Return on investment is something which the investors would always want to get against any investments they make. Advertising on Facebook is no different. There are different ways you can get excellent ROI on Facebook ads.
Advertising on Facebook needs a good amount of investment, and there are different ways of paying a platform to publish your ad. Here are the details about how a Facebook Ad works and how you can pay for it. Later you can go through the ways for decreasing your CPC rates.
How Do Facebook Ads Work?
Facebook ads, like most other paid online advertising, works based on Pay-per-click. There are multiple formats of ads that you can publish on Facebook. Unlike the ads on Google, you can add videos and images on Facebook ads.
Adding experiences and collections can be easier for the Facebook ads. Due to the conveniences related to the ads of Facebook, more advertisers are attracted towards the Facebook ads.
Payment Structures of Facebook Ads
The ad billing on Facebook can take place in different ways but it occurs with respect to 2 things: impressions and bids. The auction system is present and impressions play a vital role in determining the price of the ad.
Once the total number of clicks and impressions are counted, your bill on the Facebook ad is made. But there are a couple of settings concerned with payment in the case of Facebook ads. They are:
Manual Payment: In case of manual payment, the advertiser has to create an account and drop some money in it. Facebook deducts money as per the rates at which the ads run. In the case of manual payment for ads, there will be no threshold on the billing.
Automatic payment: The concept of billing threshold is present in the case of automatic payment for the Facebook ads. No matter the structure of payment, there will be a threshold up to which the billing is generated as your ad performs on the social networking site. Once it reaches the threshold point, you have to pay the amount. If you fail to pay, your ad will stop. The best way to pay Facebook after the threshold is reached is via your debit and credit card.
Besides all these, it is very important to make sure that all the dues are cleared well in advance or you might lose your account abruptly.
Decreasing Facebook Ads CPC
There are multiple ways to lower the CPC (Cost Per Click) of Facebook ads. Proper optimization can help you to improve the level of profit. Here are the five best practices you can follow:
1. Increase focus on CTR
The full form of CTR is Click-Through-Rate, and a boost in it can decrease the CPC of the Facebook Ad. It is also connected to the Relevance Score.
As an advertiser, you should always add a CTA button to your ad and make it aesthetically strong. You should always add prominent images and headlines. Moreover, all the information can be added in random fonts. Make sure the fonts complement the mood of the ad.
Colors in the Facebook ads are yet another crucial thing that you need to add. You can choose the ad themes in such a manner that it complements the color theme of your business logo or the company.
Making an ad aesthetically pleasing can boost the CTR rate in all accord and bring down the CPC rate. You may consult an ad maker for the same.
2. Gain Knowledge About Relevant Score
The relevant score varies from 1 to 10. It is the determining number that shows the level of performance of the ad. Higher relevance scores can bring down the rate of CPC. As an advertiser, your primary aim would be to ensure your relevance score reaches 8 and above.
The fluctuation of the relevance score depends on the feedback of the ad on Facebook. You should check if there are more positive interactions for your ad. In the case of Facebook ads, you can only get a relevance score after your ad is saved more than 500 times.
Accessing the relevance score is another important task you need to do as an advertiser. Here are the steps to do it:
- Access the Ad manager on Facebook
- Open the tab named ‘Ads’
- Go through the list of ads you have already launched
- Check the relevance score in the adjacent boxes
Some ways of boosting the relevant sore are given here in detail.
Specific targeting: You should always target your audience specifically. This can help your audience to create more positive interactions.
Try matching the preference of the audience: As an advertiser, you must know the preference of the audience. Consult with the ad maker and upload only such pictures and messages with which you expect your audience to relate.
Avoid publishing a single ad for a long time: You should not publish the same ad on Facebook for a prolonged period of time. It diminishes the credibility of the ad. If you are serious about investing in paid advertising on a social networking site like Facebook, consider refreshing your ads in timely intervals.
No offensive content should be present: No ads should contain any offensive content. You should also check that no sarcastic comments are present in the ad.
Follow mixed targeting: As Facebook ads give you independence in ad targeting, you can follow mixed targeting. The mixed targeting is solely based on ads catering to different sets of the audience with different behavior and interests. This widens the reach and as a result, you cater to more audiences.
3. Audience overlap needs to be restricted
The audience overlap needs to be restricted while the Facebook ad campaign is on. If the overlap does not happen, positive feedback on the ads can occur. You should not spend money to show the same ad to multiple sets of audiences.
A good observation of the Ad manager can help you understand if you are presenting multiple ads to the same audience. In such cases, you would need to exclude the set of audiences manually. As an advertiser and a businessperson, you should always check the audience and restrict them to see only one ad.
4. Conversion Tracking and retargeting is crucial
Proper conversion tracking can help you generate more revenue from the Facebook ads. As a result, you can shift to a profitable situation faster. An experienced marketing person can execute proper conversion tracking easily if he/she has prior knowledge.
You can suggest the marketing executive use Facebook Pixel for tracking the rate of conversion. On understanding the rate of conversion, retargeting the audience with your Facebook ads will become easier. Check the following things if you are up for the retargeting:
- Website Traffic Audience
- Customer File Audience
5. Targeting Specific Audience through Campaigns
Targeting specific audiences can be done by running multiple campaigns of the same audience interests, but when it comes to a bidding war, it is a bold thing to do. As mentioned earlier, you must never settle for people who might turn out to be casual leads.
To run an online business is better to play smart than hard. First, execute the free techniques to ensure your business’ social media exposure. But if you have already done that and you are ready to invest in Facebook ads, these tips can help you save more in the total process and provide you with a chance of investing your savings on making engaging content.