3 things every company should be doing right now on Facebook
by Jennifer Spivak | May 14
Facebook is blowing up. Their most recent financial results have kept their stock price soaring because of the huge revenue increases the platform is seeing as more and more advertisers get onto the platform. However one thing that we see consistently when we look at companies’ campaigns is that these advertising campaigns are very sub-optimized. Since we can usually lower the cost of acquisition by 60-80% , that means most brands we talk to are spending 2-5x as much money as is necessary to achieve the same results. This blog post shares some of the quickest Facebook ad tips that any company can implement to improve the performance of Facebook advertising and maximize ROI.
Do you want your customers to do things on your website? Which things are the most important? Do you want people to buy something online? Do you want them to fill out a form, essentially becoming a lead for your sales team? Do you want them to read your content? Do you want them to download your app? Do you want them to install your game? Most companies have a specific action that they want people to perform on their website. And usually some smart advertising will net you more of the behavior you are looking for. But if you are looking to grow your organization, you need to do more of what works and less of what doesn’t. If you aren’t using conversion pixels to track behavior on your website, you won’t know which users are performing certain actions. You won’t know which ads are the most successful. Most importantly, you won’t be able to recreate your successes.
For every one of our clients that runs Facebook Advertising, we make sure to install Facebook conversion pixels to ensure we are accurately measuring who does what on our client’s websites. This way, after our structured methodology for testing ad creative and audiences, we can close the loop and see what works!
The reason companies need to set this up now is that you can’t get this data retroactively. If you don’t have the pixels installed, you can’t find out who checked out last week, or last month. You can’t find out who bought your products out of the huge audience you advertised to. You only have access to the data once it is installed. If you need help setting it up, just shoot us an email. The process can be buggy and if you don’t do it right you will have something even worse than no information: bad information.
Site retargeting allows you to advertise to people who have already visited your site, in an extremely cost-effective way. Here is a quick example: if you have 10,000 people visit your site over the last month who didn’t buy anything or didn’t come back, you can show them all an ad 10 times, and spend less than $100. The best part is that if you were advertising to a general audience, that $100 wouldn’t go very far. You wouldn’t know if those people were interested in your product. However with site retargeting, you are only showing ads to people that have already been to your site. These people by definition know who you are, and thus they are a “warmer” lead than someone random who has never seen your site.
Another benefit of this tactic is that it gives you a better return on your ad spend. Out of any ad campaign, a lot of people might click on the ad, come to your site, and then leave. This tactic allows you to communicate with them again. They clicked on your ad for a reason, and this second chance allows you to offer them something special, try out different messaging, or see if they will click again. Since the ads are showing to super-targeted audiences, there is virtually no financial risk.
Similar to conversion pixels, site retargeting only works moving forward, not retroactively. Unfortunately you can’t retarget the people that came to your site last month. So get these pixels installed as soon as possible!
This is by far the most amazing advertising innovation since Google Adwords. Lookalike audiences take the benefits of Facebook advertising (targeting people based on who they are) and create magical opportunities if you know how to set things up.
Lookalike audiences essentially uses all of Facebook’s data points on it’s entire user base to find you more of the customers that you want. How does it work? You give Facebook a list of emails of your best customers (or use the tracking pixels mentioned above), and it uses it’s immense data-crunching capabilities to give you people that share the same attributes. Obviously because of user privacy it doesn’t tell you who these people are, but it doesn’t need to. It simply creates an audience of these people modeled on your customers, and allows you to advertise to them. Even better, you can combine this audience with all of the normal parameters that you would usually use in any other Facebook campaign.
To give you an idea of how well this works in practice, one of our client campaigns was able to lower their cost-per-lead by over 35% solely by implementing lookalike audiences. If you can combine this tactic with structured ad testing, lowering your costs by 60-80% is average.
The implementation of these tactics can look very different depending on the client. If you are interested in seeing some deeper case studies, either head over to the case studies on our site or just give us a call – we are always happy to teach companies how to employ these tactics most effectively (that’s why every one of our employees is an instructor at Startup Institute!).