Are Facebook Ads Worth It?
Most people when asked will have something negative to say about Facebook Ads. The Ads Manager interface is clunky at best to use. Ads get rejected for the weirdest reasons. People get their Ad accounts banned completely and can’t open any more leaving it impossible to advertise on Facebook and Instagram. Yet when they’re done right, they’re an amazing way to scale your business. So are Facebook Ads worth it?
Why consider Facebook Ads?
Facebook Ads when they work can be a great way to reach people who have never heard of your business before. We use the ads to introduce your business to these new customers. Some even buy on the first connection with your business if the ad is positioned right. Others take longer to nurture, and by using Facebook Ads audience tools we can retarget anyone who visited your website, your Facebook, Instagram or even anyone signed up to your email list.
We know that some people need multiple touch points with a business to buy. They need to trust in the brand, have their questions answered, and be persuaded to purchase. Facebook Ads, alongside active social media channels, provide the number of touch points required.
If you have your conversion funnel optimised from reaching new people to them purchasing, read more here on how to do this, then technically all you need to do is increase sales by adding more budget to ads, and your sales should just grow.
So why do people ask if they’re worth it? These are the common reasons I hear.
I don’t know if they are working
I break Facebook Ads into two parts, the creation, and the analysis. Some people can create amazing ads but have no idea how to read the data once they’re up and running – are they actually doing well or not?. Others can tell you exactly how to fix an ad based on the data, but they’re not the best copywriter or at making the creative so they can’t actually make the improvement themselves.
After you have created your ad, how do you know if they’re working? The first thing you want to keep an eye on is the end result you want – sales, adds to carts, donations, views. If it’s not actually achieving what you want it to then it isn’t working.
If it is, is it viable? Are you paying a reasonable rate for what you want? Some metrics here that you would want to track are;
- cost per click (CPC) – is it costing you too much simply to get people to click
- cost per acquisition (CPA) – is it viable? If it costs you £10 in Facebook Ad spend to sell a product worth £5, is there any point?
- return on ad spend (ROAS) – how many times your ad spend are you getting back? I like to aim for over 4x with Facebook Ads. That’s usually the minimum for most business owners. It’s worth factoring this cost into your pricing structure for any future scaling.
If you’re not sure what you’re looking at, reach out to us, we don’t mind advising on this kind of thing for free.
The main thing to look at is if you are getting results and if they are cost effective results.
What can Facebook Ads do for my business?
We don’t advise you to run Facebook Ads unless you’re already getting sales in an ideal world. You need to make sure your business can sell how it’s currently set up before you get lots more people looking at it. We get new eyes on the business (reach), we get them to click on the website, then a number of those need to add to cart, a number of these buy. This is commonly called a funnel. Facebook ads simply tip more volume into the funnel. Technically the more people that go through the funnel the more sales you will get. And you will only get so many people organically. This at some stage in the business won’t be enough and you will need to pay to hit more people. We think, despite the issues, Facebook Ads are an excellent way to do that.
The other thing to consider is how it can help build your brand. Many people don’t buy at that first touch point. We need to help them get to know the brand, and social media is ace for this. However, we know that the algorithm can’t be a tricky business and just because we post it doesn’t mean a potential customer will even see the post. You can up these odds using Facebook Ads. Try an audience that includes people who have seen your website or engaged wth a social media post previously, take away anyone who has already purchased, then show them ads designed to build a picture of your brand.