E-commerce is increasing rapidly and, with it, so has ad competition on Facebook and Instagram. There are more than 7 million advertisers on Facebook and more than 2 million on Instagram. As more businesses work to attract consumers’ eyes on these platforms, marketers must learn to compete.
But what does it take to be competitive?
Knowing Your Audience Inside And Out
The term “know your audience” seems simple enough. However, what exactly does it mean to know your audience? What are the crucial elements to know in order to spend advertising dollars effectively?
Businesses need to proactively identify pain points and then design a marketing message that walks prospects through the sales funnel to address their customers’ actual questions. Building ads that speak to users at the top of your sales funnel and the bottom can be challenging, but crafting messages that speak to these two audiences can greatly impact your ad conversion.
Cold Traffic: Top Of The Funnel
All Facebook ads targeted to your cold audience should focus on describing with clarity how your product solves their existing problems. Create a short 10-second video addressing your customer’s pain point, and then follow up with a definition of how your product is the solution.
Leverage video ads at the top of the funnel. According to one study, 70% of individuals who view a company’s Facebook video say they often proceed to visit the company’s website.
When developing cold traffic ads:
• Place a high value on educating clients instead of going straight to the sale.
• Utilize video to showcase the physical features of your product.
• Clearly describe who this product is or is not made for.
Warm Traffic: Mid/Bottom Level Of The Funnel
Once individuals are familiar with who you are and what you sell, help them to feel comfortable with buying from you and address any concerns they may have if they buy from you.
Capitalize on the warm traffic by retargeting users with a video ad designed to spark excitement into your services. Make it easy for them to become a customer and offer an irresistible offer.
Retargeting ads may include:
• Dynamic product ads.
• Compelling discount codes.
• Carousel ads featuring top-selling products.
• Client testimonials to boost social proof and trust.
• Urgent messaging hinting last-chance offers.
Understand How Facebook’s Algorithm Impacts Ad Performance
Facebook’s learning phase algorithm requires time to gather enough information to help deliver ads to users who are most likely to engage with your optimized event. In order to get the information necessary, your ad sets must register 50 optimization events after starting to run.
Once enough data has been collected, the ad set will be running as stably as possible, and you’ll be able to make an informed decision about your ad set’s performance and potential.
It’s critical that businesses allow the algorithm to run its course. Expect your ads to cost more as it works to understand what audience members are most likely to convert, but once your ad has reached specific conversion targets, the algorithm will adjust the delivery to users who are more likely to respond favorably. After the learning phase is complete, you may see significant improvement in performance.
Take Advantage Of Facebook’s Campaign Budget Optimization Tools
What is the difference between conversion optimization and campaign budget optimization?
While you’re setting up Facebook ads, you will work with built-in conversion optimization tools designed to show your ad to the best people in the audience based on conversion data. This style of optimization is based on the learning phase we mentioned earlier, and this specifically impacts ads on the ad set level.
Campaign budget optimization is a different optimization tool. Instead of optimizing for who to display the ad to within each audience, it considers what audience to allocate the most budget to.
Working in combination, these two optimization tools can help target the right audience and divide spend to the most lucrative campaigns. This means you no longer have to designate specific budgets to ad sets. Instead, you designate how much you want to spend for the entire campaign, and Facebook will use its algorithm to manage the budget of your ad sets and what audience will receive the message.
Collaborate With Content Creators
With social media becoming a more competitive landscape, it is critical to find influencers who can not only work to create compelling content for you but who are also looking for a long-term collaborative agreement. You’re likely to find more success working with influencers when approaching them as content creators for your brand rather than working with someone who agreed to get paid to post once and be done.
Content creators can build strong organic content to be shared with their engaged fan base. Having a long-term collaboration that encourages multiple posts from the same influencer creates long-term brand awareness, social proof and trust among their followers.
As the advertising marketplace continues to expand, it’s crucial businesses learn how they can effectively optimize their paid advertising efforts. Understanding how Facebook advertising tools can assist with conversions and budget allocation will save you time and money. Pair these efforts with influencers who provide exceptional content, and your brand may begin to generate profitable social buzz.