Here’s How Facebook Ads Can Help Your Business Grow 10x
By Kamal Jacob
As a social media platform, Facebook has been the “king” in this space for several years now. By industry statistics, Facebook has currently over 2.38 billion active users of which 1.56 billion access this social media platform on a daily basis.
As a digital platform for connecting people across the globe, Facebook works just great but is this platform also effective for business growth? The statistics certainly seem to suggest so. Facebook has over 80 million pages dedicated to small to medium-sized business enterprises of which 6 million actively advertise on this platform.
Among its many success stories, the online hospitality company, Airbnb used Facebook ads to reach over 238 million people globally with a 3x increase in returns on its ad spend while reducing its customer acquisition cost by 47%.
Additionally, considering the fact that an average Facebook user clicks around 8 ads each month, Facebook ads are emerging as a strong platform for digital marketing campaigns and can no longer be ignored by any growth-seeking business enterprise.
Through this article, let’s discuss 6 benefits of Facebook ads along with real-like industry case studies of global business brands that have leveraged the Facebook platform to grow their sales and revenues.
Benefit 1 – Provides global exposure to your business
Through its business pages and ads, Facebook provides a global exposure to the brand being promoted. Among the earliest success story was the 2013 “Real Beauty Sketch” campaign by Dove that attracted over 114 million views within a month of its launch.
Another example of improving brand awareness using Facebook is that of Singapore-based Marina Bay Sands luxury resort that used the automated Facebook Messenger bot to increase chat-based conversations by 8.3x and the number of daily active Messenger users by 26x.
In addition to digital ads, Facebook supports other forms of social media marketing that enable businesses to engage with a more wider audience:
1) Business pages, which has the main medium to establishing business presence on this social media platform.
2) Facebook groups, which is a very engaging medium to interact with your online customers. Facebook users can join this group and share their experiences of interacting with the brand. Facebook groups are very effective in engaging your target audience through group discussions and personalized content.
Benefit 2 – Reduces your business expenses
Unlike a business website that costs money to develop and maintain, a Facebook page is free of cost for both small and large business enterprises. Thus, even a small or local business can create their own Facebook page to promote their products or services.
Additionally, even Facebook ads are cheaper for business as compared to traditional modes of advertising (or digital modes of advertising on LinkedIn or Instagram). Among the popular modes of Facebook advertising, the CPM (or Cost per Million) mode is charged for every thousand ad impressions while the CPC (or Cost per Click) mode is only charged when the user clicks the ad.
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While the average click-through-rate (or CTR) of Facebook ads across industries is 0.9%, the average cost-per-click (or CPC) for Facebook ads across all industries stands at just $1.72. An interesting case study is that of Los Angeles-based digital marketing agency, Low Tide Digital that targeted its Facebook ads to a user base in specific regions of Los Angeles thus reducing their overall ad spend and earning higher returns. The company achieved a Cost-per-Action (or CPA) of $4.30 with an even lower CPA of $2.12 in their best performing regions.
Benefit 3 – Improve your offline conversions
Can a Facebook ad campaign help in driving foot traffic or offline conversions? A Los Angeles-based furniture retailer that sold its products strictly through its physical brick-and-mortar stores launched a Facebook Ad campaign with high-quality photographs of its crafted furniture. The result? The campaign was able to improve the foot traffic to its physical stores in Los Angeles.
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Another industry case study is that of consumer electronics brand, Senheng that used Facebook ads targeted at customers more likely to buy at their retail stores. The result of this offline conversion campaign – A 31x return on their Facebook ad spend and 66% lower cost of conversion.
Business owners can also measure the effectiveness of their Facebook ads on offline or real-world outcomes such as purchases through physical stores, phone bookings, and much more. Through omnichannel marketing strategies, digital marketers can reach their offline target audience based on their online actions.
Benefit 4 – Target a niche audience
As much as Facebook marketing can help your business reach a wider user base, it can also enable the targeting of a niche audience based on location, gender, or specific demographics. For example, a ladies clothing retailer could target their Facebook campaign at 20- to 45-year old women who show interest in “fashion” or “clothing” styles. Global beauty brand, Yves Saint Laurent Beaute were successful in improving its reach and brand awareness of its fragrance product, “Mon Paris” with a traditional TV and Facebook ad campaign targeting young women in the age group of 20-29 years.
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Image Source: https://capitalandgrowth.org/storage/attachments/573-broad-targeting.png
Apart from targeting niche audience through a targeted marketing campaign on Facebook, advertising brands can encourage them to provide feedback or participate in online contests to improve their customer engagement. Global fast food chain, McDonald’s targeted mobile users in Malaysia to boost awareness of their food delivery app. This targeted campaign resulted in over 1 million app downloads in just 2 months along with over 3 million coupon redemptions.
Benefit 5 – Improve your website traffic
What do your users do when they come across a targeted Facebook ad? They may click on the ad, or share it with their Facebook friends, or simply ignore it.
Can a Facebook Ad redirect web traffic to your business website? Yes, it can specially with the Facebook Pixel feature that allows you to integrate your Facebook ad more seamlessly with your website. Facebook Pixel allows you to monitor and report user actions (or what they do) after they view your Facebook ads. This valuable user information can be utilized to design your website landing page, provide relevant information that your online audience is seeking, and to retarget users visiting your website.
On reaching your website landing page, users can be directed to perform a direct call-to-action (CTA) to view the product or service that you are marketing. Using the information provided by Facebook Pixels, alcohol beverage company, Diageo & Dan Murphy’s were able to direct optimized traffic to its website, thus resulting in an 3x returns in its ad spend. Another industry case study is that of Taiwan-based travel platform, KKday that used its Facebook Pixel-derived information to improve its CTR among globetrotters in Thailand and Malaysia by 80%.
Benefit 6 – Improves your business sales and revenue
Facebook Ads can definitely improve your online customer engagement and drive more traffic to your website. But, can it be effective in increasing sales and revenue? Yes, it can through launching a highly targeted online campaign that is aimed towards generating more sales leads and actual conversions. By using the dynamic and flexible nature of Facebook advertising, you can ensure that the right campaigning message is directed at warm sales leads at the right time to generate higher revenue.
By running an ad campaign on both Facebook and Instagram, Alliance Bank Malaysia were able to generate over 100,000 sales leads and double their sales with a 48% increase in their consumer loan applications. Through a Facebook Messenger campaign, recruitment company, Entre achieved a 2.3x increase in their conversion rate at a 70% lower acquisition cost for their customers.
As highlighted by these real-life industry case studies, Facebook Ads is proving to be an effective form of digital marketing for a variety of business domains. As a business owner, you can avail of these business-related benefits through a well-designed Facebook advertising campaign that can work wonders for your business.
Do you also agree with the benefits of Facebook Ads as listed in this article? Do let us know if we have missed out anything. Post your feedback on whether Facebook Ads are really useful or require any improvements. In the meanwhile, if you are interested in pursuing a career in digital marketing, don’t forget to check out some of certification courses in digital and social media marketing.