Facebook Ads are a primary revenue source for many e-Commerce businesses offering products or services. By utilizing this marketing channel many companies were able to score 7-figure revenue.
But, do you know why a business should capitalize on digital advertising as soon as possible?
If not, have a read through this article outlining 6 main reasons why you are losing money by not using Facebook Ads for your business!
1. Your audience is already on Facebook
Over the years Facebook became a sort of official social media platform. If you are not on Facebook you don’t exist to many people. According to Sprout Social, Facebook has an audience of 2.79 billion users. 73% of the users access platform daily and 93% of users log in to Facebook on weekly basis.
People on Facebook use it far beyond its core functions, they gather into groups, like fan pages that are related to their hobby or passion, share content, buy, text, and so on. For you, as a business owner, it is important because it means that your audience not only uses the most popular social platform but also Facebook itself already made notice of their interest and passions and categorized them for better marketing results.
2. Facebook Ads are affordable, predictable, and scalable
When a company decides to start Facebook Ads they can set up the budget of their convenience. There are some guidelines for effective budgets but they cannot be compared to costs of conventional advertising like TV or radio ads. Budget limits can be set so when a campaign or account reaches the trash hold all the campaigns will be stopped. For much more experienced marketers, controlling the budget goes as far as setting bid caps if you know how much do you want to pay the maximum for a certain objective or action.
This type of advertising is also predictable. After only a few tests you know how much you pay for 1000 impressions or what is your conversion and click-through rate. Of course, the first results won’t be most accurate as often after testing there is enough data to see the funnels weak spots and make changes, finally scoring even cheaper results.
One of the numerous benefits of Fb ads is also that they are incredibly scalable. When our campaigns are achieving a good, profitable Return On Ad Spend we are starting to think about how to reach more people who might be interested in our products or services. There are multiple methods to do that but the two most popular are „vertical” and „horizontal” scaling. With vertical scaling we scale by duplicating already working ad sets with a higher budget and with horizontal we find new audiences or countries to reach. (In big simplification so you get the idea) With so many users on Facebook, the sky is the limit when it comes to scaling.
3. They offer insanely detailed targeting options
Let’s assume for the sake of demonstration that you are running a cooking classes business. You live in London and want to find new clients for your upcoming lessons. You already know that most of your audience are women of age 28-45. Now we’ll show you the abilities of Facebook targeting on this example.
You start setting up the first audience. In the beginning, you put in the demographics, so London with a 10 miles range from your dress, women aged 28-45, living in this location (Yes! this is also an option.). But then you start thinking, how I can extract people who would be interested in your services from this big group. You can put in the fan pages they like like „Gordon Ramsey”, cooking programs they watch, „cooking” as a hobby and so on. Then you can even use the group to find related fan pages that are popular within your already created audience. You can also use flex targeting to reach the laser-targeted audience. An example of flex targeting would be targeting interest „Gordon Ramsey” on the top and adding „Must also like: *name of less known, professional cook*” so that you are sure you only reach people who are super interested in cooking. And these targeting options are just the tip of the iceberg. Facebook offers the most detailed targeting options on the internet.
4. You can reach users which already interacted with your business (Retargeting)
In a nutshell, retargeting is reaching people who already interacted with your business in some form but didn’t complete a purchase or signed up for the service. With products worth over 50$/80$ usually, people won’t buy straight away, regardless of the traffic source. Their buying journey is usually, longer and it takes more time and touchpoints to acquire a customer.
With Facebook you get to deliver an ad, tailor-made to the buying stage of the person, setup time frames of retargeting, offer coupons, show testimonials, benefits, and so on.
Let’s look at the example. You have a substantial amount of people who add products to the cart but did not complete the purchase. Now, you can create an audience out of people who added a product to the cart but didn’t purchase in let’s say last 28 days. People in this audience could come to your website from various sources, but if they have Fb, the tracking code will track and put them in this audience. Now for the audience, we will run an ad that shows the use and benefits of the product or service with a 10% discount code. This audience is already familiar with your product/service and brand and they showed interest in what you are offering. Therefore, they will be more likely to make a purchase or sign up for the service and with the lower cost of acquisition.
This usually where most businesses who don’t run Facebook ads lose a ton of money and they could use it as an ability to make the cash register ring.
5. Useful and insightful analytics
Whether we are talking about your page analytics or breaking down a campaign Facebook is definitely a place to go. You track and measure everything from click-trough-rates through a number of people who viewed a product to results rates and even generated engagement.
This is a huge advantage. It gives marketers knowledge on every aspect of the ad and page. Based on that changes can be implemented where needed to increase the revenue ads and page generates.
Let us illustrate this with an example. Let’s say that 50 people viewed the product and only 1 of them added the product to the cart. This might mean that the product description is not selling well-enough, that the add to cart button is not standing out enough, or that the price is too high. Based on that information it is possible and needed to apply changes to further increase the conversion rate and revenue.
6. Leave your competitors behind
Social media and social media advertising, although introduced many years ago is still a fairly new concept to some business owners. Day after day new businesses are joining this space in order to grow their brands. The competition in this space is rising but opportunities are there too. Most of the businesses that fail in digital advertising lack knowledge of tools or marketing.
Are your competitors already using Facebook Ads to generate a new revenue stream?
What’s next?
If you made it to the end we want to thank you for having your attention for those few short minutes. We hope the reasons written in this article gave you inspiration and motivation to discover and establish new revenue streams in the digital. Facebook Ads is worth it and will develop in the upcoming years even more.
If you need any further assistance with developing your business in the digital world, don’t hesitate to contact us. Coffee is on us!
To your success,
Martin Bujacz
Managing Partner
