Indeed, social media has been instrumental since its advent in significantly transforming the way business enterprises used to operate. Facebook, the most popular social networking site, is a boon to everyone, including individuals, non-profitable organizations and businesses. A robust presence on this platform can positively impact your business bottom line if you are wondering what is a good ROI for advertising.
Staying well abreast of the latest social media trends is imperative if a business wants to stay in the game in a highly competitive market. And at the same time, employing the most effective techniques to bring your business in front of your target audience is indispensable at present. So, if you already have a business profile on Facebook, it’s time to make the most of the Facebook Ads.
Personalized Ads Help Generate High ROI
Currently, more than three million business organizations actively promote themselves on Facebook. They do so to improve visibility, brand awareness, leads, sales, profits and revenue on investment. However, drawing the attention of the target consumers and connecting with them can be immensely difficult if a business does what its competitors are doing.
Look, anyone can run Facebook marketing campaigns these days. But, coming up with some unique marketing strategy can only help your business stand apart from the competition. Keep in mind that Facebook is entirely user-based, which is why the constant changes in its algorithm are bound to happen. So, what matters the most is whether a personal touch is there in your company’s FB ads.
When your marketing efforts are all about the creation of personalized ads, increasing social media engagement becomes a lot easy. You have to leave no stone unturned to ensure you successfully convey your brand message through advertisements to those who matter most to your business. Facebook ads contribute 10% of the total conversion rate of a business.
Personalizing ads means addressing the typical problems your potential customers encounter as well as providing them with the appropriate solutions. Do so to quickly grab their attention and augment their interest in your content. Seek assistance from a trusted social media marketing agency if you are unable to set up the marketing budget on your own.
Advertising ROI: What is It?
ROI stands for return on investment, and it matters a lot because it is a key performance indicator for determining the success of a business. Marketing ROI, in simple words, is the amount a company gets in return after investing in a marketing or advertising campaign. Continuous monitoring of ROI facilitates businesses to assimilate which marketing strategies are working the most and bringing in the best results.
It is of utmost importance to keep measuring return on investment in Facebook advertising to invest strategically, manage the budget efficiently and impact the bottom line. If you run multiple ad campaigns on Facebook simultaneously, calculating the ROI of each will help you differentiate between the effective and ineffective ones with ease.
How Crucial is ROI in Advertising?
You will clearly understand what is going on as per the plan and what areas you need to improve when you gauge and analyze your Facebook advertising ROI. It is sensible to focus more on those marketing actions proving more profitable than others.
You can better identify which advertising campaigns are catching your target audience’s attention and compelling them to interact when measuring ROI results. Analysis of the return on investment helps a company optimize or modify its marketing efforts and add to its profit.
Catering to the needs of potential consumers becomes an effortless task once you understand how they behave with your business ads, besides their likes and dislikes. You can improve the advertising strategy significantly, creating the best impact on prospective customers.
Over 70% company from outside the United States use Facebook ads. The sole reason is that these companies consider it a low-cost and highly effective marketing strategy.
What is a Good ROI for Advertising?
It is quite easy to understand that a good ROI for advertising is definitely one capable of exceeding the expenses of an ad campaign. In addition, a good return on investment implies that it can produce easy-to-measure benefits for a company or organization.
It’s essential for a business’ marketing team to keep track of revenue generating as well as outgoing advertising expenses. Whether an ad campaign on Facebook is profitable is easily understandable when you carry out a thorough analysis of the aforementioned key factors.
What Would You Call A Decent ROI for FB Ads?
Determining whether it’s a decent return on investment for Facebook ads depends a lot on the ad campaign type. If you are contemplating what is a good ROI for advertising, know that usually, a good ROI would be between 8.5-10x. Simply put, you can expect at least $8.5-10 in return for every $1 invested.
However, this is not the case for every business as well as the campaign. Seasoned digital marketers can ensure that the marketing dollars you spend on ads help you make great profits. No business, a small one or a big brand, wants to get a low amount of money in return on their investments.
How Should a Business Measure ROI on FB Ads?
The involvement of a lot of variables makes the calculation of the return on investment a bit challenging. But if you can make an informed decision, you can easily divide the task into more straightforward steps. Firstly, calculate the total marketing spend for ad campaigns on Facebook. Make sure you include all expenses related to ad creation and placement.
Secondly, measure how much of the total investment you can recover through sales that happen because of the ads on Facebook. In short, calculating Facebook ads ROI requires dividing the generated revenue from the campaigns you run on the social media platform by the ad spend. Facebook ads ensure an average return on investment of 152%.
Keys to Successfully Increase ROI with Facebook Ads
Know Your Target Audience Well
One of the most crucial things to do is extensive research before creating and running an ad campaign on Facebook. You can reach out to the right potential customers and engage them better when you are well aware of their demographics. Most businesses prefer doing a sketch of a buyer persona in a detailed manner.
Aside from the age of your target group, it is necessary to clearly know their lifestyle, choices, behaviors, interests, etc., to satiate their needs and boost ROI. Use the Facebook Insight Tool to gain insights into your prospective consumers. You can only give someone exactly what they require only when you know their preferences or likes.
Communicate Your Brand Story through Ads
One of the main purposes of running ad campaigns on a social networking platform with a staggering 2.963 billion monthly active users is to communicate the brand story and message. The possibilities of increasing the conversion rates are more when you succeed in communicating your brand story to your target audience in a flawless manner.
When your prospects can connect with the story you tell through ads, they will show more interest in your brand. Eventually, there will be growth in the sales of your products or/and services. It does not take much time for a brand to build an emotional connection, bond with customers, and strengthen good customer relationships. Ultimately, your marketing efforts will help boost ROI.
Advertising Strategy Optimization
It is paramount to work on optimizing your Facebook advertising strategy to make your business stand out and contribute to your revenue growth. A business can reach nearly 2.11 billion people through Facebook ads. Make your target audience the most crucial part of the process of optimizing Facebook ads.
Focus on creating ads that are relatable to your potential customers. The Facebook Audience Insights tool can give you access to your target audience-specific data, and you can accordingly optimize your ads. Place your ads on Facebook Messenger as ad placement on this separate direct messaging app can increase the reach of your ads. Around 89% of adults use Messenger daily.
Focus Only on Conversion Ad Campaigns
Facebook allows business owners as well as marketers to make a selection from 11 different kinds of ad campaigns. However, what’s vital is to spend on ad campaigns tailored to your company’s goals. It is prudent to pay attention to using conversion ads, which have more potential to boost sales and return on investment.
Retargeting Campaigns Prove Beneficial
Not everyone who lands your site for the first time will end up becoming your customer. Count this as a good sign and begin running retargeting campaigns, as they can prove immensely effective in increasing your ROI. Whoever shows interest in your content and visits your website but leaves without making a purchase will be reminded of your services and products.
Often users leave the sales funnel at a particular stage, and retargeting ads can bring them back. Taking the proper steps can help you compel them to reach the sales funnel’s finish point. You might retarget a user several times so that they feel more interested in your offerings.
In comparison to display ads, people click retargeting advertisements 76% more. Making the most of Facebook Retargeting ads will help you significantly increase your Facebook return on investment.
Harness the Potential of Facebook Video Ads
Using visuals can literally turn things in favor of your business. You are missing out on a host of profitable things if you are not using video ads on Facebook. In the Facebook newsfeed, video advertisements take up a very special position. Many brands count on video ads because this helps draw the target audience’s attention promptly and drive qualified traffic.
The number of users on Facebook who watch video content is increasing with the wide availability of smartphones and internet data at a low cost. Aside from positively contributing to reaching growth, you can express your brand message and thoughts better through video advertisements. There is no better alternative to video ads at present if you wish to increase sales conversion rates and boost Facebook ads ROI successfully.
Relying on a professional social media marketing agency with many years of experience is sensible. Do so if you want to increase your business ROI the way you desire with Facebook advertising.