Let me explain!
If you could go back in time, to the year 2000, you would know that every keyword about your business you can buy on google for $.50 in 10 years will cost $5.00 and in 17 years will cost $12.00.
You would also know what kind of conversion rates you would get, and you would probably open up the floodgates on your google ad budget like a hot craps table at Caesar’s Palace.
Facebook ads are what google ads were 17 years ago. Misunderstood and underpriced.
According to Wikipedia, the majority of Facebook’s revenue comes from advertising and has a lower CTR (Click-through rate) for ads as opposed to other major websites. However, the targeting is simply unparalleled which makes a modest budget go very, very far.
You need to use Facebook differently
The #1 mistake many marketers are faced with revolve around how Facebook ads are targeted. Facebook ads are targeted towards who the user is, not what the user is looking for. Because of this, Facebook ads will typically include specific demographics such as: age, gender, location, and interests just to name a few. Marketers attempt to target groups that tend to be too large and this is not a good practice for obvious reasons such as higher costs. Hypothesize, test, measure, adjust, and you will go far.
The look of your Facebook ad:
The image of your ad is the most important thing so make it count to get as many clicks as possible. Remember that images of higher quality will be more effective. The typography is very important and the easier it is to read, then the more clicks you’re going to get. Bright colors tend to work best as well.
If you are uploading video, you will experience much higher click rates if you put large captions on your videos, so people can read what is being said before the commit to clicking and listening. This seems like a small change, but yields big conversion benefits.
What is going to happen to Facebook ads over the next 5 years?
As the future approaches, Facebook ad spending is continuing to grow at a significant rate. As a matter of fact, ad revenue has increased 59% over year over year from last quarter which is a 45% increase in growth in the third quarter, 2016 alone. They are growing the ad spend from the massive attention they hold. Facebook is able to do this with algorithms that show the user what they will like as opposed to everything; which is always too much.
Cable television is quickly losing its popularity due to the ravenous world appetite for content; and it appears that social media seems to be the replacement. As you can see in the graph below, digital ad spending is trending up and to the right. Hard.
According to Business Insider, on the company’s earnings call, CEO Mark Zuckerberg said that people spend on average more than 50 minutes a day across its suite of apps, excluding WhatsApp. Staggering. A simple takeaway; the attention of the group you’re after is probably there, go get in front of them!