How to Increase Your Facebook Ad ROI
According to a report on digital advertising by Dentsu Aegis Network, the Indian digital advertising industry is expected to grow at 32% CAGR to reach Rs 18,986 crore by 2020.
Most of this spend, close to 80-85%, continue to be held by Google and Facebook. Still, the two digital leaders can’t be more different from each other when it comes to targeting their customer base. Both these platforms have their own unique characteristics, with Facebook allowing for a lot more versatility and creativity.
Facebook Ads are ideal for targeting a very niche audience. However, more often than not, marketers fail to garner a satisfactory ROI (Return on Investment) on their campaigns. In this article, we will provide an actionable guide to understand the factors that influence ad performance and how small changes can bring about an improvement to your ROI.
Understanding the Intent
Understanding the purchasing drive of the buyer is one of the most important areas of focus for any business. As the world’s most popular search engine, Google routinely sees visitors with high purchasing intent – consumers turn to Google to search for a solution to their problem or to research products and companies before they make a purchasing decision. On the other hand, Facebook is a media consumption platform. As a result, Facebook users tend to be less purchase-driven.
This is not necessarily a bad thing. Since Facebook users are primarily looking at consuming media, their engagement rates tend to be quite high. As a matter of fact, studies show that consumers engage better on Facebook ads than on Google Adwords.
This difference in purchasing intent should define your marketing strategy and subsequently the kind of ads you run on the platform. So, while you may have direct CTA (Call to Action) based ads on Adwords, you may see better results running brand awareness related campaigns on Facebook. Alternately, since Facebook is a media consumption platform, you may also look at promoting lead magnets that can help you capture a targeted list who may then be nurtured and converted over time.
As a social media network, Facebook captures hundreds of different data points about each user. From an advertising perspective, this can be a goldmine since your campaigns can target truly niche groups of users. In other words, your campaigns do not have to appeal to all your target users at once. You may create a number of highly targeted campaigns reaching out to specific sub-groups within your target group.
For example, the target audience for BookMyShow, India’s largest entertainment central consists of all Indian internet users who book tickets online for movies, plays and other events. A BookMyShow campaign for movie tickets do not have to target all movie-goers. Instead, you could further filter your audience based on the actors they like or the kind of movie genres they enjoy. In addition, filtering by demographics like age – for instance, targeting animations to younger Facebook users and War Dramas to older audiences, can help save you time and budget. Such a niche approach helps you appeal to a greater share of viewers, thus contributing to higher engagement and conversion.
Since Instagram was acquired by Facebook, targeting can go beyond just the Facebook platform. As a matter of fact, Facebook lets advertisers target users on both these platforms through the same campaign. That can however be a mistake since users do not necessarily behave the same way on both platforms.
In addition to this, each of these platforms have unique targeting features that make them powerful. For instance, hashtags play a much bigger role on Instagram than on Facebook. In fact, there are some hashtags like #picoftheday, #like4like, and #instagood that are not only specific to the platform, but have also proven to bring higher likes and engagement for your ads.
It is thus important to NOT merge your Instagram campaign with Facebook simply because it is possible to. Keep your Facebook campaigns separate from others as different platforms require different targeting and advertising techniques.
Creating Viral Content and Telling Stories
India has the highest number of Facebook users globally as of October 2018. The country has a whopping 90 million more users than the United States which comes in second with a total of 204 million registered users. Given the sheer popularity of the platform, viral marketing is an unmissable aspect of Facebook marketing.
While it is technically possible to boil viral marketing down to science, there is no real guarantee that your campaigns will succeed all the time. This is why it remains as one of the lesser used formats. Nevertheless, the potential rewards from a successful campaign make viral marketing lucrative as even one viral hit can give your campaign a boost like none other.
Storytelling is a critical component of virality and can in fact beat production value many times. Invest your resources in identifying the finer aspects of what tickles your audience and use these lessons in building content that can potentially go viral.
Bonus Tip: Watch this free on-demand Webinar on The Secret to Viral Video Marketing for actionable tips to create viral content campaigns.
Avoid the Salesman Temptation
A routine mistake that a number of marketers commit is to be too desperate in their campaigns. While conversion is what each marketer strives for, it is not always possible to make your customers move faster through the funnel. What you could however do is to make the process smoother and seamless so that you could move more visitors into leads, and ultimately into paying customers.
For instance, consider this Facebook ad campaign from NNNOw, local online retail store.
Here, you see an ad for apparels with attractive discounts and a ‘Shop Now’ CTA. At the outset, this seems like a great ad since such impressive discounts is sure to get more conversions.
From a user perspective however, it may not always work. Viewers of your Facebook ad are not necessarily in a shoppers’ mode. While such discounts sure get noticed and may result in a lot of clicks, they may not necessarily convert to customers.
The success of this campaign depends on what lies next. Do the advertisers capture the leads and nurture them with similar discount campaigns over email or SMS? Or, do they take the visitor straight to the store? While the latter is more tempting as a marketer, it is important to resist the urge and focus on capturing the lead first. This ensures a higher conversion per campaign.
Using the Right Tools
Facebook provides its advertisers with a lot of tools to help improve conversion rates. From hosting a store within the platform to integrating your campaign with Messenger Ads, there is a wealth of alternatives to suit every need and budget.
The ingenuity of Messenger ads is that a simple tap on the timeline transforms into a more personalised chat in the messenger app, which then leads to better conversion.
Facebook Lead ads are another brilliant and easy way to capture user data through pre-populated forms that are easy to fill by the interested customer through mobile devices. With your emphasis on making the process smooth for customers, tools like Lead Ads minimise resistance and thus boost up your conversion rates.
Facebook Ads remain an excellent way to get information about your business directly to the target customer in the most positive way possible. The strategies provided in this article will help marketers understand their users better and implement tweaks that will go a long way in maximizing the ROI of your ad campaigns.
Managing multiple social media accounts for any company doesn’t have to be as complicated as it sounds. By making use of professional tools such as Meltwater’s media intelligence tools, it is possible to integrate all aspects of social media efforts in one place. From keeping track of competition to discovering what works and what doesn’t through accurate measurement, there is a holistic approach to the product that covers various sections of the business. These tools can increase conversion by using social media influencer marketing, mobile apps, complete media analysis and, of course, organising all of the insights into understandable reports.