There’s A Better Way to Manage Your Facebook Marketing Cost!

Control Your Facebook Marketing Cost or Else_ - Blog

“Control Your Facebook Marketing Cost or Else!” written by Mike Marko.

Facebook marketing cost is something a lot of people don’t seem to know how to control.

Facebook marketing can be cost-efficient if you know what you’re doing. If you don’t, though, you could lose a lot of money unnecessarily.

In fact, this is the case for many Facebook users. They run ad campaigns on Facebook that seem to be producing decent results at first…

Until they realize that the costs of the campaign have already overtaken the profits from it, anyway.

If this has happened — or is in danger of happening — to you, there are ways to stop it. I’ll show you how to regain control of your Facebook marketing cost.

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Ways to Control Your Facebook Marketing Cost

Before we begin, let me regale you with a Facebook fact.

As of 2018, Facebook was the most popular social network with 2.23 billion monthly active users.  It was followed by YouTube, by about 430 million views.

That tells you there’s no end of marketing opportunities for your business on Facebook. That’s why it can also be a good idea to run an ad campaign on it.

Some people wonder if they should bother. After all, there are many ways to market on Facebook without spending a cent.

But the truth is, a Facebook ad campaign can have big benefits for most. Among other things, this is due to the targeting options the platform offers advertisers.

Due to the huge amount of information Facebook has on its users, the platform can offer near-unparalleled audience targeting. That can be very useful for your brand if you have your ideal buyer persona down to a T.

For example, you can set your target ad audience to Hispanic men in Arizona who’re part of Generation X and have a college degree. Imagine that sort of specificity being used for your ads!

This already suggests to you one of the ways you can keep down Facebook marketing cost. That is, you have to be careful when setting your target audience for a Facebook ad. Otherwise, you’ll end up spending ad dollars on the wrong people.

But that’s not the only way you can drive up Facebook marketing cost needlessly. There are other factors that go into it. For example, there’s the way you bid for your ads or what objective you set for them.

That’s why we should talk about how Facebook ads work before we get to how you can control Facebook marketing cost.

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How Do Facebook Ads Really Work?

Facebook uses a bidding process to sell its ad spaces. So instead of paying a flat rate for all ads, you’ll have to pay a rate that can go up or down based on your competition.

Let’s say Business A wants to run Facebook ads. Its target audience for these ads happens to be a demographic that not a lot of other businesses are targeting.

As a result, Business A won’t face a lot of competition on Facebook’s ad space bidding process. Its ad costs will likely be very low.

But now let’s say another company, Business B, has just entered the picture. It doesn’t necessarily sell the same products as Business A. However, it does target the same customers.

If Business B starts a Facebook ad campaign, it will likely bid for ad space on the feeds of the same people Business A is targeting.

It will drive up the cost of ads targeting that audience because of that. That means both it and Business A will have a higher Facebook marketing cost.

This is important to consider when talking about Facebook marketing cost. Failure to understand the way it works is actually how a lot of people drive up their ad spend on the platform.

There are different factors and even seasonal events that can affect this bidding ecosystem. For example, your niche may actually make a difference to your Facebook marketing cost.

That’s because some industries have a higher cost computation in ad placements. The Finance and Insurance niches are good examples.

Data shows that these two industries lead in terms of average Facebook CPC (cost per click). CPC is a measure of how much you pay on average each time user clicks your ad placement.

Customer service companies rank second. Apparel-based firms rank the lowest in this metric, with an average CPC of $0.45.

Compare that to life insurance companies’ average CPC, which is $3.77. That’s a big difference in Facebook marketing cost!

That’s just one of the things that affect the price of ad placements in the bidding system. Even the time of year is a Facebook marketing cost factor, for instance.

Data shows that Facebook ads placed during holiday seasons are the costliest. This makes sense because people are apt to spend more right about this time. Advertisers are therefore looking to present their products as options to those buyers.

Take note of things like this when managing your Facebook marketing cost for ads. If you want to further understand how Facebook ads work, click here.

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Tips on Controlling Your Facebook Marketing Cost

Now as mentioned before, there are ways to keep your Facebook marketing cost down. Even after you’ve already started a campaign, you can still tweak its settings afterwards.

That means the tips below can help even those whose ad campaigns have already gone live.

1) Target a Very Specific Audience

The more precise your audience targeting is, the better for your Facebook marketing cost. That’s because it lowers the chances of high competition.

Broader audiences tend to see high competition because more advertisers are targeting them. They also tend to be less effective for advertisement.

That’s why it’s important that you identify the audience that you want to sell your products or services. Try to do as much research as you can on your current customers to fully flesh out your ideal buyer persona.

Remember that Facebook offers tons of targeting options. Try to cover as many of them in your targeting as possible.

Here are just a few of the targeting categories offered by Facebook:

  • Hobbies.
  • Interests.
  • Politics.
  • Life events or circumstances, e.g. newlywed, in a long-distance relationship, friend of X, etc.
  • Parent types, e.g. parents of preteens, soccer moms, parents with toddlers, etc.
  • Languages.

And that’s still just the tip of the iceberg. You can also get all the usual categories like age and location.

The narrower you can make your audience, the better it will be. It’s when you define it too roughly that you’re likeliest to overlap with some other advertiser’s target audience. Then you’ll drive up your Facebook marketing cost.

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2) Choose the Right Ad Pricing Method

While most businesses reckon Facebook marketing cost for their ads by CPC, you don’t actually have to. In some cases, you may not even want to!

Keep in mind that you have other options. For example, you always have the option of using CPM or cost per mille instead.

CPM is another method of paying for online advertisements. Instead of paying for every click on the ad, you pay instead for every thousand views of it.

It may be preferable for some ad campaigns because it could keep costs more manageable. It depends on a lot of things, of course. These include your ad, the demographic you’re marketing to, the amount of competition you face at the moment, etc.

To find out whether CPC or CPM is preferable, you can try split testing your ad campaign first. This may give you insight into which one is better for your Facebook marketing cost.

3) Be Smart about Facebook Ad Scheduling

As mentioned earlier in this blog, Facebook ad placements are high during the holiday season.  This is right around the last quarter of the year.

This makes sense because people prepare to spend around this time. Since most business owners know that, they’re likely to be bidding on ads during these months.

Consider that when you’re planning your Facebook campaign. Try to pick times when you won’t be facing too much competition from bigger businesses with bigger budgets.

Ask yourself too if you really need to get your Facebook ads out around this time.

If not, why not release the ad right after the peak advertising season instead? Most ads can actually perform well enough even outside of the holidays — and won’t drive up your Facebook marketing cost either.

4) Look for Audience Overlaps

Do you have two defined audiences for your ad campaign? If so, use Facebook’s overlap tool and see if there are overlaps between them.

Doing this helps control Facebook marketing cost by avoiding you becoming your own competition.

This is something that happens a lot on Facebook. Businesses drive up the cost of ads by accident because they don’t realize they’re bidding against themselves.

What you want to do is exclude the overlapping portion of your audiences. That prevents you from falling prey to internal (and in a sense, false) competition.

If you still want to target the overlapped part of your audience, you can just a create a separate custom audience for that. That way, you still reach them without worsening your Facebook marketing cost by accident.

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Final Thoughts on Controlling Your Facebook Marketing Cost

As you can see, controlling your Facebook marketing cost isn’t rocket science. It just takes a little common sense and experience.

It all starts from you understanding that Facebook ads are auctioned. This means you can end up paying more for ads when there’s high competition for your target audience or you define it too broadly.

To recap, here are my tips again for keeping down your Facebook marketing cost:

  • Define your audience as specifically as you can.
  • Choose the ad pricing method that works best for your situation.
  • Try to be smart about timing your ad placements.
  • Look for audience overlaps to avoid becoming your own competition.

And that’s it! These should help you manage your Facebook marketing cost.

If you have more questions about Facebook ads or Facebook marketing cost, though, just leave a comment below!

If you’re still unsure of how to make a Facebook fan page or have more questions on the process, please feel free to leave a comment below or visit IM Consultant Services.

By the way, you should take a look at our “Results in Advance” program and see how we can implement Pervasive Presence™ in your business.

We start with a 30-60 minute free consultation where we together create a strategy that will grow your business¦ effectively. Its actually a strategy session where you’ll walk away with actionable steps you can take to increase your business revenue. By the end, you can either take what we discussed and run with it yourself or we can agree to work together to crush your results!

If you want to learn about how to qualify for our “Results in Advance” program, please feel free to reach out to us by clicking the button below.

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P.S. – If you like this post, feel free comment down below and/or share on Facebook.

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1. Level Up Your Marketing Through Using LinkedIn for Business

2. Why Should You Create a Facebook Company Page?

3. Proven Ways on How to Use Twitter Effectively for Business

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Author: Mike Marko
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ArticleThere’s A Better Way to Manage Your Facebook Marketing Cost!

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