The digital space is so saturated with advertising options, it can make deciding what or how to advertise seem like a never-ending maze. Ever feel like you’re desperately searching for the sweet spot only to run into yet another dead end?
You’re not alone, especially on Facebook, where its ever-changing algorithm and ad options can cause a lot of people to simply throw money around hoping to find something that works, which generally results in frustration and little return. But, there is a way you can make Facebook ads work for you and your business.
Learning how to measure your return
The number one problem I see with my clients and my potential customers is that they’re focused too much on front-end numbers: paying the lowest cost upfront and then hoping their leads will turn into revenue.
This is like trial and error, which isn’t always a bad tactic in business, but is certainly a bad approach to Facebook ads. You can -- and should -- do a little math on the front end to determine the cost per lead that makes sense for your business.
In order to calculate that, you need to keep your focus on the big picture. It’s extremely important before you start Facebook ads to have an understanding of your goals. What action do you ultimately want the customer to take?
Selecting the right starting point
Let’s say the end goal is to have a customer purchase a three-product kit from your ecommerce store. Your instinct might be to run an ad straight to that product, but that would be a mistake.
You want to start with something called a tripwire -- a one-time offer. Give customers a massive discount on your product if, and only if, they opt in to your mailing list right away from your Facebook ad.
Why is this an important first step? Because now they’re in your funnel, allowing you to continue to nurture the lead. People rarely purchase a product or service the first time they come into contact with a brand, so this allows you to easily stay in touch and continue to grow the “know, like and trust” factor that will ultimately lead them to buy from you.
Related: Data Shows the 3 Things You Need for a Successful Facebook Ad
Testing your audiences
Facebook ads have to be targeted at a specific audience, and choosing the right audience can be confusing. By starting with a tripwire, you can test different audiences to determine which is converting the best.
On Facebook, depending on your industry, it should cost you about $2 or $3 per lead if you’re running your ad to cold traffic, or a user who’s never heard of your business before and has never visited your site. Your tripwire would be considered a success if you were converting 6 percent to 10 percent of those people. If you’re not hitting that number, you’ve either got the wrong audience or your tripwire isn’t enticing enough -- change one thing at a time until you figure out the problem.
Let’s look at another example: Your tripwire could be an entry-level product at a deeply discounted price or something like an ebook if you’re a service provider.