We know what you’re thinking: “Great. Another KPI I have to measure.” But understanding the ROI of your Facebook ads can help you make the most of your social media strategy, your PPC marketing, and — perhaps most importantly — your overall digital marketing spend. Let’s take a deeper dive on why ROI matters, how it works, and how to make it work better.
Facebook advertising can give you a better bang for the buck than nearly any other platform. After all, the average person spends six hours per week on Facebook, with some spending even longer than that. When it all comes together, a single ad can make your brand and your message go viral, reaching more people in more places than you ever imagined possible. But what about the times when you’ve labored over your headline, every last word in your script, and every last word in your video, only for your efforts to fall flat?
Why it Matters
Digital Sherpa recently cited a case study that examined a Facebook campaign conducted by shoe retailer Gravity Defyer. The company wanted to expand its demographic from its 45-50 year old core audience and reach more people, but needed their customer service to scale with the higher traffic. Through initiatives like giveaways, improved organic content, careful targeting, and rigorous testing, the company doubled its revenue in ten months and estimated a 450 percent ROI.
Measuring Facebook Ad ROI
Facebook Insights, Facebook’s own tool for measuring ad performance, is incredibly powerful. You can track reach, ad cost, website clicks (with cost per click), and conversions, all sorted by ad type. There’s a significant drawback, however: conversion data is only available for 28 days. If you’re running an ad over a longer period of time, that poses problems.
You can improve KPI measurement by tweaking your landing page, or integrating a tool like Zapier with your email provider. Other contact management systems and ecommerce solutions (like ConvertKit, SalesForce, and Big Commerce) often have these tools built in, or can add them easily via apps so you can monitor all your data from one dashboard.
Improving ROI for Facebook Ads
The fundamentals for improving Facebook ROI are similar to those you’d apply to other parts of your sales funnel. Namely:
• Know your objectives
• Target carefully
• Optimize your landing page
• Keep your design simple and free of distractions
• Write pithy and effective headlines
• Keep your visuals catchy and alluring
• Make sure your call to action is clear, unambiguous, easy to find, and easy to act upon
• Test, iterate, and improve constantly
Call HV Social Media for Expert Facebook Ads Support
Advertising is nearly as old as business itself. As the business landscape has changed, so too has the advertising landscape and the techniques available to amplify and expose your brand. Facebook represents a golden opportunity to reach new people — the right people, your people — in places and ways you couldn’t before. But that promise also comes with a challenge if you’re going to make the most of it. We can help you do just that. Contact HV Social Media for a consultation today!