7 Secrets to Advertising on Facebook
by James and Joey Bridges | February 09, 2011
"Don't wish it were easier, wish you were better." - Jim Rohn
A market that has 600 million+ people and growing provides an opportunity to generate additional sales. The advertising platform on Facebook has been available for slightly over 18 months.
Being a first into a new marketplace has advantages and disadvantages. Over the last 18 months we have consistently generated a return on every dollar we spent on Facebook. We did this for our business as well as for our clients. What we have discovered is a tremendous opportunity to generate sales.
Before we get into the 7 secrets to Facebook advertising let's be clear that advertising on Facebook is not for every business. Businesses that have customers that are easy to identify stand the most to gain. For example a business that targets groups such as doctors, lawyers, nurses, and trade groups can be up and running quickly on Facebook.
These secrets below have come after spending tens of thousands of dollars. We believe that the goal of advertising on Facebook should be to acquire additional leads and sales for your business for as little as possible.
1. Creating a profile of the customer that you want for your business. On Google, user's type in search phrases which you choose to advertise on. Facebook users are checking in with their friends, family, and coworkers. They fill in their profile information and you can choose who meets your best customer. The more you know about your ideal customer the more profitable your advertising experience will be.
2. Identifying what a lead and client are worth to your business. Advertising on Facebook is about spending a little and generating a return on the money. In order to know what you can spend in advertising, knowing what a client is worth is critical. For many different niches, advertising on Facebook is 25% of the cost of Google. When you know how much leads are costing you in your business now this is a great place to start.
3. Sending them to a Facebook Fan Page. Along with our clients, we tested sending traffic to a website and to a Facebook Fan Page. What we discovered was that traffic sent to a Facebook Fan Page resulted in cheaper leads. By sending traffic to a fan page you have the opportunity to generate "Likes" for your page. When operating a Facebook fan page that also provides users with the opportunity to give you their e-mail address, you can collect Facebook leads and e-mail leads simultaneously.
4. Having multiple ads ready to rotate. Unlike text ads on Google that can be changed quickly, Facebook ads' main conversion point is the picture. Pictures provided the biggest improvement CTR (click through rate) for an ad. In many cases the picture accounted for 65% of the response rate. Pictures that worked best across multiple niches were women, product pictures that spanned the entire ad, and bright images that were attention getting. Purchasing several pictures in advance from a website such as istockphoto.com will prevent any delay in changing your ad to increase the response rate.
5. Monitoring the results of your ads for maximum return on your money. It makes no sense to spend money without knowing if it is working. On Facebook there are several key items to track. Facebook fans have value. Tracking the daily fan growth is one item to track. Other items that business owners should track are CTR (click through rate), leads, and cost per click. These items can be tracked on a simple excel sheet. Having this data on hand makes it easy to see what decisions have to be made.
6. Making changes based on data. The data that Facebook provides to advertisers goes far beyond "how much money you spent". Users submit their own information to Facebook. Advertisers get to see who is clicking their ads. This means you can begin to develop greater understanding of your customers. You will discover similar books, magazines, areas of the country, and age ranges of your customers. Based on this information you can change your ads to reach your target audience.
7. "Friends of Friends Theory". One of the single most profitable advertising techniques on Facebook is using the power of social proof. There is a single condition that you can select when advertising that allows you to advertise to friends of those who are connected to your page. In other words you are advertising to the friends of those who are connected to your page. Friends purchase similar products and services. Across our testing and those of our clients, costs were reduced by as much as 80%.
WARNING: Do Not Spend Even $1 on Facebook Until You Read Below
Facebook provides a platform for marketers to advertise. Their job isn't to make it easy to make money. What we discovered, and continue to discover, is that the marketer who watches for the trends can make money while the one who just lets their money "ride" like Las Vegas loses quickly.
Two rules of Facebook ads that should not be broken are as follows:
* When you get fans and leads at the same time your money goes twice as far. Advertisers who just advertise to a website are at a disadvantage. Advertisers who advertise to a fan page that can't collect leads are also at a disadvantage. Make sure you have the ability to get fans and e-mail addresses at the same time.
* Watch weekend traffic on Facebook. Weekend traffic, at this point in time, is currently 10X more expensive than traffic on Monday through Friday. The cost per click isn't more money it is simply that the traffic doesn't convert. While every niche is different we highly recommend turning off advertising on Facebook on the weekend.
For those willing to advertise on Facebook you will find a steady stream of traffic that you can turn into sales for your business. It won't stay cheap traffic forever so we recommend diving in as quickly as possible.
James & Joey operate a consulting and training company that guides business to building a profitable business presence on Facebook. Their tactics, strategies, and methods guide companies to generating sales for business units or entire businesses using the power of Facebook. James & Joey are our number one pick for everything Facebook here at Glazer-Kennedy. You can find them at FB4Dollars.com
Glazer-Kenndey Insiders Circle, owned and operated by internationally known marketing personalities Dan Kennedy and Bill Glazer, is THE place where truly smart, progressive, aggressive entrepreneurs with a love for marketing, a sincere desire to get rich and richer (with no apologies for doing so), and an optimistic, forward-looking attitude, gather' to exchange and share timely information and "what's working today" strategies and examples. Get Bill Glazer's #1 Bestselling Book, "Outrageous Advertising" for FREE. Click here.
Chia-Li Chien, CFP®, CRPC, PMP; helps entrepreneurs to creating business value that transforms their world. She is the author of Show Me The Money and columnist for WomenEntrepreneur.com & Fox Business online. She is available for consulting, speaking engagements and workshops. She can be reached at http://www.chialichien.com or email@example.com.