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I have had clients tell me they are skeptical of advertising on Facebook for business because after all, if people want to buy something do they go Facebook? No. They go to Google (most of the time) or their favorite search engine and search for what they want to buy. If you follow this line of thinking, then you are missing the point. It would be like saying advertising a car on a prime time TV show about cops won't work because people watching shows about cops don't want cars. Advertising is about creating demand. The beauty and the difference about advertising on Facebook is that you can target a very specific demographic if you want to. The growth of use of Facebook is almost staggering. With over 71% of the U.S. population on Facebook and over 50% of those people logging on every day, Facebook as a tool to get to your target audience cannot be ignored. And if you think that businesses really don't use Facebook, well that's not true either. Over 65% of companies report acquiring customers through Facebook. So, how does Facebook advertising work? It's really quite simple. Let me start by saying I am talking about Facebook ads, not a sponsored story. I'll discuss sponsored stories in another article. So, to get started with an ad, you need to think about who you are targeting and why. You only have 135 characters to convey your message (ad copy), so like most advertising it has to be concise and it has to contain a call to action. What do you want the reader to know and what do you want them to do? Once you have your ad copy, you can add a logo or picture and target your ad to land on your welcome or landing page, another page such as your wall, or even a special page you create just for the ad. As a hint, logos don't work as well as pictures because they don't catch people's attention. You want the picture to be related to you business, but make it fun and eye catching. The next step is to narrow the ad placement down by demographic targets. This is the really powerful part of advertising on Facebook. All that information that people put into their Facebook profile, whether it's public or private, is leveraged by Facebook for ad placement. It's really a good thing for consumers and businesses. Consumers are going to see ads, so why not show them ads that might be more applicable to them. And as a business, the conversion rates once an ad is clicked can be improved because you control the demographic that sees the ad. Specifically by selecting a demographic, you are controlling who the ad will be displayed for. Targeting your ad to your demographic will increase the effectiveness of the results because the people who it is displayed to are the ones to which it's most applicable. What demographics can you specify for Facebook ads?
Location: everywhere, state, city, or zip code(s) Age: you can choose all or you can select a range and specify it must be an exact match to your range Gender: I think this one is self-explanatory Category of Interest: this can be specific or broad, but this is an interest that someone has specifically listed in their profile Connections: people who are already your fans, people who are not fans, or everyone Advanced - if you click on this, additional choices come up: interested in (men/women), relationship (single, married, etc), languages, education level, work place
A useful feature available while you are creating your ad is the ability to see how your targeting effects your estimated reach. As you enter a demographic target, such as male only, Facebook displays the estimated reach with that demographic targeted and of course the number goes down as you narrow down your demographic further. How much does an ad on Facebook cost? The Facebook pricing model is primarily based on cost per click (CPC) although you can choose cost per impression (CPM). With CPC, you only pay if someone actually clicks on your ad. With CPM, you pay for every 1000 impressions which is simply your ad being displayed whether or not any action is taken. Once you select all your demographics, Facebook recommends how much you should bid for each click or 1000 impressions. The more you pay, the more likely you are that your ad will be displayed however that doesn't mean you should bid high until you see how the ad performs. The amount you set is the maximum you will pay, it could be less. Additional information you specify is your dollar limit per day or dollar limit on the ad campaign, the duration you want the ad to run, and the hours of the day you want the ad to run. So to answer the question of how much it will cost, it depends on your demographic target, how much you bid, and how long you run the ad, but you absolutely have control on the total amount by setting a lifetime total or daily total. Typically you can expect that Facebook ads will cost a lot less than the equivalent keyword ads in Google. Facebook also provides a number of reports so you see how your ads performed and what you have paid. The Advertising Performance report includes statistics like impressions, clicks, click through rate (CTR), and spend. Of course you can also see if your likes have increased or if you provide a Facebook only coupon that is the target of the ad, you can track that on your website. A critical step in advertising is to make you test different ads to see which provide you the best performance, even if that is just switching out a picture or trying slightly different wording. Advertising on Facebook for business can be very effective due to the targeted demographics and it can be cost effective as well. Just remember that like all advertising you need to be creative to catch people's attention and you need to monitor performance and tweak your ads to optimize your marketing budget.
Gwynne Wade is a Social Media Practitioner who helps small and mid-sized businesses and their brands grow through social media: Facebook, Twitter, LinkedIn, local website optimization, mobile marketing, and blog marketing. My website and blog provide social media tips, especially for small and mid-sized businesses including Facebook How To for Business. Please go to my site to sign up for a FREE 30 minute consultation: http://creativeanglemarketing.com Like me to follow me on Facebook: http://www.facebook.com/pages/Creative-AngleMarketing/217557644962513?sk=app_190322544333196
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