Facebook Ads vs. Other Advertising Options:
Should You Choose Facebook Ads For Your Company’s Success?
Have you ever wondered if you should consider advertising on Facebook and, if you have, you’ve probably wondered if it was worth it and what the cost is?
Many people ask themselves these questions.
Facebook has changed in the last several years to become an effective marketing platform, and business plans have definitely taken notice. Have you thought about using Facebook for your business and its advertisements? You’re probably hoping the ads are going to be less expensive and results are better. And, good news! It’s an affordable, effective way to support your business on the Internet.
What Kind Of Cost Could You Expect For Your Facebook Ads?
What kind of money could you expect to shell out for your WhatsApp or Facebook ads? AdEspresso has a regular quarterly report it runs for the Facebook ads cost, which offers some wonderful data. An average click for a Facebook ad will cost about $0.27, which means 1,000 impressions is going to cost around $6 or less. But, what you need to understand is that the CPC information isn’t the end all, be all for Facebook advertising value. It doesn’t tell you about everything.
• Are the clicks becoming conversions?
• Are the conversions becoming sales?
• What kind of return-on-investment are you getting from the Facebook ads?
Cheap clicks that don’t generate profitable revenue is not doing you or your business any good. It’s why many people use a Google AdWords agency, although the average click is about $2.32 – some clicks cost as high as $200.
When talking about online marketing, what matters more than cost is the profit.
Another thing to consider is who you are advertising to:
• B2C – People (cost per click is $0.90)
• B2B – Businesses (cost per click is $3)
Bear in mind that these are only averages, which means your CPC could be lower or higher than the above numbers. However, they do provide you with an estimate if Facebook ads are worth trying for your business.
For instance with statistics, if you have an average conversion rate – one percent for B2B or three percent for B2C – here’s what you could expect for your cost-per-conversion:
• B2B – $300 per conversion
• B2C – $30 per conversion
If a lead or sale leads to $30 or $300, then it’s obvious that Facebook ads may be the way to go for your business. However, if it appears high for you, then you may not want to go with Facebook for your advertisements.
Facebook Ads: Is It Worth Getting Involved With?
Here’s a reality to keep in mind: although you may have a good cost-per-conversion, it doesn’t mean you should invest your money in a Facebook campaign. Here’s a campaign example:
• Client gets 14,472 unique clicks with a cost of $0.62 per click. Their checkouts are 2,001, and they spent $8,964.35.
Does the campaign look profitable to you? Can you even tell? Sure, they spent thousands of dollars. What you don’t see is how much revenue the client gets for every dollar they spent, which is $4.75. If you spend over $4 for every $1 spent on ads, it’s a profitable campaign.
Take a look at this client’s campaign:
• Client has 1,511 clicks with a cost of $1.37 per click that leads to 624 checkouts. The client spent $2068.91.
Looking at it, it appears the CPC is double the previous company’s CPC, which means their ROI would be worst, right?
Actually no! And, that’s because the client attained $8.25 for every $1 spent on Facebook. Although the CPC is two times more than the CPC for the first company, both companies are profitable.
Yes, Facebook’s cost-per-click option is less expensive than other social media tools and advertising platforms you could use on the Internet, but the decision to use it or not is not dependent on the CPC but the ROI.
Should You Consider Facebook Advertisement For Your Business
Here’s some good news – you don’t just get inexpensive clicks with Facebook. If you create a proper campaign, you can produce high-quality clicks that give your business some value. And, because of this, your Facebook ads tend to be far more profitable option to advertise your business than other methods.
Here’s an example of a business who’s been using Google AdWords statistics. Their campaign with AdWords has been doing quite well, but they considered if Facebook would be an option for them to reach more people.
• There was a 20 percent higher click-through rate
• There was a 70 percent higher conversion rate
• 77 percent lower cost-per-conversion
Does this mean Facebook ads work? Yes, they can! With a low CPC, you don’t spend much to see high returns for your business.
What Does It All Mean?
The best Facebook PPC agencies and Facebook marketing experts success hinges on profitability, not cost. And, for the majority of businesses, a Facebook campaign translates into success. You can attain high-quality clicks, conversions and sales that don’t cost your company an arm and a leg.
Have you been thinking it’s time for Facebook advertising for your company? If so, there’s no reason for you to wait any longer.