Will Small Businesses Still Profit From Facebook Ads in 2021

Do you feel that the number of responses your Facebook ad gets is decreasing every day? Do you find it harder to convert people into paying customers through your Facebook ads than it was two years ago?

If you're having a hard time now, it will keep getting harder.

This article will discuss whether small businesses can still profit from Facebook advertising in 2020.

According to Facebook Chief Operating Officer Sheryl Sandberg, Facebook has more than 7 million active advertisers. There are 2.4 billion active users, Facebook only has 342 active users per advertiser.

Not only are more people promoting ads, but it's also getting harder and more expensive to get clicks. If you see, now the cost of getting clicks, CPC Facebook Ads in newsfeeds is getting more and more expensive.

In the second quarter of 2008, the cost was approximately 0.43. In the second quarter of 2019, it rose to 0.64. Clickthrough rate of news feed ads has also decreased. In the second quarter of 2018, it was 2.24%. In the second quarter of 2019, it decreased to 1.20%.

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According to Instapage, the average conversion rate for Facebook ads is around 9.21% across all industries. You have to pay an average of $64 to get nine conversions. Conversion doesn't mean sales either. In this context, it could be just collecting emails right? This means that it does not always result in a positive ROY. So the real question is, how can a small business still be able to profit from Facebook? In many cases, however, ads get fewer clicks and costs soar.

Here are some tips to follow:

1. Don't aim for profit on the first contact with a prospect.

Maybe you used to just put your ad in front of the crowd and then direct them to your product or service page, try to convert them into conversions, and then you make money. However, this process is very expensive.

These days, the best and cheaper way to generate sales is to first take an ad on Facebook, point to our educational content, then educate them. After that, we re-market. Then, show them an ad that directs them to our product or service page.

Even though we had to show the same ad twice to users, we found that the overall cost for the conversion was much less than if we directed them directly to an ad in the first place.

So instead of directly sending them an ad, we direct them to an ad that is part of some educational content and then remarket it. From a conversion point of view, this method is less expensive and cost-effective.

2. Use retargeting ads for really qualified prospects

There's one thing we do that generates so much revenue from Facebook and it's our campaigns with the highest ROY conversions. This is what we do. When someone visits the checkout page but doesn't make a purchase, we create a video showing what it would be like if they become our customers. What benefits will they get?

If our main offer uses logic to convince them to buy, then our video will use emotion. Why? If they don't convert through logic upfront, then sending a remarketing campaign or video that also uses logic may not work. So, we do the opposite.

If your landing page is trying to sell through emotion, use logic in your remarketing videos. Also, be sure to add upsells (offering a more expensive product/service) and down sells (offering a cheaper product/service) that increase LTV, allowing you to spend more money on Facebook.

3. Use much cheaper video ads to expose your brand

Video ads are much cheaper to expose your brand to people because you are spreading your brand even if they don't convert immediately. As stated in marketing the rule of seven, the way to build your brand is to get someone to see and engage with your brand seven times.

If you use video, you'll get more engagement because Facebook is pushing more video ads than text-based ads.

also read : Creative Ways to Promote Products on Facebook

4. Use a lookalike audience

Once you have people converting, use a 1% lookalike audience on Facebook. This will allow you to find very similar people, who are more likely to turn into conversions. If you don't use a lookalike audience, you need to serve a lot of ads and waste a lot of money. Similar audiences will help you improve your results and save a lot of money.

5. Test different creative materials more often

You'll be surprised at the difference in performance when you cycle through creatives at least once a week. When I run some of my campaigns, we rotate creatives two to three times a week in the low-end classes and sometimes even rotate the creatives daily in the high-ends. This is very effective because only by producing so much creative material will your ROY be better.

6. Keep your ads new

It's not just about banners, creative materials, but what is your landing page about? What is your script? Did you change something? Are you trying to convey a different message? Are you trying to target a new audience?

If you keep testing, tweaking and keeping your ads new across all the marketing channels you use (landing pages, scripts, testimonials, and reviews), it will get your campaigns known and get more conversions.

If people see your ad repeatedly, you're not reaching new people and you're not converting people who continue to see your ad into conversions. You have to stop it. Both factors will make your ad score decrease and your costs increase.

also read : Digital Marketing Ways That Can Be Applied To Your Business Or Start Up


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