Advertisers continue to see the effects of the iOS 14 update, but Facebook is still a valuable tool to reach new audiences and convert them. It is essential to keep your Facebook advertising costs low, regardless of whether this is your first time advertising on Facebook or if you want to make the most of your budget.
Billions of dollars are spent on social media advertising each year in America today. Including paid advertising on social media, games, and applications on social media, the amount reached 40 billion U.S. dollars in 2020. According to the Facebook Ad Cost Calculator, advertising on social networks will cost advertisers over 56 billion dollars by 2022. LinkedIn and Pinterest account for four and two percent of these expenditures, respectively, followed by more than 80 percent.
A closer look at social network advertising
Almost 90 percent of U.S. companies use social media for marketing purposes and will do so in the near future2. Among the hottest trends in social media advertising in 2017, social messaging and video were the biggest impact on marketing strategies. Ad spending on social video has grown ever since and is projected to reach nearly 15 billion U.S. dollars in 2021. Even here, Facebook has an advantage, especially when it comes to influencer marketing.
Most influencers, from micro-influencers to celebrities, post their videos on Facebook. YouTube is the second platform of choice for influencers to share their videos; although it is ‘the’ video sharing platform, it is still less popular due to a smaller user base.
How to low down the cost of Facebook ads?
Here are the top three tips on this topic:
1. Design a full-funnel marketing strategy
Make sure your campaign objectives are funnel-appropriate to make the most of your budget. Consideration and Conversion campaigns are best for the middle of the funnel, while Awareness and Consideration campaigns are best for the bottom of the funnel conversions.
Optimize your conversion campaigns to target people driving your purchase-driving conversion events at lower cost by starting with upper-funnel campaigns.
2. Select Automatic Placements
The best way to save money on Facebook ads is to start with the automatic placement setting. While it may be tempting to choose where you want your ads to appear, the default setting will save you money on Facebook ads.
Facebook will determine where to best serve your ads by having your ads appear on all placements. Additionally, you’ll be able to implement data-driven optimizations faster once you’ve finished the learning process.
Due to the same targeting conditions regardless of placement, Facebook will deliver ads to users at a lower volume but lower-cost location, which helps you drive incremental revenue.
3. Conduct Facebook A/B testing
In addition to A/B testing variables in your ads, you can help lower your costs at the ad level by better understanding what is working and what is not. Check the headline, images, and videos, landing pages, and more.
Because Facebook is not a set-it-and-forget platform, it is best to test and improve continually. You can improve engagement rates and CTR by running tests at the ad level and stretching your budget further.