“How to Advertise on Facebook with Paid Advertisements” written and video by Mike Marko.
Are you struggling to get leads and sales for your business? Maybe you’re afraid to run paid ads for your business?
Facebook can be a powerful way to place targeted paid advertisements in front of your ideal customer… that is if you know what you are doing. Otherwise it can seem like you are just placing donations to Facebook with little return.
I know… I have felt that way when I first started with Facebook ads.
That’s why I want to share with you my tips on how to advertise on Facebook with paid advertisements. If you haven’t already checked it out, you should also read my article on How NOT To Get Your Facebook Ads Account Disabled.
How to Advertise on Facebook
In the following video I talk about how to advertise on Facebook with paid ads.
VIDEO: Advertising on Facebook The Right Way
Note that in the above example, I forgot to show that the cost per sale was $25 with an average lifetime customer value of $100. If you could make $4 for every $1 you put into the machine… how much would you put into it? (just an example of what is possible).
Three Ways to Drive Traffic to an Offer
There are three main ways to get traffic to an offer or website. They are:
I use all three methods to get traffic to our websites. What I specifically love about paid advertisements, like Facebook, is that it is scaleable (you can pay more to get a larger reach) and you can get in front of people who may not even know they need you. This is based on knowing your target audience. You solve a problem that they hadn’t thought about or got around to solving yet.
Advantages of Facebook
There are several advantages to Facebook that make it a great marketing platform, such as:
- There are a large number of users on this established social media platform (it’s not going away soon);
- It’s a great advertising platform. Facebook wants you to succeed and spend more advertising dollars;
- The results are scaleable. You can pay more to get even more traffic. So if something is giving you a good return you can continue to expand your traffic (and thus your business).
How Much Should You Allow For Lead Costs
So how much should you spend per lead when doing Facebook ads? Well.. that depends.
It is much better to determine that by approaching it backwards. First you need to determine the lifetime value of a client/customer to your business: or in other words how much money will you make on average from a customer over the lifetime of them being a customer.
Once you know the average lifetime value of the customer you need to determine how well your “system” converts leads into sales. This can range from 0.5% to 4% typically, but will vary depending on your system and your service/products. If you don’t know start with a conservative value of 1%: meaning you need 100 leads to get a sale. If you had a 2% conversion then you need 50 leads to get a sale, etc.
Now you divide the average lifetime value of a customer by the number of leads you need to get a sale. That gives you the average lifetime value of a lead.
The final step is to determine how much advertising you want to spend to make $100. If that is $25 (25% of the desired income), you then multiple the average lifetime value of a lead by the % you just came up with.
Ok… I know I even confused myself.
Let’s do an example:
Lets assume the average lifetime value of a customer is $1000.
And that the sales conversion is 1%, or it takes 100 leads to get a sale. Therefore the average lifetime value of a lead is $10.
If we want to make $4 for every $1 of advertising we put in, then that means we can spend as much as $2.50 per lead.
The Different Elements Of A Facebook Ad
There are several elements to a Facebook ad… and all play a role to either get the attention of the Facebook user or to get the click. Remember, the ultimate goal of a Facebook ad is to get a click and is NOT to get the sale.
We’ll use the following example ad to help walk you through the elements.
The main goal of the image is to grab attention of the viewer. Don’t create strong “click bait” images that are not congruent with the ad itself. You may get the click but not the conversion. Although the point of the ad is to get the click, clicks are not the ultimate goal in any ad: its to get conversions. Clicks do not always mean conversions. And Facebook is clamping down on “click bait” ads so beware.
The image also allows you the opportunity to start branding yourself. You don’t have to do this, but the opportunity is there if you want.
And it helps if the image is congruent with next page (the capture page or sales page, etc). Congruent includes wording, colors, imagery, of course offer, etc. If it isn’t, you’ll may get the clicks but you won’t get the desired result as the viewer things they have been duped and will quickly leave the target page.
Take time on the image because the image will be 80% of the reason why people click the link.
The title needs to grab the attention of the viewer. This is where you put the command.
Caption (Below the Title)
What to expect: the benefit of what you are offering. What’s in it for them.
The display link can be used as a call to action: tell them what to do. This is more effective than actually displaying a link.
We then use the “Learn More” button because it has been shown that the “Learn More” button gets more clicks than other buttons.
The first part of the body should begin with a YES question. That way the audience can start to agree with you and nodding. In the example in the video, we took the “honest” approach and started to address what the viewer is seeing.
After the question, we make sure the viewer is made aware of their problem (often reminding them of their problem).
Then ask a question… and the way our brains are wired it will try to start trying to answer that question. So the question “How do you double your conversions?” makes the viewer think “So how do I double my conversions?”
Then you follow up with how they can get the answer. In this case we specifically tell them that there will be a 90-minute video where they will learn how to double conversions. We even address common objections the target audience may have (like often webinars often being mostly fluff and a waste of time) by relating to them and then addressing this concern by telling them them how this video training is different than other webinars.
The next step we tell them what to expect… that they have to click a link and give their email. And that they won’t find out the information until after they give the email.
Then we build up the excitement by telling the reader that this is the first time this has been given for free.
Finally there is a call to action and the link to click.
Final Thoughts On How To Advertise On Facebook
Facebook can be a powerful platform to market your business. But you need to understand how to run the ads correctly in order to get a good return on your investment. You should also check out my article on how to use Facebook pixels to get more out of your Facebook ads.
If you follow the tips I outlined above on how to advertise on Facebook, you’ll have been success with your paid advertisements. If you want help in running your Facebook ads, feel free to contact me and we can talk about the different options we offer, or use the link below to apply to work with me:
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Article: How to Advertise on Facebook with Paid Advertisements
Also published on Medium.