4 Facebook Ad Tips to Improve ROI and Profit
In earlier days, Facebook was just a way to connect with your friends, families, and colleagues. However, the situation has now changed completely.
Facebook is now also a wonderful online marketing platform, and many professional social media marketers, digital marketers, and online entrepreneurs are successfully using Facebook to promote their products and services.
There are now more than 2 million active advertisers on Facebook. And with Facebook knowing almost everything about everyone of the 1.5 billion users on the platform, e.g. — their preferences, likes, dislikes, behaviors, recent activities, and purchasing patterns, this gives marketers a tremendous opportunity to leverage Facebook to reach their target market and run successful ad campaigns.
Having said that, it is not always this easy.
If your campaigns are failing, you must be doing something wrong. In this article, I’m going to share 4 tips to improve your ROI, profits, and overall Facebook campaigns.
Let’s start with the biggest one.
Tip #1: Audience Targeting and CTR
You know why so many digital marketers prefer Facebook over other platforms? And how Facebook is so different than all the other social media networks?
This is because Facebook offers the most extensive way to target your audience. Moreover, if your ad campaigns are failing, it is most likely because you are failing to target your audience in the right way.
Why does it matter?
It matters because if you target the wrong group of audience and constantly show your ads to them, they aren’t going to buy anything from you. However, as a result of constantly running your campaigns, you may run out of your marketing budget.
In order to improve your ROI and profits, you need to be able to identify when to stop running your ads or tweak them for better targeting.
The tip is to focus on the CTR (Click-Through Rate).
If your ad targeting is poor, so will CTR. And a poor CTR leads to higher costs with minimum profits, which eventually translates into a poor and unsuccessful Facebook campaign.
Keep an eye on the CTR, and take necessary steps if it isn’t showing any positive signs.
Tip #2: Create Buyer Personas
I may sound like a broken record here, but I’m telling you this because it’s important.
Buyer personas are semi-fictional representations of your target audience and potential customers. By creating them as accurately as you possibly can, you give yourself a much better chance to target the right people.
Moreover, creating buyer personas also let you know almost everything that you should know about your target audience. This helps you make better and more informed decisions in the future.
For example, buyer personas help you identify:
- The demographics of your target audience: their age, gender, occupation, job titles, etc.
- Their routines and daily lives
- Their likes, dislikes, and preferences
Once if you have created the necessary buyer personas, you will be able to use that information while creating Facebook ads. See the following image for an example.
Remember that targeting the right people should be your #1 priority. Just by doing that, you can easily turn a failing Facebook campaign into a highly profitable one.
And if, like most other people, you believe that buyer personas are just a waste of time, think again! Zappos use them to manage their $10 million ad spending. Why would they continue using buyer personas if they are just a waste of time?
Tip #3: Split-Test
Split-testing is important — especially when running a Facebook campaign.
No two ads may perform exactly the same, right? So, which one would do better?
You will never know it unless you run them both. The tip is to create multiple versions of your ad and run them for an appropriate amount of time.
Once you have enough data for all such ads, start comparing the results you get from them. However, make sure that you are targeting the same groups of audience, or you won’t be able to determine which ad worked best and why.
On the other hand, you can also run exactly the same ad but for slightly different groups of audience. It’s all about segmenting and finding the best way to move forward. Although it does seem like hard work, the research always pays off because you won’t have to do it again for future ad campaigns.
Tip #4: Don’t Forget Retargeting
One of the most common mistakes I’ve seen is that not many marketers pay enough attention to retargeting.
It’s a huge mistake, which will never allow you to achieve the maximum potential of your campaign.
What is retargeting?
In simple words, it is all about targeting certain people again.
Who are these people? Are they randomly selected? No.
Those would be your target audience, who did show some interest in what you have to offer, but didn’t actually go through with the purchase. For instance, you ran an ad. 200 of your potential customers saw that ad, clicked on it, reached on the landing page, but abandoned the cart at the last moment.
This behavior suggested that they did like your product, but for some reason they abandoned the cart and didn’t buy it.
Retargeting tries to convert those potential buyers into paying customers by targeting them once more with a more customised version of your ad.
For instance, maybe they were turned off because of the shipping charges. If that was the case, you can run a separate campaign targeting only those people and offer them free shipping.
Retargeting works. According to a research, 70% of people who are retargeted eventually convert into paying customers. So, don’t just let them go – start using retargeting ads!
That concludes my 4 Facebook Ad Tips for Better RIO and Profit – I hope you found it useful! If you have anything to add or have any questions or queries please leave a comment below.