Case Study: How you can use Facebook Ads effectively
This article should actually be “The Zen of Social Media Marketing / 3” because I´m using an example written in this book.
My last article about this great book by Shama Kabani was about 7 key elements of a great website.
Let´s get to our example about using Facebook ads effectively. Take a bakery with three different target audiences. We talk about college students, parents with young children and people living within a certain distane of the store. Now we´ve got three different types of ads.
Regarding to the book we take a closer look to one target audience: College students.
1. At first we write down the attributes of the types of customers best suited to our product or service. Shama Kabani uses undergraduate college students between the ages of 18 and 24 who spend a lot of time studying. They generally don´t have a lot of money, and they stay up late.
2. The next step is setting up our ad. To do this we need some key pieces of information:
It´s about the size of the potential audience based on the attributes of our customers. Attributes like location, relationship status, age, gender, interests and so on. Watch the Estimated Reach Box to get a sense of the number of people that match our criteria. These are no precise numbers, but they do provide a starting point for whether to advertise. The bakery could choose to target every person between the ages of 18 and 24 in a 10 mile radius of the physical shop. Or even more specific with targeting people that have a specific nearby univerisity listed under their “education” section.
We have to follow a simple rule: Less about us, more about the customer:
- A provocative headline
- An emotional connection
- An offer or call to action
- An image that is memorable or involves faces
Regarding to the bakery example: “All studied out?” or “need to escape the library?” or “Special offer for students: Show a student ID to get a discount or a free drink after 5 pm“.
Facebook gives ustwo options to pay for advertising: pay per click (PPC) or per thousand impressions (PPM)
Pay Per Click (PPC):
We are only charged when people click on your ads. This can end up being cheaper in the long run, especially when first testing the waters – good for smaller budgets.
Pay Per Thousand Impressions (PPM):
Charged for every thousand people who view the ad, whether they click on it or not. Paying for impressions usually costs less in the bid process, but this method often ends up costing more in the long run.
Another term we should be familiar with here is click-through rate (CTR). Our CTR determines how much and how often we will be charged if we choose PPC. It´s important because Facebook monitors our CTR and will run our ad less often if us rate is much lower than average. (average is around 0,25%)
Facebook lets us “bid” for keywords, similar to Googles AdWords. Facebook will suggest a “bid range” for usbased on how much other companies trying to reach our target audience are willing to pay. It´s an auction system: If we bid 1$ but only needed to have bid 0,60$ to be the highest bidder, then that is all we have to pay.
Further information and some more great examples can be found in Shama Kabanis book “Zen of Social Media Marketing”. I´m pretty sure some of the information above are pretty interesting and good to know.