Gambling with Facebook Ads: How to Win Against a Stacked Deck
It’s guest post day here at Duct Tape Marketing and today’s guest post is from Claire Pelletreau – Enjoy!
“Facebook Ads is just like gambling! I got this rush every time I looked and saw that my numbers had gone up again!”
Not everyone has this reaction to Facebook ads, especially their first time out of the gate. Running paid campaigns can also bring about that crushing disappointment of gambling: your money runs out and you’ve got nothing to show for it.
But you have a lot more control over the results of Facebook ads than at the Blackjack table, so this investment could be the very risk your business should be taking.
Put List Building on Autopilot
List building is one of the easiest (and cheapest) pieces of marketing to turn over to Facebook Ads. It isn’t hard to entice people to click on an ad that offers something of value to them, especially if it’s free. A collection of 50 green smoothie recipes? Yes, please. A free guide to getting bumped up to business class on every flight? Hook me up. Even if I’m on Facebook just to procrastinate or see what friends are up to, I’ll click on your ad if it offers me something useful.
And when you combine a compelling ad with a great landing page that converts – You just hit list building pay dirt. You can use ads to drive traffic to your landing page around the clock! But make sure you pay attention to the right numbers before you even launch your campaign.
The “Fine Print” of Running Facebook Ads
It’s important to remember that Facebook is the dealer here. He knows how to wrangle your chips away from you, even if it still seems like you’re winning. Let me give you an example:
One of the best ads to run is the Promoted Page Post ad. These ads can show up in your Newsfeed with the little word “Sponsored” at the top and bottom. If you don’t spot that “Sponsored” word, you can easily confuse these ads for posts from pages you forgot you liked in the past. You can comment on this ad, like it, share, and click on the photo if it has one.
So let’s say you’re showing me a hilarious photo of a hipster cat with glasses. Chances are I’m going to click on that photo to see it full-size. Then maybe I notice your image caption talking about funny cat videos, and a link. The hope is that I click on the link and head over to your site.
Here’s the catch, though: Facebook just charged you for 2 clicks. It doesn’t matter whether I sign up for your cat-laden newsletter, or if I ever return to your site again. You get billed for both of those clicks.
This may seem like nothing when you’ve got a super high CTR (click-through-rate) and these clicks are costing you $0.33 each. But imagine that for every click through to your landing page, you’re paying for 2 clicks ($0.66). And you have an opt-in conversion rate of 25%, meaning 1 out of every 4 people who visit actually sign up for your newsletter.
So you spend 2 x 4 x 0.33 for one email sign-up: $2.64.
This is not necessarily a bad cost-per-conversion. It is, however, far from the $0.33 cost-per-click that Facebook had you focusing on.
“How can I keep my cost-per-conversion down?”
There are a few ways, but the easiest is to use Facebook’s Optimized CPM (oCPM) bidding option. This means that Facebook will show your ad to people who are more likely to take a specific action based on their previous behavior on Facebook. So if you want to get people to like your page, you choose that option and Facebook will supposedly make it happen. If you want people to click through to your website and check it out, maybe read a blog post, you can choose to have the ad optimized for link clicks. If you want someone to go from seeing your ad to signing up for your list, you choose the “website conversion” option.
“But Optimized CPM gives me a crazy expensive Cost Per Mille!”
It looks that way. Compared to those ultra-cheap cost-per-click numbers you’re used to seeing, a $12 CPM (or cost per 1,000 impressions) looks like it’s Facebook’s way of hitting you where it hurts, and hard.
But before you go back to CPC bidding, you have to do the math.
Let’s go back to the earlier example where your cost-per-click was $0.33, and you needed four people clicking on your ad twice to nail one email sign-up. You’re paying $2.64 per conversion.
If Optimized CPM shows your ad to people who are more likely to opt in to your newsletter, the conversion rate on your landing page should get a bump. If that bump can bring your cost-per-conversion down to less than $2.64, who cares how much your Cost Per Mille is?
So give Optimized CPM a try for your next lead generation campaign. In order to choose this option you’re going to need to have conversion tracking set-up and use the Power Editor to choose all the correct options.
Enjoy the rush of watching your list grow and even the sweet agony brought about by a painfully-low CTR. Don’t go all in on your first campaign – there are so many different ways you can “win” by testing out different versions of your ads.
And stay away from using photos of cats in your ads – there really is such thing as ad images that are too good.
Claire Pelletreau is a Facebook ads consultant and confessed conversion junkie. She’s been playing with Facebook ads since 2011 and sharpened her skills running paid campaigns for Laura Roeder’s five and six-figure launches. Now she applies everything she learned to helping other small businesses bring in more subscribers and sales than they ever imagined.
Get more bang for your advertising buck – click here to grab Claire’s free step-by-step guide to list building with Facebook ads!