9 ways to lower your Ad costs
by Ara Ohanian
November 18, 2022
Knowing your advertising cost benchmarking will help you evaluate the results of your campaign and realize the potential ROI for running ads. Not knowing the price and buying the product from the online store. Why is Facebook treating advertising campaigns in a different way? Thus, if you can look at the results of Facebook’s advertising campaigns, and ask yourself, “Is the cost of advertising low or high?”, this article will help you learn the best ways to manage your ads with low costs.
1. Target a specific audience
Advertisers need to set criteria as accurately as possible when specifying customers. By modifying your audience, you can substantially reduce competition with your audience, like any other brand you’re advertising with. One thing to keep in mind is that you’re in a bidding war with hundreds of other brands, so only bid on those you really want to reach. This means the marketers will increase the likelihood of your specific target audience’s engagement with their advertised content. You need to precisely tailor your ads to appeal to a specific demographic, geographic area, and set of interested people. It provides the best opportunity to generate click-to-click traction.
2. Look for audience overlap
Digital marketing agencies are using Facebook Audience Overlap tool to see if their customers have significant overlap. And if there is overlap, they select the ones most relevant to their marketing goals. If there is duplication, they can mutually exclude their clients to avoid bidding on their own.
If you set up a campaign that targets two customers in separate ad sets without excluding customers. You pay $0.10 per click, you are likely to waste up to $220,050 in an ad auction by bidding on yourself. But, Except for the audience’s interest in entrepreneurship and vice versa, you run the overlap tool again to get 0%. This is important because if you have a high duplication rate. You are essentially bidding on yourself in auctions to deliver your ad to the same person.
3. Take advantage of video content
The best way to reduce advertising costs on Facebook is to use videos from anywhere. Video is an average of 10% of the cost of a carousel or single-image ad. Let’s say you pay $ 0.50 for an average click of $ 0.15 in a video campaign and CPC uses a single image ad of $ 2 or more for the same potential customer. Facebook values the video content of your ads because it usually leaves a larger impression share of your video and makes your CPC cheaper.
Facebook’s proprietary off-platform tools can be used to create slideshows of images of its products or services. This is meant for clients who don’t have a budget to create video ads dedicated to their campaigns. These can be downloaded as video content to Facebook Video Ads’ ideal specifications.
4. Set up your Facebook Pixel
One of the biggest tips photographers and social media experts give you is to install a Facebook Pixel. These are a few lines of code you insert into your website to track conversions and access data about your clients.
Up to your Facebook page, we not only track who our customers and visitors are, but we also collect data such as: What are they interested in? Where do they live? How many children do they have? How much money do they make? Are you earning? How many recently have they bought? What is their average purchase price? Are they going on vacation soon? It is likely to be very detailed. This means that marketers can target people who are in a position to initiate a purchase of a product.
You can only retarget users who have visited your website. Instead, you can target actions taken by users, such as those who added to their cart but didn’t complete their purchase. Facebook Pixel means brands can track which ads work best and generate more revenue. Also, you can create dynamic sales funnels to achieve sales while you sleep.
5. Test different advertising material
Testing Facebook creatives to make sure that any run is the most recommended. With a set of Facebook ads, you can run multiple ads at the same time on the same budget. Knowing your audience perfectly is not enough. Because the small nuances of the selected images, stationery, and action-prompting phrases can make a big difference in the results over time.
You can use various combinations of texts and images to understand trends in advertising performance. It removes the best elements and the worst elements from efficient advertising. Creating this data-driven ad is the best way to get the best value out of your ad budget. The
FacebookAds Difference usually starts by testing the image of a Facebook ad, then testing the title and copy of the ad. All of this is done in this particular order to curb costs and increase conversions. Even small improvements in click-through rates and conversion rates can make a huge difference to your ROI in the long run. Reduced B2B customers using CPC JC social media.
6. Use retargeting segments
To create more appropriate retargeting segments on Facebook, experts recommend segmenting website visitors based on their level of engagement. Using a custom retargeting algorithm to automatically classify your website visitors into low, medium, and high engagement groups. And then push them to the ad networks your customers want. Also running dynamic retargeting and retargeting ads to reduce cost-per-acquisition and generate revenue on Facebook.
7. Use bid caps
Many platforms like Facebook are providing tools to reach their most valuable customers. So the results tend to be high enough to fine-tune customer targeting. Also, charging is in its own interests. This manages clients based on the lifetime value of individual leads or sales, specifically with app install rules and bid caps.
If Facebook gives you and your competitors the same advertising opportunities, Facebook users will be overwhelmed by all the ads in their personal space. As a result, they started using Facebook less, which is bad. This is why Facebook controls the number of ads users see in the Facebook app family. The platform provides a limited number of ad locations and allows advertisers to compete for ad space. You will get the best spot for the highest bidder ad. To stay competitive, you have to develop a good bidding strategy.
Facebook offers three bidding strategies.
- Expenditure Base: Focus on spending your entire budget and getting the maximum results and value possible.
- Goal Base: Set the cost and value you want to achieve.
- Documentation: Controls the overall bid amount in the ad auction.
8. Target fans separately
Targeted consumers connected to your Facebook page are stored as independent fans. So there are dedicated campaigns built for them. Meanwhile, you also exclude existing Facebook fans of other customers. The same is true for website visitors and converters. This is because Facebook fans are generally the most efficient customers in terms of engagement rates and conversion rates.
You definitely want to reach all your Facebook fans. So your best bet is to create individual customers for your Facebook fans. For a non-profit client, for example, you can run a funding campaign that the cost per conversion for a segmented Facebook fan audience can be $1.16 and a ROAS of $56.58. Meanwhile, the cost per conversion is $98.45 and the ROAS is $2.22. In interest targeting, excluding the Facebook fan age group.
In the final phase of the funding campaign, you can cut daily budgets quickly, bid on interest targeting, and focus on high-yielding customers. You will have a clear picture of where your opportunities are and you can direct your customers’ money to their best customers.
9. Update the creative
It is advisable that you update the Ad text every two weeks to avoid advertising fatigue. One of the most common problems customers hire digital marketing agencies for is the inability to update the visuals of their ads. Once you make sure your ads are running, you don’t track how often they’re running. So you either get tired of your ads or your customers are already too used to them.
A case study in which the first six days of CPC/CTR/CR and CPL were consistently called healthy campaigns. Yet, by day 7, CPC and CPL started to increase, as everyone targeted reported an average of 4 ads. Also, when fewer users click on your ads, Facebook starts to lose money and you have to decide whether to stop serving ads or charge an extra fee. To prevent this, advertisers must report daily on ad-level conversion metrics. After running some ads, digital marketers can feel the exposure/people range of the part where the ad gets tired. When approaching the point of fatigue, the report will show the measurement items and temporarily suspend the ad.
At the end of the day, there’s no one strategy that is tailored to fit all businesses. You need to use a combination of the tips mentioned above to come up with the best ad strategy. Also keeping in mind not spending too much money on your ads and ensuring a high ROI. Always remember what your campaign’s goal is; who is your target audience and what kind of budgeting and bidding you have. Ad costs can be tricky but if you master the art of ads you will ensure that many customers value your social media pages and potentially end up buying from your business.
Entrepreneur & marketing strategist with a little background in computer science.
July 11, 2022
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