Are Facebook Ads worth it for your business?
Facebook Ads are a compelling way to promote your business. If they’re used correctly, they can allow you to connect with thousands of potential new customers every day.
However, when it comes to advertising your business online, numerous social networks are available.
With such a broad range of options, it can be hard to know what platforms would be worth it for your business.
So, if you have been wondering if Facebook Ads are worth it, this is a must-read. In the first part of this blog post, we’ll be looking at how advertising on Facebook works as well as its marketing statistics in 2022. This will give us a glimpse of the type of growth Facebook is likely to achieve in the coming years. In the second part of the blog post, we’ll look at various advantages and disadvantages of Facebook Ads. The third and final part of this blog post will be devoted to describing our own experience with Facebook Ads and looking at different ways to measure the success of your Facebook Ads campaign.
Facebook marketing statistics in 2022: where does the platform stand?
Facebook is the largest social network in the world, with 2.91 billion monthly active users and 1.93 billion daily active users globally as of Q1 2022.
Undoubtedly, Facebook Ads are an incredible way to reach your target audience. This social media platform has massive reach, and because 79% of monthly Facebook users are active at least once a day, engagement is high—so it’s a great place to start when you’re trying to get your brand in front of the right people.
Although the social media giant is no stranger to controversy regarding users’ data and privacy, despite its troubles, it continues to grow in popularity as a marketing tool. This is backed up by the fact that there are more than 3 million businesses actively advertising on Facebook.
In fact, in 2022, it was reported that Facebook Ads are expected to grow 15.5% year-overyear due to the increased growth of the e-commerce industry.
If you’re not using Facebook Ads, you might be missing out on a huge opportunity to grow your business! A whopping 50% of consumers want to discover new products through Facebook Stories.
How does advertising on Facebook work?
Facebook Ads are a powerful tool for marketers, but they work differently than other types of advertising. With Facebook Ads, you’re not buying space in a publication or on a billboard. You’re buying access to people who have already indicated they are interested in what you have to offer.
Put simply, the best way to think about Facebook advertising is as an extension of your existing marketing efforts.
The goal of Facebook Ads is to reach people who might already be interested in your business, product or service. This means that there’s no need for you to create awareness before your campaign starts.
Facebook Ads also give you the ability to target people based on information that they’ve shared online — such as where they live, their age and gender, education, job title, interests and consumer behaviour. This allows you to reach people with highly relevant ads who are likely to be interested in what you’re offering.
To get started, the first thing you should do is set up a Facebook Ad account. Then, go to Ads Manager to create a campaign with your desired settings, pictures, and/or videos. During this process, it’s important to keep the best practices and trends you need to follow in 2022 in mind.
Advantages of Facebook Ads
Facebook is a great place to advertise.
There are many advantages to using Facebook ads, including:
Facebook’s audience insights tool is a powerful tool that can help you create more effective Facebook ads. It’s based on the same data that Facebook uses to target ads to you, but it allows you to see it for yourself.
You can get a better idea of who your customers are and what they care about. This will help you create better content that resonates with them, as well as more effective Facebook ads that speak directly to their interests.
You can use past data from your own Facebook page to create more effective ads. For example, if one of your campaigns was successful in reaching women aged 18-24 who like yoga and surfing, you can use those insights when creating new campaigns targeting similar audiences.
Metrics and Performance Tracking.
Facebook Ads provide detailed reporting and analytics on your campaign performance so you know exactly where your money went and how much traffic you generated through each campaign.
Additionally, you can track conversions and use custom audiences by using the Facebook Pixel tool. This way, you’ll know how many sales come from ads and how much revenue they generate for your business!
The biggest advantage of Facebook Ads is the targeting. It’s the most sophisticated targeting platform on the planet.
Facebook Ads can target users based on demographics, interests, behaviours and much more.
You can also target by location, language and device type.
For example, if someone searches for “sunglasses” then they may be interested in buying some new ones so it makes sense for someone who sells sunglasses online to advertise with Facebook Ads when someone searches for this term.
Another cool feature we mentioned above is custom audiences, which allow you to create a custom audience of people who have already shown interest in your brand by liking it or opting in for emails from it.
This saves time and money because you don’t have to spend time building an entirely new audience from scratch each time you run an ad campaign; instead, you can re-engage those who have already shown interest in what you offer.
Custom Call-to-Action Button.
Another advantage of Facebook Ads is that it allows you to use custom call-to-action buttons.
These buttons allow users to click on something specific like a “Shop Now” button or “Sign Up Now” button instead of having them click on an image or link within your ad.
For every campaign, Facebook allows you to set your objective(s), and gives you the following options:
Awareness. When you want to build brand awareness and increase the number of people who know about your business, product or service.
Consideration. The objective is to get people to take the next step towards buying a product or service, such as visiting your website or searching for a product on Google.
Conversions. Once they’ve seen an ad, clicked on it and visited your website, the goal is to get them to do something specific like getting in touch.
Disadvantages of Facebook Ads
Facebook Ads can be a great way to drive traffic to your website, get people to sign up for your email list, or even sell products and services. However, here are some disadvantages of Facebook advertising that you need to be aware of:
Not much organic reach.
While Facebook’s algorithm tends to favour posts with high engagement rates and shares, it still has no way of telling whether an Ad is effective or not.
So, to get on everyone’s screens, you’ll need to spend money.
But in reality, there are many businesses who don’t have the budget for Facebook Ads and would prefer other methods of marketing their business instead.
On that note, it might be useful to read about how the Facebook algorithm works in 2022 and how to make it work for you.
Increased privacy concerns.
People have increased privacy concerns with Facebook, especially after the Cambridge Analytica scandal. They don’t want their personal data in the hands of advertisers or third parties.
This means they may be less likely to engage with your ads or even click on them if they can avoid it.
Facebook is one of the biggest ad platforms in the world, and as such, it has a LOT of competition.
For example, if you want to advertise your e-commerce store and sell a product like a t-shirt, then there are hundreds or thousands of other advertisers who are also trying to sell t-shirts on Facebook at the same time as you are.
This can make it very difficult for your ad to stand out from the crowd.
It’s easy for people to ignore or dismiss your ad if it doesn’t catch their eye. You need to create an eye-catching image and headline that will appeal to your target audience and compel them to click on it.
Similarly, if you don’t have a ton of money to spend on Facebook ads, you might be competing against bigger brands that can afford to pay more per click. In this case, your ad might not be as visible as others.
Our experience with Facebook Ads
At London 303, we use Facebook as a key advertising stream for our partners. We’re creative digital marketers that love its visual components and versatility as much as its more technical aspects such as tracking performance.
If you were to ask us, we’d say Facebook paid media management is a great way to drive more conversions for your business.
So far, we’ve worked with over 50 fast-growing direct to consumer (DTC) brands. One of our most recent clients, Rapport London, had previously tried to advertise on Facebook but saw no success. So what did they do? Set us the target of 50% online revenue growth year-on-year, of course.
And what did we achieve?
- 5.31% CTR in Europe
- £0.02 CPC in Asia
- 8.89:1 return on ad spend (ROAS)
If you’re ready to begin, we start by performing an audit of your Facebook account and market research into what your competitors are doing. From here we build a detailed media plan that includes budgets, campaign objectives, audiences, ad copy, media, and the specific strategies we will use. This plan is approved before going live. Once reviewed by you, we will set up campaigns and start driving conversions!
Ways to measure the success of Facebook Ads
There are several important metrics that you’ll want to monitor when determining the success of your Facebook ad. Here are some of the most important ones:
This is the percentage of people who have seen your ad and then completed the desired action. It’s calculated by dividing the number of conversions by the total number of views or clicks on your ad (depending on what you’re tracking).
Cost per click (CPC)
The cost per click is the amount spent on each click. It is calculated by dividing the total cost by the number of clicks. The CPC is a good way to measure how much money you’re spending and whether or not it’s worth it.
Click-through rates (CTR)
This is the number of people who click on your ad divided by the number of times it was shown. For example, if 10,000 people see your ad and 1,000 clicks on it, then your click-through rate is 10%. The higher this number is, the more effective your ads are at driving engagement with your target audience.
Cost per action
This is the total amount spent on your campaign divided by how many conversions occurred during that time period (i.e., how many people completed an action you specified). It’s a useful metric to use if you have multiple goals for each campaign as it allows you to compare costs across different actions within one campaign.
If you are considering advertising on Facebook, we hope this blog post will give you a better idea of how they work and whether they might be worth it for your business.
While Facebook Ads are not a cure-all or a magic bullet, they can help you promote your business and drive traffic to your website.
What is clear is that Facebook is an incredible resource with many ways of reaching billions of users.
To answer the initial question of whether Facebook Ads are worth it for your business, the answer is simple.
No matter the industry you’re in, Facebook advertising is definitely worth a try.