If you run Facebook ads for your business and you're been charged high, you're definitely fighting a bidding war. But before going deep we need to understand that Facebook is a compelling platform for advertisers for many reasons, which includes powerful targeting options and affordable costs, among others.
Our Facebook ad costs, of course, will vary based on a number of factors, including our audience, industry, goals, and Optimisation settings. However, the expected cost per thousand impressions (CPMs) will vary between $5 and $10 and cost per click (CPC) to come in below $2 or so.
Retargeting are typically in the $0.75 to $1.25 range. These costs are competitive and demands we apply our skills and knowledge to save more cost and make more profit. Here are my tactics:
Advertisers should be as precise with their criteria as possible when specifying audiences.By narrowing your target audience, you can drastically reduce the competition from other biz running ads to a similar audience.
Remember you are in a bidding war with hundreds of other businesses – only target people who you really want to reach. I means you can tailor ads to appeal to people in a specific demographic, geographical area and set of interests. This gives you the best chance of making sales
Look For Audience Overlap
I use the Facebook Audience Overlap tool to see if audiences are overlapping significantly – and, if they are, what I do is to choose the audience that is most relevant to your marketing goals.
If i have some overlaps, I mutually exclude those audiences to avoid bidding against myself.
Check out the Facebook official help link if you want to learn more about audience overlapping.
About Overlapping Audiences
Set up Facebook Pixel
One practice I can't afford not to do is not to set up my Facebook Pixel, which is a few lines of code you insert into your website to track conversions and access data about your clients. It collects in-dept data about your customers.
What they're interested in? What things have they bought recently?
With Facebook pixel, you can't only re-target people who have gone on your website, you can even target down to what actions they've taken, such as people who added to their cart but never completed their purchase
It also help track which ads are performing best and yield more sales, which means you can really start putting money where it counts.
Test Different Creatives
I like testing my Facebook creative to see which executions resonate most. Even if you know your audience inside out, tiny nuances in the image chosen, the copy and the call to action can make a large difference in the results over time.
By using different combinations of text and images, I'll be able to spot trends in the adverts' performances. I take the best elements from the better performing ads and drop the worst. This data-driven ad crafting is the best way to get the best value from your ads budget.
It is fascinating to know how just changing the image followed by headlines and ad copy can have a dramatic effect on the costs of your ads. Even small improvements in click-through rate and conversion rate can make a huge difference to ROI in the long term.
Re-Market your Offers
I love to re-market our ads to audiences who are able to reach the checkout page of our website. I try to make our ad pops up to remind them what they’re missing and in some cases offer them discount if they make an immediate purchase.
Refresh your Creatives
One of the most common thing I do with ads is to monitor it frequency of performance while it's still converting.
The truth is that, ad demands to be refreshed or the audience get tired of seeing your ad. They get bored of it when it become too familiar on their timeline. If you don't refresh the creative, the creative performance drop off and might increase the cost per click by some percentage.
I believe if you put all this hints into mind when running your own campaign, you can reduce your advertising cost on Facebook and make more profit from your business.