Who would’ve known fifteen years ago that Facebook, a then minuscule social site created for college students to connect in the United States, would be a major factor in the current success of your business? The day your dad decided to make his profile, it was probably then that you went, oh boy, what is in the world is going on here?
Well, what is going on is that there are now over 2 Billion users worldwide who actively engage, share, and absorb content on the popular social media network daily. To put it into perspective, the total population of China has 1.4 Billion people, and Facebook alone surpasses that amount with active users!
While Facebook is a pool of potential customers waiting to purchase your products and services, studies have shown that over 62% of small businesses continuously fail at positioning themselves correctly in front of their targeted audiences leading to overspending and gaining no results.
If you still find yourself having a hard time making sales or generating leads, our marketing experts at Staiber Consulting have analyzed four key recurring problems we commonly see made and how to avoid these mistakes to make sure your facebook marketing campaigns are successful in 2020.
#1 You Have No Plan In Place & No Way of Measuring Your Campaign’s Success
Creating a Facebook Ad campaign blindly is like blowing a dandelion's seeds in the air hoping all of your wildest dreams come true.
While we are not here to pour rain on your parade, we want you to understand that it takes experience and preparation to create a successful Facebook campaign.
For you to even begin creating the perfect Facebook Ad, you need to know what your target objective is. Are you trying to create Brand Awareness? Do you want your consumers to opt-in to an email list? Do you want potential customers to schedule a call with you? Are you trying to generate sales online to specific products or services you offer?
One of the biggest mistakes small companies endure is not even knowing what their objective is when creating Facebook campaigns. An unidentified objective will lead them to not only no results, but also waste tons of money faster than they can spell the word "broke!"
Once you figure out the objective, you need to know how you're going to measure your campaign’s success. To determine whether or not a campaign is failing or succeeding, you need to figure out how much value each click and conversion upholds to your business.
Determining each value will help you to understand your campaign in terms of pricing and enable you to make the best comparison with other forms of advertising.
When you determine the monetary value for each click and conversion, you can calculate the metrics and parameters that you must stay within to maintain profitability.
For example, Your BEP (break even point) is an important metric to track because it allows you to know exactly what you can afford to spend to acquire a sale. If I am selling a keychain for $10 and i get it for $3, My break even point is $7.
Another important metric is Cost Per Purchase, this will tell me whether I am within my BEP, If my Cost Per Purchase is $15 and my BEP is $7, I know I’m losing $8 to obtain a sale.
Metrics are extremely important to understand and there are many of them however another important one you want to track is LTV (lifetime value) of a client and AOV (average order value).
Why? Well because If your BEP is $7 and your cost per purchase is $15, but the AOV of a client is $25 because they ordered multiple items, well then that $8 that we lost top get the sale doesn’t matter because we were still profitable. Similarly to knowing that your LTV of a client is $30, because if you spent $15 to get a purchase and you only make $7 on the sale, then you didn’t really lose $8, you actually made money because that client will most likely buy again based on statistics.
You can select what metrics you want to track by customizing your columns in your ads manager.
By understanding these metrics you can begin to dive deeper and begin learning how many link clicks you need to get a purchase or how many video views you need to generate a lead, etc.
It’s essential to understand these metrics, otherwise you could be burning money on ad sets and campaigns that aren’t performing and hurting the return on your investment.
#2 You Still Have No Idea Who Your Target Consumer Is
Keep in mind that while understanding your marketing objective and your metrics is key to your success with paid advertising, you must first know who you are trying to target.
Understanding your target audience is a significant factor in getting any traction.
You need to know the ins and outs of your target audience’s lifestyle. What do they like? What do they dislike? Do they like specific types of music or television shows? What kind of jobs do they have? What is their age range? Where do they live? And the list goes on.
The more information you have on your customer avatar, the higher the chance of success you have on achieving the goals you are looking for with Facebook Ads.
The average conversion rate for a Facebook Ad is 9%, the more you know who you are trying to speak to, the better your ad copy will be, the greater chance your ad will convert the way you hope for.
So many people make the mistake of assuming they know their target demographics interests, and end up spending money targeting groups of people that have zero interest in those products or services.
In 2020 there is no excuse not to target the correct demographic. Will it be perfect, never. However with tools such as audience insights, we can literally get the exact data from facebook breaking down who to target.
For example, when we type in baseball in the audience insights search bar, facebook immediately tells us the size of the audience, what percentage are men or women, what age range is the most interested, what pages they like & have in common, location, similar interests etc.
Lastly, once you determine the interests you are targeting, you should create at the minimum 15 adsets when beginning to test cold audiences, and the only variable that should be changed is the interest itself.
Leave facebook to determine the age, gender, what placements to use, etc. There job is to make you money, if a certain age or placement works better, facebook will allocate the budget to be spent on what’s working best.
Audience size is important too, you don’t want a competitive small size and you also don’t want to have it be so broad they’re not converting. Different interests have different sizes, for example baseball has 100M+ audience size, however college baseball may only have 5M. Keep your audience size above 200k and you’ll be just fine.
We usually don’t use any cost controls when cold targeting, and we let it optimize for 7 day click or 1 day view.
Most people throw up random ad sets, targeting people they think will convert, and don’t take the necessary steps to research who they should target, resulting on money that could by multiplying, disappearing instead.
#3 You’re Not Making Facebook Marketing a Priority.
Recent studies have shown that only 58% of small businesses are spending an hour a week or less on their Facebook pages. Catastrophic!
I mean that's the equivalent to someone spending 1 hour a week playing basketball and getting frustrated that they aren’t going pro. The concept is laughable to think people can just spend little to no effort setting up a marketing campaign and expect it to print money.
I think I speak for everyone when I say I wish it were that simple, however it takes consistent dedication and research, we’ve spent over 7 figures on paid advertising already in 2020 and we are still learning, you never stop.
Marketing is understanding consumer psychology, math, sales, systems, etc. and integrating everything together to create a system and it isn’t just learned over night. Even with proper marketing there are other factors that play into it.
Just because a campaign is set up correctly and you target the right people doesn’t mean you’ll make money. You need strong ad creatives (videos and photos), ad copy (the captions) As well as retargeting campaigns set up to constantly put your products or services back in the consumers face.
With dozens of variables ranging from who you target, to what creatives you use to what ad copy you use, how well you retarget your potential customers, etc. It can become quite overwhelming to think this out let alone execute it properly when you’re trying to focus on running a business as well.
If you don’t have the time (or money to learn how) to build out a marketing campaign such as this, let alone the time to continue adding in new creatives, targeting new demographics and creating retargeting campaigns, take a look at some solutions we have available by working with our team!
#4 You’re Not Making Enough Of A Financial Investment into Facebook Ads
According to a survey hosted by Weebly, 82% of small business owners spend less than $50 on Facebook Ads in total!
Contrary to the average Small Business owner, expert marketers spend roughly 26% of their allotted marketing budget on digital marketing platforms such as Facebook Ads.
Additionally, nearly 40% of them will be increasing their ad spend within the next year.
We get it; we know that most of you don’t have a lot of money to spend. However, you have to realize that you must have a healthy budget to collect substantial data to determine what kind of ads work for your target audience.
A good rule of thumb is to never spend 2x your BEP, so for example if i'm selling a $50 product and i profit $30 off a sale, then i will allow an adset to spend up to $60. If it gets a sale i continue to let it run and if it fails to get a sale its deleted and a new adset takes its place.
Similarly, if I know that it takes on average 100 form submissions to close a $1000 deal, that means I can spend no more than $10 per form submission, which means I’d allow a cold targeting adset to spend $20 before turning it off and replacing it.
Bottom line, you need enough of an investment to spend money on cold targeting and multiple steps of retargeting to be successful, this requires capital and isn’t something that can be done with a $200-$300 dollars.
Most people make a catastrophic mistake by either not spending enough on ads and giving up before they ever spent enough to collect the proper data and see results, or overspending and not knowing when to throw in the towel and move on.
The Good News
Facebook Ads can be quite daunting if you have no idea what you're doing.
Although 62% of small business owners and counting continue to fail at this ever-evolving monster platform, rest assured that you don't have to be a part of that statistic.
Do your research and take the time to learn from others who have excelled in Facebook Ads. Realize that Facebook is a winning option to building your brand and gain more profit. It's not as hard as it seems.
You need to strategize and know what you're doing. You can't expect to succeed if you have no plan and objective in place.
Select an objective, do your research on your target demographic, test anything and everything, test not only interests, but also creatives, ad copies, etc. Have retargeting campaigns and offers to convert cold audiences down the road, learn your metrics to stay on track, and spend a good amount of time building this out.
Include a healthy allocated budget that's right for you and your business and the perfect audience in mind. Have any questions? Contact Staiber Consulting, and we will make sure you are set up for success!
We do this for a living, and have spent over 7 figures alone in 2020 marketing for our clientele, we understand the necessary steps and more importantly how to carry them out to effectively generate results and a return on your investment.
We have so many solutions available to best help you succeed, whether that’s consulting you/your team on the exact strategy to implement, or coming in and taking over the marketing efforts ourselves to build out, execute and manage your paid advertising campaigns!