Web Profits How To Use Facebook Ads To Drive Growth
Web Profits How To Use Facebook Ads To Drive Growth
Web Profits How To Use Facebook Ads To Drive Growth
Facebook Ads to
Drive Growth
A powerful tool for marketing your business
at different stages of the sales funnel.
Intro
It’s no secret that Facebook Ads are a powerful
tool for marketing your business. As of March
2016, more than 3 million companies were taking
advantage of the platform, and their spending
represented 19% of the $70 billion spent worldwide
on mobile advertising.
In practice, Facebook Ads are one of the best growth drivers for business
– possibly one of the best growth channels in general – thanks to the
unprecedented level of control the network’s extensive social data offers when
it comes to demographic and psychographic targeting.
RAs of January 2017, Facebook reached 1.87 billion monthly active users
worldwide, relative to Twitter’s 317 million, Snapchat’s 300 million and
LinkedIn’s 106 million (Instagram, which counts 600 million active users,
is owned by Facebook).
Resolving this potential conflict comes down to your ability to identify intent.
In fact, I’d argue that intent-based targeting is the most important factor in
making your Facebook Ads successful, while the ads you create are secondary,
based on the audiences you’re targeting.
With Google AdWords, intent is indicated within the search itself. On Facebook,
your path to advertising success is more complicated. In addition to identifying
intent, it’s up to you and the ads you create to build relationships and stoke
desires – all within an environment users would prefer to be free from
advertising messages.
When you launch ads on Facebook, one of the first choices you’ll have to make
is what specific audience you’ll target. You have three options for targeting
your ads by audience characteristics:
Custom Audiences
Lookalike Audiences
Core Audiences
Let’s take a look at each of these in more detail to see how they can be used to
measure intent.
Custom Audiences
Facebook Custom Audiences let you leverage your existing customer data to
target your ads towards your current customers or to people who have had
some type of measurable engagement with your brand.
Some estimates put the cost of attracting a new customer at five times
more expensive than selling again to an existing client. This is why Custom
Audiences perform better than other types of ads; you’re able to use them to
reach people who already have a relationship with your brand.
Users who have visited your website (based on Facebook Pixel tracking
data)
Ads based on these segments will perform better than ads marketed to more
arbitrary Core Audiences, as you can use them to reach those who are already
in your funnel and who have demonstrated some type of buying intent.
Customers who have purchased more than three times with you (these
are the people who are most likely to buy from you again in the future)
Those who visited your shopping cart but didn’t buy (in order to offer a
cart-completion reminder or incentive)
People who visited one or more pages on your website but didn’t convert
(in order to drive them back to the website to take action)
Those who have a specific leadscore in your CRM system (based on how
much they’re engaging with your email marketing and website)
People who purchased something from you in the past (in the hopes of
re-activating them for future purchases)
The list goes on, but these examples alone should get you thinking about all the
different combinations of website, email, app and phone data you could use to
target your ads. Just remember: Custom Audiences are where you’ll generate
leads and/or sales.
When plugged into his system, Ramondo claims to have been able to create
ads built around these Custom Audiences that have driven $163,969.49 in 43
days, off a $5,989.09 spend.
At first, JackThreads started with Core Audiences, aimed at reaching men ages
18-30 who had past Likes and proven interests around hip hop and rap music
(for example, having Liked the artist Drake).
Lookalike Audiences
After Custom Audiences, Lookalike Audiences are the next-best-converting
type of audience.
Charlie Lawrance, writing for Social Media Examiner, describes four types of
Lookalike Audiences Facebook marketers should try:
Though his list isn’t exclusive, the options above represent a good place for
most new Facebook advertisers to start.
To create a Lookalike Audience, you’ll take the same customer list, retargeting/
website data, Facebook connections or app data you used to create your
Custom Audiences and ask Facebook to create a Lookalike Audience
comprised of users who share similar qualities and characteristics.
Lower-percentage matches (starting at 1%) pull the leads that are most
similar to the members of your Custom Audience.
When you first start using Lookalike Audiences, begin with a 1% match and
increase your percentage points from there as needed (making sure to exclude
your previous audience from your next campaign). Expect that your conversion
rates may go down as your audience grows larger and their specificity
diminishes (though this doesn’t occur in all cases).
You may find that the demographics of your Lookalike Audience don’t match
what you expected from the makeup of your Custom Audience. Facebook
software engineer Ben Savage talks about how the way Lookalike Audiences
are created influences the final grouping in an article on the SumDigital blog:
The key to making Lookalike Audiences work is to use the cleanest data source
possible so that Facebook’s algorithms will match your audience with the right
people. As a rule, it’s always better to use a smaller, more accurate source of
audience data than a larger, inaccurate list.
Imagine, for example, that our athletic shoe seller decided to get into Lookalike
Audiences. If they had to choose between a small list of customers who
purchased within the last three months and an un-scrubbed list of freebie
email subscribers built over the past three years, they’re almost certainly going
to get better results from the customer list.
Now, here’s how Lookalike Audiences can work in the real world...
According to Lakhani, the campaign was able to achieve a CPC of just $0.65, a
relevance score of 10/10 and a CTR of 5%, beating the industry average of 1-2%.
Location
Demographics
Interests
Behaviors
Connections
LOCATION-BASED AUDIENCES
These are defined by users’ locations within established country, state, city or
postal code boundaries. Local businesses might use these targeting features
to ensure their ads aren’t displayed to those outside of their geographic
areas, while e-commerce sellers might use them to exclude buyers who live in
countries they don’t ship to.
On Facebook these might encompass age and gender, but might also
include things like education, employment, household/marital status and
other lifestyle details (such as generation or ethnic identification). Some of
these targeting options are only available within the U.S.; others are open to
marketers worldwide.
BEHAVIOUR TARGETING
Narrowing down your Core Audience with multiple behaviors and interests
(now possible, thanks to Facebook’s conjunctive targeting feature) can help.
Take the example of fitness pro Mary E. Fernandez, who used Facebook Ads
to promote her pregnancy fitness program, Bumpstart.
In her words, the most important factor contributing to her success was her
ability to leverage Facebook’s behavioural targeting features:
Another example from VeeRoll shows how Core Audiences can be combined
with Lookalike Audiences to achieve even greater results.
As part of their campaign, VeeRoll offered new subscribers a 30-day free trial
to the PRO version of their video ad marketing tool.
At the end of the campaign, VeeRoll had attracted 122 new trial customers in
two weeks, with an ad spend of $2,500 – all thanks to the power of Facebook
Ads’ targeting options.
You may not even need to use this many steps. You may, for example, find that
creating Custom and Lookalike Audiences based on your existing customer
data drives enough conversions to meet your advertising goals or uses all the
budget you have to allocate to Facebook Ads.
If you’re struggling to determine how and when to use each of these options,
consider the following list. Most businesses can use this sequence – prioritised
in order of effectiveness – to use Facebook Ads for growth:
Let’s briefly break down each of these funnel stages before jumping into what
they mean for your Facebook Ads campaigns:
After sales, the advocacy funnel stage involves turning new customers
into brand advocates who like your offerings enough to refer other new
customers to you.
For the purposes of Facebook Ads, we’re really only concerned about the
stages starting from awareness (we can skip exposure since, for the most part,
your Facebook Ads will be asking people to take action. In a sense, they’re
combining exposure and awareness into a single funnel stage – one that
involves both introducing your brand and encouraging new prospects to learn
more about it at the same time).
Awareness
TARGETING OPTIONS TO USE
When you’re attempting to reach consumers who are unfamiliar with your
brand, but who may be good candidates for your products or services, you
really only have two targeting options:
Core Audiences
Any customer data, retargeting or engagement data you have, upon which you
can build Custom Audiences, you’ll only have from people who are past the
awareness stage in your funnel.
WHAT TO PROMOTE
Asking new prospects to make a purchase is akin to asking your first date
to marry you. Nobody wants to be rushed into a new relationship so quickly!
Instead, you’re better off with ad content that proves your value – ideally,
content that’s given away for free and that immediately sets your business
apart from others. This may include:
Informative videos
Remember the cardinal rule here as you’re planning your awareness ads:
value, value and more value.
In later sections of this guide, exposure and awareness ads are discussed
together, as they’re often quite similar in practice when it comes to
Facebook Ads.
Consideration
TARGETING OPTIONS TO USE
Because the consideration stage involves leads who have initiated some type
of engagement with your company, you’re able to use more targeted audience
segmentation options, including:
Email list subscribers (from past lead magnets, free trial opt-ins, etc)
Website visits
App uses
Lookalike Ads are useful here as well because Facebook has matched the
audience with your existing customer data, making them more likely to
convert than any other non-Custom Audience.
WHAT TO PROMOTE
The benefits promoted by ads at this stage should be geared towards moving
users towards an eventual purchase. Depending on how complex your sales
process is (or how resistant to advertising your audience is), this may take a
number of different forms:
‘10X’ content
Informative videos
Coupon codes
If the goal of your paid Facebook Ads campaign is to drive actual conversions,
you’ll need to be especially tight with your audience targeting.
Remember what we talked about earlier.
People on Facebook aren’t there to shop. They’re there to relax, unwind and
connect with the people in their lives. Asking for a conversion – whether that’s
a sale, a trial subscription or something else – requires that you only reach out
to leads you believe are primed and ready to take action.
For this reason, you’ll want to limit your targeting to the following:
You also won’t know whether or not they’re ready to buy, as you’ll have no
behavioral data to suggest that.
Tie your conversion ads to the specific products or services your data tells you
your leads are already interested in, including:
Prompts that drive ad clicks to landing pages where your sales team can
capture leads (generally, in exchange for some incentive)
Advocacy
TARGETING OPTIONS TO USE
There are a few ways you can use Custom Audiences to find these people:
Create a Custom Audience that includes your top 20% customers, based
on sales volume
Again, this isn’t a place to use Core Audiences or Lookalike Audiences, as it’s
only paying customers that are likely to become advocates for your company.
Once you’ve identified your top customers for your advocacy ad campaigns,
consider any or all of the following promotion types:
Relationship Building
TARGETING OPTIONS TO USE
WHAT TO PROMOTE
EXPOSURE/AWARENESS
Ad content to try:
‘10X’ content
Marketing videos
Ad content to try:
‘10X’ content
Marketing videos
Case studies
Lead magnets
Ad content to try:
Free trials
Paid trials
Paid subscriptions
Lead magnets
EX: Google’s Cloud Platform offers an incentive to give the program a try:
Ad content to try:
Referral marketing incentives (or better referral marketing terms for top
advocates)
EX: Google’s Cloud Platform offers an incentive to give the program a try:
EXPOSURE/AWARENESS
Ad content to try:
‘10X’ content
Marketing videos
Ad content to try:
‘10X’ content
Marketing videos
Case studies
Lead magnets
Ad content to try:
Pushes to webinars
EX: Luisa Zhou’s ad invites viewers to learn more about her ‘Live Training for
New Coaches’ program
Image: SmartBlogger
Ad content to try:
E-Commerce Sellers
As an e-commerce seller, your primary goal is to push product (or to get
prospects to a place where they’ll be receptive to your promotions).
The following ad types will be best suited to your purposes:
ADVOCACY/RELATIONSHIP BUILDING
Product introductions
Product reviews
‘10X’ content
Influencer/experiential content
Ad content to try:
Product reviews
Product comparisons
EX: STROPS, a Slovakian fashion e-commerce seller, split tested the two ads
below to encourage viewers to learn more about their Converse sneakers:
Ad content to try:
Product sales
Coupon codes
Ad content to try:
For complete instructions on how to set up this type of ad, check out Shopify’s
complete article.
Before actually running promotions for the course, Hubbard carried out a ‘pre-
launch’ series of Facebook ads to build up Moazzez’s subscriber list. When
the two were ready to promote Moazzez’s course, Hubbard organised his
Facebook Ads into groups targeting four types of warm traffic:
All of these audiences were sent through to a landing page for the course,
using the ad below:
Leads who followed the link– progressing through to the ‘Consideration’ stage
– were then directed to a landing page and asked to fill out the following form:
Not only did the form help Design Pickle weed out tire-kickers, it gave them
plenty of demographic data on which to target future ads. Paired with a
retargeting campaign that aimed to convert these leads, the company was
able to generate $5,800 in monthly recurring revenue with Facebook Ads.
Think holistically and watch for any indication by your customers that your ads
are inappropriately targeted. Your campaigns are living, breathing entities,
and it’s up to you to make the changes needed to make them successful.
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