Why are Facebook ads difficult for small businesses in 2023?
Are you getting fewer Responses for your Facebook ads every day? Are you paying more than what you did pay three years ago and getting a lower conversion rate? If you are feeling it is hard right now it will only keep getting harder. Today we are going to discuss, will small businesses still be able to profit out of Facebook ads this YEAR (2023 where are we going )??
But First, You Should Know These Facts.
According to Facebook’s chief operating officer Sheryl Sandberg
Facebook has over 7 Million active advertisers.2.5 Billion active users. That means Facebook has only 343 active users per Advertiser.Not only more Advertisers are getting in, but also it is getting more expensive and harder then it was three years ago
Now when we look at the cost per click Facebook Ads CPC (Pay-per-click) on news feeds have gotten much more expensive this yearin 2008 Q2 it was 0.45¢, in Q2 of 2019 0.65¢ and the CTR (Click-through rate) of news feed ads has massively dropped done from 2.24% in Q2 of 2018 to 1.20% in Q2 2019.
According to Instapage, the average Facebook ad converts roughly 9.21% across all industries. that means you would have to pay on average 64$ to get nine conversions, but conversions can also be collecting emails not purchasing right?
so what should you do to get Positive ROI ! and is still possible to profit of Facebook ADs Today I am going to tell you 5 TIPs you can use to keep your ROI Positive
don’t aim for profit at the first contact these days you can’t just put an ad for a product or a services you have to build a connection before you try to make them convert like by giving free advice or a sample and when you post ads about the free advice you will get the cost reduced and your ad will get more leads
The Second Tip:
Use retargeting for your ads for those who gave you there time, what we mean by this is, one thing we have done to generate more revenue from Facebook, This is our highest ROI converting campaign.
When someone bounces off the checkout page and they don’t buy, we would retarget them with an ad showing them what it would be like if they were a customer
so now we try to get with an emotional approach, not a logical approach as the first ad so if you are asking why? it is simple if the logical approach didn’t work for the first time then it is probably won’t work for again so we do the opposite
If our retargeted video uses logic, in our landing page we try selling through emotional approach, in addition to that, we make sure to add in Upsells and downsells which increases the LTV ( lifetime value ), which allows you to spend more on ads
The Third Tip:
Use video ads because video ads are way cheaper to increase your brand awareness on social is you don’t get high conversion at least you are getting your brand across and as marketing experts say the rule of seven, the way you build a brand is by having someone see and engage with your brand seven times
If you use video ads you are going to get way more engagement and value for the price because Facebook wants to push video ads over text-based ads
The Fourth Tip is:
once you start getting people to convert after collecting enough data use the 1% lookalike audience on Facebook this way you will get way much engagement and leads
And Finally The Fifth Tip
Do A/B testing and try different creatives more often, you will be amazed and surprised at the difference of the performance when you change your creatives at least once a week
when we do ads we change creatives at least 5 times a week and we also do A/B testing with our landing page not just change the creatives you should also keep your landing page fresh
At last, I want you also to keep monitoring your ad’s frequency. if people keep seeing you ad multiple times and not converting that means you are not reaching new users.
That will make your ad score go down and that means you will see an increase in cost