TARGET (and I don’t mean the store)

Placing ads on Facebook provides one of the most targeted advertising opportunities today. Online advertising has gone through incredible growth in the last few years and social advertising is no exception. You can advertise on Facebook, LinkedIn, and YouTube with increased chances of reaching your perfect customer thanks to the targeted demographic information.

Recent projections have forecast that Facebook’s ad revenue for 2011 may be around $2.5 billion dollars. Last time I checked, that was a heck of a lot of money for a seven year-old company. Why is Facebook advertising so popular?  Because Facebook has a wealth of information about its users.  It knows its members’ sex, age, location, likes, and interests.  This, in turn, translates into Facebook’s ability to target ads to users’ specific tastes. Knowledge is power and in this case, knowledge is money!

Facebook ad pricing works on an auction system (just like Google ads if you have tried your hand at those).  You place a bid to tell Facebook how much you are willing to pay per click (cpc), or per thousand people who will potentially see your ad (cpM).
your actual cost will depend on how many other people are bidding for the same demographics or keywords.

In other words,for a relatively tiny amount of money, you can build LIKES for your hopefully compelling Facebook Business Page and then you will have the opportunity to try to develop a long-term relationship with them that could potentially result in a purchase.

PLACE YOUR AD AND MAKE IT GOOD

Before placing your first ad, you need to design your campaign and the ads with the following things in mind:

GOALS OF THE CAMPAIGN….what are you trying to achieve? A certain number of
“Likes”, sales, interactions??  Be sure you have the tracking mechanisms in place.

CAMPAIGN DURATION
How long will you run the campaign? Have enough ads to test and allow for rotation of the ads every 2-3 days. Have backup ads to replace an underperforming ad if needed.

CAMPAIGN BUDGET
what will be the overall budget and daily budget? Facebook makes it easy to automatically turn ads off as you hit these thresholds. you can run ads for as little as $1/day (which may not pay for one click but you could do it).

AD DESIGN & TARGETING
Design the title, body, and targeting for several ads in your campaign and split test several factors (more on this later).

CLICK THROUGH THRESHOLDS (IF AT FIRST YOU DON’T SUCCEED… TRY TRY AGAIN)
Set your targets ahead of time so you know when an ad isn’t performing well. Typically, Facebook ads don’t get as good clickthrough rates as Google ads because people are not actively searching for something. Your ad has to pique a user’s interest to get a click. A clickthrough rate of 0.02 – 0.05% can be a decent benchmark, but it depends on your campaign. Always pause the ad once the clickthrough rate starts dropping to 50% of the original value. you can reactivate it later but people do get fatigued of seeing the same ad.

CONVERSION RATES
track how many conversions you are getting according to the goals that you set. If your goal is new “likes,” make sure you are getting them and not just clicks. If your goal is sales on a website, make sure you have a tracking system in place to see how many
sales your campaign is creating.