If you are reading this article it is highly likely that you are already aware of advertising on Facebook. If you are a user then you cannot run away from it. It is all over Facebook and especially in your Newsfeed. If you are using Facebook to advertise your business, you are aware of how to analyze the performance of your Facebook ads. To calculate your ROI you need to know just how much each paying customer is costing you. This can be done by analyzing the ads’ performance and conversions. Once you have the cost per customer, it will be easy for you to calculate your ROI and then optimize your budget to get the most out of your dollar.
To calculate the value of your advertising you need to deduct the cost of advertising from your earnings for the conversions. This will give you a clear picture of whether your advertising is cost effective or not. If it is in the negative, then you need to take another look at your advertising strategy and readjust it to give you higher conversions.
How Often Should the Advertisement Appear?
When planning your advertising campaign for Facebook, there are several things that should be kept in mind. One of the major things to decide is how frequently your advertisement is displayed to your audience to get the maximum ROI. This is no easy task and takes a lot of tweaking before you can get it absolutely right. Facebook advertising has a built in feature where you can adjust your ad many times. The lower the frequency is, the lesser number of repetitions. Here comes the conundrum of what should be the ideal number of repetitions. The answer to this question lies in sales and marketing psychology and a puzzle not easy to crack. Too much advertising can be irritating and may put a potential buyer off, and too few would mean that your message doesn’t reach the targeted audience enough times for it to register and to induce the conversion to take place. So when you come to the frequency options, just leave it to Facebook.
Controlling the number of Repetitions for your Advertisement
The process of determining how much is too much is a sensitive task, in this case we also have to consider that too little is slow, time consuming and expensive. Facebook has provided a simpler option for you by taking care of this frequency maze for you. All you have to do is to choose the option “daily unique reach” when it is presented to you while you are on the “optimize for” option menu. Facebook then takes over and utilizes your budget to reach your target audience at least once every day. Facebook looks at your advertising allocation and then makes the best use of it by determining who to show the advertisement within your target. If you want your ad to be displayed more than once, then you need to go through the trouble of testing, formatting, optimizing over and over again till you have everything working right for you and your ROI is optimal.
Controlling the Budget and Reach
When setting your preferences for Facebook advertising, you can determine the amount you are willing to pay. Facebook will ask you to set the amount. If you set the amount too high with the idea in mind that the more people will be able to see your ad, then you are throwing money out as you are paying too much per 1000 repetitions. If you set the budget too low, then you are strapping your campaign with cash and may not be reach the right audience even once. Facebook wants you to spend as much money as you can, so if you set the amount too low it displays your advertisements to audiences that are frequent users of Facebook and too jaded to notice your ads. So you get a lot less conversion. To find the best bid for 1000 shows, you need to take the middle path and experiment a little over a few days to decide what suits your business modal and customers the most.
Controlling Who Sees Your Ads
Facebook is excellent for targeted marketing. You can determine who you want to target your advertising .For instance, you make specialized dog accessories. Your target would be people who have dogs or love dogs. Facebook has extensive information about their users, their age to their likes, dislikes, preferences, hobbies, education and many more. You just need to set the parameters of who your targeted audiences are and you have a set number of people whom you know will be potential clients. In your case it would be people who love dogs, have money to buy your specialized dog accessories, they should be dog owners and devoted to their pets, older women and young adults are good potential customers. So you target them, and then set the parameters for location in your country or even your town to narrow down the list to a smaller more manageable number. Now your advertisement is reaching the exact people whim you are confident about buying your product. Your ROI is high as you are spending less and converting at a higher rate. The click through rate for your advertisements is high.
Things to Bear in Mind
When determining the cost of your “daily unique reach” just bear in mind that it is better to reach all of your audience at least once a day than to reach only a small percentage of sure conversions once a day. Make sure that you have set a baseline for your spending. It is better to go for advertisements that are featured within the news feed as they are more effective than sidebar ads. The Sidebar ads are not limited by the number of repetition rule and they are less noticeableSo keep your focus group small and concise so you can get the most mileage out of your money.