According to studies, there were 1.74 billion monthly active mobile Facebook users in the third quarter of 2016. As 2016 came to an end, mobile ads generated roughly 80% of Facebook’s ad revenue. A staggering number, to say the least.
Facebook ad campaigns can be incredibly lucrative in promoting users to install your app or purchase your product. But as marketers begin to recognize the opportunity in utilizing Facebook ads, the competition has become tougher. Consequently, ad costs are increasing while the market is getting saturated.
If you want to stay ahead of the competition while still meeting your budget goals, you can follow these tips to drive down the cost of promoting your app.
1. Know your objective
Facebook ads run on a cost per objective basis. Depending on the objective you want to accomplish, Facebook ads could either be cheap or expensive. Page likes are the cheapest while website conversions are the most expensive. If your goal is to get more sales for your product, you might want to focus on website conversion objective rather than just page likes. This way, you can ensure that you won’t have to pay each time a user simply likes your page (they might have not bothered to look at your product or make a purchase). Running your ads on a conversion basis fulfills your objective, boosts your sales and give you insights you can use to improve your ad campaigns.
Picking the wrong objective ruins your whole campaign. So take the time to sit down and carefully plot your next steps to avoid wasting money on a campaign that contributes very little to your company’s sales.
2. Identifying your audience
We can’t stress it enough: identifying your audience is crucial to the success of your ad campaign. After all, they are the people who will install your app or potentially buy your product! While Facebook has settings that allow you to choose a targeted audience (e.g.: country, age range, interests), don’t stop there.
Dig in a little deeper and look at different data (say, your Google Analytics data) to check which audiences or locations need to be prioritized. You should also look at your buyer/user profile to better understand and target your ideal customer. Once you pin down your target audience, you can create ads that resonate with them and reflect your unique brand identity.
3. Don’t forget to implement split testing
The reality is that most Facebook ads fail. Split testing is a great way to start at a low cost and determine which of your ads are more effective than others along the way.
Split testing is fairly simple: you run one ad and create similar versions of it with one modification – and only one! It could be the image, text, or call out action (CTA). You run the ads at the same time, with the same budget and audience, then measure which ad performs the best. Rinse and repeat.
You might be wondering, “Why modify only one thing?”. While you CAN run ads with numerous variations, it will be more difficult to know which particular element of the ad truly made a difference in results.
A good way to gauge if a certain ad is performing well, is to look at cost per install (CPI), click-through rate, and cost per click (CPC). Good rates mean that you can increase your spending and scale higher.
4. Look at the competition
At a lost on where to start with split testing? It’s always a good idea to see what kind of Facebook ads your competitors are running.
Examine which ads have high engagement and drive downloads to identify current trends you can leverage. However, don’t focus too much on trying to be like the competition as what works for them might not work for you. You can find similar elements and work with them without being a copy cat!
Direct Works Media offers Facebook ads services that can help your business grow and build your brand. Talk to us today!