So you’ve decided to tackle Facebook ads… good for you, your business will thank you in the long run. Facebook ads are easily the most impactful and cheapest way to be advertising your business at the moment.
With this in mind, you can’t expect it to work wonders for you without knowing what you’re doing. You’ve got to be targeting effectively and if you want to build your business you should be budgeting for long-term growth.
In this blog post I’m going to go through the simple, but highly-effective, budgeting practice I use when creating campaigns. The best thing about it is that it can be applied to whatever budget you’ve got from £30 per month to £30,000 per month.
I split the advertising budget to focus on 3 main audiences; your current customers, retargeting audiences, and people who have never heard of you before.
Audience 1) Your Current Customers
Big shout-out to the people who already love what you do! These guys are your bread and butter. Everyone’s heard of the 80/20 rule: 80% of your sales will come from 20% of your customers. And of course, it’s much easier to sell to people who already know you and the quality of your product/service than Joe Bloggs who’s never heard of you.
Undoubtedly, you’ll get the best ROI from ads that target your current customers. That’s obviously hunky dory for your profit margins, but where is the long-term growth?
And of course there’s a limit to how much you can sell to your current customers, you can’t keep bringing out reiterations of the same product or offering endless complementary products… you need to get new people buying.
Your current customers could be those in your email list (it’s easy to upload that list to Facebook), your page fans on Facebook, your followers on Instagram and whatever other criteria you count as a someone becoming a customer. I recommend spending 25% of your advertising budget on your current customers.
Audience 2) Retargeting
If you haven’t started retargeting yet, you’re missing out on one of the greatest tools in a marketer’s arsenal. Have you ever gone to buy something online but in your better judgement you change your mind only to then see ads all over your news feed and succumb to the temptation? You, my friend, have just been successfully retargeted to.
72% of online shoppers are likely to abandon their shopping carts prior to making a purchase. Without retargeting only 8% would return to complete their purchase, however when retargeted to a whopping 26% return to complete their purchase. So people are 3x more likely to purchase if they’ve been retargeted to!
The way to retarget through Facebook is using the Facebook Pixel, it’s pretty simple to set up and is something we go into in-depth on our Facebook Advertising Course.
Again, as is the case with your current customers, you’ll get a decent ROI from these (they are 3x more likely to convert than people who are new to your company) but unless you are regularly driving lots of new traffic to your site, then you’ll work your way through this audience pretty quickly and start just showing people the same ads over and over again.
If you’ve got the Facebook Pixel set up on your website you’ll be able to retarget your website visitors. You can get really intricate with your targeting at this level, and target people who look at specific pages on your website, or who have begun the checkout process but not completed it.
You can also retarget people who have interacted with your business away from your website, e.g. those who have viewed your videos on Facebook or engaged with any of your posts. I recommend spending 25% of your advertising budget on retargeting audiences.
Audience 3) New Audiences
Couldn’t really think of a photo that tied in well with the idea of new audiences so you’ve got the word Hello instead. Now, this is where the majority of your budget is going to be focused, and if you are new to the Facebook advertising game and haven’t got much of an organic following or any data already captured from the Facebook pixel it’ll probably be where all your budget goes (until you’ve built up some custom audiences).
It won’t have as great of an ROI as your other audiences, but it is the only one through which you are reaching new people and getting your marketing messages properly heard.
You need to be spending the majority of your budget here so that you can drive people to your website, at which point they will move into your retargeting audience and will be much more likely to convert to a sale with the next ad of yours they see! I recommend spending 50% of your budget here.
Make it your own!
In my experience of managing ad campaigns for our clients – all with varying budgets and types of businesses, I’ve found this audience and budget split to be a really effective baseline from which to approach your Facebook advertising strategy. As mentioned, however, this is a baseline and I recommend you make slight changes and adjustments dependent on the size of your audiences.
Hopefully this has imbued you with the confidence to take a solid crack at Facebook Advertising. This really is just the tip of the iceberg, and we go into a lot more depth in our Facebook Advertising Course.