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  • How To Run A Profitable Facebook Ads Campaign In 2020

    So I have talked about Facebook a lot and pointed out how if you run a business, any kind of business (with products permitted by Facebook to advertise on the platform),you really MUST consider advertising on the platform.

    My digital marketing firm has and continues to consult for tens of firms. Facebook is a place we tap for traffic, sales and profits. We have sold all sorts on Facebook - from sports odds to trainings, cars, spas, clothing and so on. So how do you make certain that you can make Facebook turn a profit?
    Facebooks Ads
    By understanding how the platform works.

    First thing is...
     

    1. Read the advertising policies.
     

    It's amazing how many people try to advertise there who don't read it. Go to web.facebook.com/policies/ads 

    Study it with a fine tooth comb. There products you simply cannot advertise on Facebook, there are some that are restricted (you can advertise them if you comply with certain conditions).

    Facebook also wants you to say and not say things in a certain way. You'll see it all there 

     

    2. Now if your product/service passes muster, the next thing is PEOPLE MUST WANT WHAT YOU'RE TRYING TO SELL THEM.

     

    If I had a penny for each time I saw people trying to sell a product no one is interested in on Facebook, I'd be richer than @BillGates. Just kidding🙂.

    Point is It doesn't matter how good a sales person you are, if people don't want your thing,you'll only be wasting your time. So be sure people are already buying the sort of thing you want to sell or at least clamoring for something like it.

    Cool? Alright.
     

    3.  Facebook advertising is NOT COMPLICATED.
     

    You simply need to know certain metrics to determine if you're making money or not. Here are the metrics you need to understand.

    1. Ad Budget:
    2. Number of Clicks Received
    3. Cost per Click
    4. Number of Results received
    5. Cost per Result
    6. Conversion Rate

    There are the 6 things you need to know.

    Now depending on the industry, business model or product/service, the numbers will be different. Let me explain what these metrics mean. 

    1. Ad Budget: This is how much you're budgeting to spend for your advert campaign. You can spend it all in one day or stretch it over a number of days or weeks or months.

    2. Number of Clicks Received: This is the number of clicks your adverts received throughout the duration of the campaign.

    3. Cost per Click: This is your total budget divided by the number of clicks the campaign received (in other words, 1 above divided by 2 above)

    4. Number of results received: The results you measure depends on what your goal for the advert campaign is. For some, they just want to get people to view something or sign up for free or buy something. For us, we want people to FIRST signup, so we can collect their contact email and phone number, then we then want them to buy.

    5. Cost per Result: This is the amount each result cost you. You get this by dividing the total budget by the number of results you received. (in others words, 1 above divided by 4 above)

    6. Conversion Rate: This is the percentage of people (from 5 above) who eventually BUY something from you. Your aim is to have people BUY something! 

    Now, let's use some numbers to illustrate these 6 metrics.

    Let's say you run a business plan writing service, my friend @TamaraPosibi does this and she's brilliant. (if you need this service, contact her). So say she has just $100 to spend on an advertising campaign on Facebook. 

     So her (1) AD Budget is $100.

    She can spend it all on one day, or spread it over 2 days ($50 daily), 5 days ($20 daily) or 10 days ($10 daily). If it's your first time running that ad, I'd suggest you do $20 each day for 5 days as the Facebook AI engine usually takes around 3 days to figure out the best people to show your advert to (based on the targeting parameters you've set when creating the advert) so you can get the highest possible ROI from it.

    Okay onward.

    Let's say the campaign gets 400 clicks, this is our (2) Number of clicks received. So whats our cost per click?

    Our (3) Cost per click is $0.25 each. So every click the advert got cost us 25 cents. In naira and kobo numbers, this translates to:

    (1) Ad budget: $100/N37000 (N370 per $)
    (2) Number of Clicks: 400
    (3) Cost per click: $100 ÷ 400 = $0.25 or N92.50 

    Alright, so every click on the advert cost us =N=92. 50 kobo.

    So remember we wanted people to sign up and give us their contact details FIRST. Why? Because that way we have a chance to market to them again and again and again. We can bribe them by offering them something in exchange for these details. if you're in ecommerce, it might be a 20% off discount coupon if they give you their details, then you tell them they can use that coupon anytime within the next 3/5/7 days to order.

    @TamaraPosibi might offer new business owners a checklist titled "7 Things A Business Plan Must Have If You Want To Ever Raise Capital or Win A Grant With It".

    So it's just 1-3 pages explaining what those 7 things are. So once they give us these details, we want to find out how many of them gave us these details (name, email and phone number we asked for.

    That is our (4) Number of Results Received. Here our results is to get people to give us their contact details so they can get what we promised them in exchange for same). So going with our example, lets assume 50% of that 400 people who clicked on the advert gave us the details we asked for. So we have 200 people.

    Now we have:

    (1) Ad budget: $100/N37000 (N370 per $)
    (2) Number of Clicks: 400
    (3) Cost per click: $100 ÷ 400 = $0.25 or N92.50
    (4) Number of Results Received: 50% of (2) above or 200

    Next we want to know our (5) Cost Per Result.

    To get this figure, we divide our total ad budget cost which is $100 or =N=37,000 by number of results received which is 200. So in this case it is: $100 ÷ 200 = $0.50 or N185. So each signup costs us =N=185. So we spent =N=37,000 and got 200 people to signup at the cost of =N=185 each.

    Next is how many people now go ahead and buy what we're selling. Remember we're still using @TamaraPosibi's business plan writing service as an example. Lets say out of those 200 people who download her checklist, only 1% of them buy. This means that 2 people eventually buy. That is 200 x 1/100. Now this now boils down to mean she spent $100/=N=37,000 and 2 people bought.

    Whether it is profitable or not depends on how much she is charging for her service. I don't know how much she charges, but let's say it's =N=150,000 per written plan. This means she will earn =N=300,00 from those 2 people buying the service netting her a profit of =N=263,000 or a 610% return on investment.

    I don't know about you but those are darn good numbers. Now these number assume that all things are equal. It assumes that the ad attracts those numbers of clicks, signups and conversion rates. Sometimes they will other times they won't but to have a chance of the numbers holding steady you need to learn how to do several things.

    You need to:

    1. know how to choose the targeting options for your ads like a laser beam so it's shown to only those who are most likely to be interested in them.

    2. know how to write adverts that make people STOP scrolling, READ it, and then CLICK on it.

    3. know how to use the right images and the right advert options to choose from the many options on the Facebook platform, because it differs from business to business and from product/service to product/service.

    4. You also need to know how to word your ads so they dont trigger Facebook to ban you because they can be a royal pain in the ass.

    And 

    5. in case you're banned (like I said the ad people at Facebook act like entitled prima donnas sometimes), you need to know exactly what to say, and who to say it to so you can get unbanned quick and in record time.

    Blessings. 🙏🏾 

    Author

    Updated on 11:48-pm December 20,2019


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    Tags: Facebook Ad Facebook Ads Campaign

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