How to manage your Facebook ad costs
Facebook is no longer just a social sharing platform. It has evolved into a highly important marketing tool for businesses. Businesses are now able to target highly engaging ads to tailored audiences to build brand awareness, boost customer engagement and drive conversions.
When advertising on any platform, it’s important for businesses to make sure they’re receiving value on their investment. The Facebook advertising platform works like an auction house, where you bid on clicks or impressions, meaning prices can fluctuate frequently. This can make ad cost management a little tricky.
Ad costs depend on many variables, including your industry, target audience, the time of the year and Facebook’s business priorities. Considering these variables, here are four ways to help lower your Facebook ad costs.
Select your audience
Aside from your ad objectives, the first thing you need to consider when advertising on Facebook is your target audience. Who would you like to target? How old are they? What are their interests? Facebook’s ad platform allows advertisers to use these demographics to target the ideal audience. Depending on how popular your audience is among competing advertisers, the cost of your ad may rise and fall. Like in any marketplace, if there is high demand, prices will increase and if there is low demand, prices will decrease.
Choose the right time
In order to choose the optimal campaign time to keep your facebook ad costs down, it’s important to be aware of the times that competing advertisers will run ads. Beware that competing advertisers are not just companies similar to your own. Your target audience may have varying interests, some of which may be targeted by vastly different companies to your own.
Depending on your audience, avoiding peak advertising times may be a good place to start to reduce your ad costs. The weeks leading up to Christmas, for example, are a very popular time for food retailers, giftwares and retail stores to advertise. Running an ad during this time is likely to be more expensive than during other times in the year.
Make your ad relevant
If your ads are highly relevant, your ad cost will be lower. Your relevance score is determined by how well suited your ad is to your audience. During an ad campaign your relevance score may rise and fall depending on how people interact with the ad. If the ad has a healthy click through rate, the relevance score will rise. If people report a negative experience with your ad by clicking “I don’t want to see this”, the relevance score will fall.
Pick a suitable ad type
There are several different ad types available on Facebook and depending on demand, each is priced differently. The ad type that you pick for your campaign should depend on your ad objectives and the online behaviours of your target audience. If you would like to boost engagement for your company’s Facebook page, video advertisements are highly engaging. If you would like to drive traffic to your company website, a carousel ad might be more suitable.
Getting the most from Facebook advertising requires continual tweaking and improving. The goal is to understand audience behaviours better with each campaign and tailor your campaigns accordingly. Once you learn which methods work, and which don’t, it will help you finetune your advertising strategy and reduce your ad costs.
If you would like help running your own Facebook ad campaign, get in touch with Green Door Co today.