catch customers’ attention and generate more traffic.
Video dominates the social media segment, so keeping up with the trend is wise. In addition, videos improve ad performance, conversion rates, and ROI.
Facebook’s ads management requires videos to preserve a specific structure unique to the platform.
Here are more tips you can benefit from:
- Emphasise the video’s initial 3-4 seconds to make a user stop scrolling.
- Keep in mind that most people use Facebook without sound on their devices. Hence, you should develop content that is catchy even without sound.
- Create several variations of the video and test their impact to find genuinely effective Facebook ads.
7. Beware of Ad Frequency
The chances of effectively targeting your audience if they see your ad once are not high. No one can give the exact number of times a user should interact with your ad to finalise the purchase, so it is essential to invest in ad display. Some ad performance analytics estimate that users should see an ad at least three times to remember it.
On the other hand, it is crucial to preserve a balance since you don’t want to spam your target audience with repetitive ads. Experiment, test, and analyse to determine the display frequency that works best.
8. Retarget Potential Customers
Successful Facebook ads management uses retargeting as an essential tool to optimise ROI. Many potential customers interact with your ad but don’t proceed with the following steps, requiring further nurturing.
Making the customer come back is an excellent advertising optimiser. One efficient way is to use
Facebook Retargeting and here’s how it works:
An advertiser installs a Facebook Pixel on their website, a piece of code that tracks user on-site behaviour like page visits, product views, form submissions, and other actions. Using these data, advertisers can create custom campaigns for various audiences.
On a bigger scale, you can implement retargeting strategies for all your marketing channels. For example, if the user is inactive on Facebook but shows email engagement, you can remind them of your Facebook page – or just do nothing so you don’t distract them in their journey.
Conclusion
Last but not least, make sure that Facebook advertising isn’t isolated from the rest of your marketing endeavours. Whether you also utilise email, referral, SEO, referral, affiliate marketing, or generate users via blogging, coordinate these endeavours with your Facebook ads.
A typical customer journey involves switching between marketing channels on the way to making a purchase. It’s natural that potential clients expect a smooth transition without unnecessary steps and diversions. A comprehensive marketing strategy is a must if you want to excel in the ever-toughening digital marketing landscape.
You read a lot. We like that
Want to take your online business to the next level? Get the tips and insights that matter.