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Is It Worth It to Advertise on Facebook?

July 6, 2021

Is It Worth It to Advertise on Facebook? | AIA Book in a free 30 minute strategy session

If you are new to Facebook advertising, then you probably have a lot of questions right now.

  • Should you just boost a post or go deep into Facebook ads campaigns?
  • Are you targeting the right audience?
  • Are you investing your advertising dollars wisely?
  • Is running ads on Facebook even worth it?

We get the confusion. As effective as this social media platform is at engaging your audience, the endless options, and possibilities that come with setting a Facebook ad can overwhelm small business owners.

But, here’s the thing. Facebook’s user base is growing and the social media giant is constantly updating and improving its advertising capabilities, adding new creative ad formats and enabling mobile targeting. Moreover, Facebook users like and want to engage with ads. One report showed that on average, Facebook users click on 12 ads per month. To ignore advertising on Facebook is like ignoring a significant percentage of your audience.

With that in mind, our Facebook Advertising Specialist is ready to explain why Facebook advertising is worth it.

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Organic Content Is Not That Effective Anymore

Why advertise on Facebook when I can simply post every day? It’s free, my followers will see my content, and maybe they will share it with their network.

This would have been valid in the good old days of Facebook advertising. Nowadays, however, Facebook’s organic reach is rapidly declining. The algorithm is designed to show users content from the Facebook pages that they engage with the most and that matches their interests. Facebook prioritises posts based on relationship (who a user typically interacts with,) the type of content, popularity (how many likes and comments a post gets,) and recency (newer posts are shown first.) As such, organic reach really took a dip in 2020 and it’s down by 5.2% while the average engagement rate for an organic post is at 0.25%. That means that out of 100 followers, only about 5 will see your post, and probably none will engage with it.

Those are not very good numbers.

So, if you want to put your products and services in front of your target audience, you need to invest in Facebook advertising. But, with other online advertising platforms so effective at helping you reach potential customers, such as email marketing or Google ads, do Facebook ads work?

How Much Do Facebook Ads Cost?

Is It Worth It to Advertise on Facebook? | Australian Internet Advertising

If you are a small business with a tight budget, then you’re probably watching your ad spend like a hawk. So, let’s take a look at how much you can expect to pay for Facebook ads.

According to an AdEspresso report, the average cost-per-click for a Facebook ad is $0.55. Wordstream, on the other hand, found that the average CPC across all industries is $1.72. These values depend on the industry you’re in. The insurance and finance industries have the highest cost-per-click ($3.77) while apparel businesses have one of the lowest CPC ($ 0.45 per click.)

Of course, just the cost doesn’t tell you much. You also need to know what the conversion rate and return-on-ad-spend (ROAS) are.

To measure the success of your Facebook Ads campaign, you will need to check a few metrics diligently:

  • Conversion Rate Ranking: This metric shows you how your Facebook ad expected conversion rate compares to other Facebook ads with the same objective and similar audience.
  • Cost-per-click (CPC): This metric shows you the average cost for a click from your ad to your landing page. If you have a high CPC, but a low click-through rate, then you know that your ads aren’t working. Maybe you chose the wrong ad format or maybe you’ve targeted the wrong audience.
  • Click-Through-Rate (CTR): This metric shows you the percentage of Facebook users that have clicked on your landing page after seeing your ad. Ideally, you want a high CTR and a low CPC – that’s how you know your Facebook ads are working.
  • Cost per Action: This metric shows you how well your ads are generating actions and at what cost. This is an important metric as it allows you to control your cost and determine how much you want to pay for each action, such as the average cost per click vs impressions.

So, Is Facebook Advertising Worth It?

Let’s look at some of the things that make Facebook advertising so effective:

Massive Reach

With roughly 2.85 billion monthly active users, Facebook is the largest social media platform worldwide. But one of the great things about this number is that it allows businesses to target audiences based on demographics, interests, behaviours, and other criteria that can help advertisers improve the ROI of their Facebook ad campaigns.

Moreover, Facebook keeps up with users’ media consumption habits and has adopted its platform and advertising capabilities to increase mobile devices usage.

Facebook Ads Are Cost-Effective

While the numbers depend on the industry you are in, the fact of the matter is that Facebook is one of the most effective advertising platforms in terms of costs. Moreover, the average price for an ad decreased by 9% in 2020, meaning that you can get more bang for your buck.

Should You Give Facebook Advertising a Try?

If you set your campaign right and target the right audience, Facebook advertising can send some valuable clicks down your way.

Make sure to:

  • Choose an objective that aligns with your business goals.
  • Target the right audience. You can also include your email list and target the people who’ve already engaged with your brand.
  • Based on your campaign objective, choose the right ad placement.
  • Create your ad – don’t forget to include compelling calls to action.
  • Use the Facebook pixel to track conversions and remarket to the people who have viewed your product or service.
  • Test everything – from the ad placement to the copy and schedule, don’t make any assumptions, and test every variable.

Do You Need Help with Facebook Advertising?

With a massive reach, an engaged audience, and low CPC, Facebook ads can make a lot of sense for businesses that are trying to reach new audiences. But, at the end of the day, the success of your Facebook advertising efforts will depend on how well you’ve set your ad campaign. And, if you are new to this platform, it’s easy to make a few costly mistakes.

You can avoid all that by working with one of the fastest-growing digital marketing agencies in Australia. Whether you want to expand your reach, boost your engagement or grow your lead generation, we have the experience, know-how, and tools to help you reach your business goals.

If you want to grow your business on Facebook and are looking for a partner who can help you do just that, you should get in touch with Australian Internet Advertising. We can handle your Facebook advertising efforts from A to Z so that you can focus on other aspects of growing your business.

 

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