Promoting your product, service, or brand on Facebook can be very expensive. You often see reports of many advertisers who spend thousands of dollars every day on Facebook ads.
They don’t just spend such a huge amount of money on Facebook Ads for free, they do so for mainly two reasons:
- Facebook Ads works
- Facebook Ads is cheaper than other advertising networks.
Facebook Ads convert so well that, many companies have stopped advertising on other networks and have channelled their attention toward Facebook.
Companies now spend fewer dollars per conversion on Facebook as compared to other advertising platforms. And because of the low cost, they spend per ad, companies are able to save some money and use them to further expand their reach on Facebook and get more audiences to either buy products or visit their website.
If you are interested in knowing how these successful Facebook advertisers are able to reduce their ad cost, then continue reading, because, in this blog post, I’m going to share with you 6 Techniques to Reduce Facebook Ad costs. All these techniques have been tested and verified.
However, if you are new to Facebook ad marketing, I advise you read this article that explains in detail What Facebook ad marketing is.
If you already run a Facebook ad and looking for how to optimize your ad for success, then I recommend you check out this article that states 10 Best Practices For A Successful Facebook Advertising: How To Optimize Your Facebook Ad For Success. With all this said, Let’s begin with today’s topic which is;
6 Techniques to Reduce Facebook Ad Cost
1. Set a Bid Cap
Setting a bid cap is very crucial when you want to control the total amount of money to pay per bid or action that your target audience does. However, if you’ve set a specific amount and you already have an idea of cost per action, then you can use that as your bid cap.
Let’s take this as an example:
If your daily budget is $20, and your purpose of the campaign is to get people to click on your ad and go to your website to purchase a product selling at $100, where your profit is $50 per sale.
Let’s say based on your past customer behavior on your website, you got an average conversion rate of 10% which is pretty great because out of every 10 visits to your website 1 person makes a purchase.
With this profit margin, you can set your bid cap at $0.50, Facebook will then charge your account a maximum of $0.50 per click your ad gets.
With a $20 budget, you will get at least 40 clicks to your website. This shows that, with your 10% conversion rate, you are going to make 2-4 sales which means $100 to $200 per every $20 you spend on an ad.
When you are able to identify the maths behind your ad campaign, it will help you to optimize your ad at any stage of your campaign.
2. Get More Engagement with your Advert
Getting more engagement with your ad is one of the best ways to reduce your ad cost. However, this is easier said than done. The goal of every advertiser is to get the highest possible conversion rate and make sure all our targeted audience takes a look at our ad. But it turns out to be the other way round.
People don’t go on Facebook to interact with ads, but they go on there to socialize with family, and friends and probably make new friends. So for you to get people to interact with your ad, you will need to be more creative and think beyond the surface.
Before you send an ad live, ask yourself, if you were your targeted audience would you stop scralling and look at your ads? be honest with yourself.
If your answer to this question is “yes”, then kudos your ad may be good enough, but if your answer is “no”, then you would have to sit back and restrategize before coming back to give it a try.
However, if you work alone, then I advise you to ask a friend’s opinion on what might work best, but if you work with a team, then you are lucky because two or more heads are better than one, as said.
The key point here is that you should brainstorm on how you can grab the audience’s attention. Jot down everything and take them one after the other.
3. Do Giveaways
Consider giving out valuable stuff to your targeted audience for free because people like free stuff. When they see that you give them valuable items for free, then they develop that mutual love for you.
Now, the big question is, what kind of free stuff can you give out?
There is numerous free stuff you can actually giveaway to your audience, however, this also depends on your niche or industry. As a digital marketer, some of the free things you can giveaway are; Ebooks, SEO tools, and some free tutorials maybe on your social media handles, such as Facebook page and groups.
Before you do any giveaway, is important you first know who your targeted audience is in other to give them the right item at the right time. For example, if your targeted audience is mothers of 1-3years old kids, then you have to think of something that will grab the attention of these mothers.
If you market mommy or baby stuff, then you should consider giving away a free tutorial on how to potty train toddlers or probably how to lose postpartum weight. However, the product you are giving out should relate to what you are selling.
4. Target Existing and Lookalike audience
With Facebook’s advanced retargeting tools, there is simply no better audience to target than an existing and lookalike audience.
The existing audience is so important when it comes to reducing your Facebook ad costs because these are groups of people who are already aware of your brand or services. This is better because you are targeting new audiences that know nothing about your brand meaning there is a possibility they will ignore your ads and scroll on.
On the other hand, the Existing audience has already interacted with your brand either offline or online, this will bring a familiarity between your brand and this audience, so is much easier to sell to them and get them to engage with your adverts.
The keynote here is for you to strategize on how to get your existing audience to engage with your brand again. This could be by re-introducing your brand to them in other to put them at ease. Once you are able to get a group of existing audiences that engage positively with your advert, then you can create a lookalike audience so you can reach more similar people.
5. Split test your adverts
Don’t feel comfortable with just one or two ads only. if you are really determined to see the success of Facebook adverts, then you need to invest more money in it first. One of the greatest investments you can make on the platform is by running the A/B test frequently.
When split testing ( A/B test), you should take note of which images work best, which headlines, and which product.
When running the A/B test, make sure that you are testing one element at a time, so you can easily detect if an element is working for your targeted audience or not. if you test two or more at the same time, you will end up messing up your split test, and you won’t be able to gather many ideas to prove if it was Element 1 or 2 that worked or flop your adverts.
Once you are able to finally detect a winner, you can easily scale your ads and reach a wider audience. This will also help you in feature campaigns because you already know what works for you or not.
6. Utilize Video Ads
Most advertisers ignore the fact that video ads are the best secret of successful marketers who spend a fraction of a penny for each video view. Nonetheless, not all types of ad campaigns are going to benefit from video ads, but for those who do, you will benefit from it big time!
Video ads turn to convert better because, when people come to social media, they are not ready to do any hard work, they just want to relax and just be scrolling through the news feed. This is where video ads shine – all they need to do is click on the play button which the majority has already set on auto-play, sit back and watch your videos!
I often hear marketers saying that while video ads are terrific for engagement rates, it doesn’t translate into sales directly. No argument on that, but this actually depends on the niche or kind of product or services you are offering.
The main point here is that you can possibly get 1,000 views on video ads with just 1$, there’s no simple method to achieve this kind of ad spent on any advertising platform, not even Facebook.
I assure you that after you apply all these 6 techniques you’ve read in this blog post, watch your conversion rate increase and your ad costs decrease drastically on your next ad campaigns!.
If you find this article interesting, do not forget to share it with your friends and also let’s know how you’ve managed to reduce your ad cost in the past.
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