For the last two years, there has been an unsettled debate in the digital marketing world about whether Facebook ads are worth it or not. We are at a crossroads where Facebook (now known as Meta) has been in the eye of the public for various reasons, announcing a complete rebrand, a decrease in users, and Facebook ad customers seeing an increase in ad costs. So it’s no wonder marketers are skeptical about using the platform to generate leads and grow their business.
It is becoming increasingly common to hear small business owners and other marketers complain about wasted ad spend as Facebook ad competition heats up. There’s frustration because they feel like they are throwing money down the drain on useless ad campaigns that don’t generate any leads or conversions.
So the big question is: Are Facebook ads worth it?
While all of these recent ring true, we can’t forget that Facebook still has 2.9 billion monthly active users – that’s 36.8% of the world’s population! Despite the concerns and small dropoff in the average number of users in the past three to six months, the average American still spends 33 minutes daily on Facebook, making it the most active social platform in the States.
Are Facebook Ads a Good Fit For Your Business?
When evaluating if Facebook Ads are worth it, a business must first consider the goals of an ad campaign. Whether it’s general brand awareness, lead generation, or website clicks, each goal will have a different value. Determining the end result before the campaign begins will help assign a value to each lead or click generated from the ad.
The second factor to consider is money. How much are you willing to spend on an ad campaign? The average cost-per-click (CPC) for a Facebook ad in the United States is $0.97, but this can differ based on various factors, such as the type of ad, the industry, and the target audience. While this number has increased over the last few years, it remains highly competitive among the various platforms and alternative methods for lead generation.
So why should marketers use Facebook Ads?
Laser-Focused Audience Targeting
One of Facebook’s most powerful features is its ability to laser-focus your audience. You can target people based on interests, demographics, behaviors, and life events.
This level of targeting ensures that your ads are seen by people interested in what you have to say or sell, making them more likely to take action.
Highly Visual Platform
Another reason Facebook Ads are so popular is that the platform is highly visual. People are naturally drawn to images and videos, making them more likely to stop and look at an ad than if it was just text.
Plus, with features like Carousel Ads, you can showcase multiple products or services in a single ad, giving people a better idea of your offer.
Despite the concerns about rising costs, Facebook ads are still relatively affordable, especially when you compare them to other types of advertising. You can set a daily budget and choose how much you want to spend per day on your ad campaign. You also have the option to run your ad continuously or for a set period.
Lead ads on Facebook make it much easier for potential customers to provide you with details, no matter what device they’re using. For example, a lead ad form that appears natively in your feed allows customers to request information about goods or services and schedule appointments.
Using a Facebook pixel, you can watch what users do after seeing your ads on different devices. For example, you will see who converts on your website as a result of watching your Facebook ads by adding a Facebook Pixel to the pages on your site where conversions happen.
You have full exposure and control of your Facebook advertisement and budget, which is a favorable aspect of Facebook advertising. Keep track of your Facebook campaign’s progress, so you know exactly how much you’re investing and what you’re getting out of it.
You can also compare the output of your paid and organic posts using Facebook Insights data to make strategic targeting decisions for potential advertising.
How to Make Facebook Ad Campaigns Worth It
To avoid wasted ad spend, analyzing the data produced by your campaigns remains critical. Facebook ads and the associated algorithms are constantly changing and evolving, so it is important to keep up to date on the latest trends.
A/B testing can be a helpful way to see what works best for your target audience. Try different types of ads, images, videos, and copy to see which performs the best. You can also test different ad placements.
Some of the data points to review include:
- Cost per click (CPC): the price you pay for each click from your Facebook ad to your website. If you see a high CPC and low click-through rates (see below), then you’ll need to optimize your ads to improve performance.
- Click-through rates (CTR): The percentage of individuals that have clicked on your website after they saw your ad. Higher CTRs will tell you that your Facebook ads are intriguing and your target audience would like to learn more.
- Conversion rate ranking: your ad’s “expected” conversion vs. other Facebook ads with the same objectives and similar audiences.
- Cost per action: How well your ad generates actions and at what cost. Marketers should use this to control how much they pay for specific actions – clicks, impressions, etc.
Reviewing these weekly, if not daily, ensures that your Facebook ad campaigns are on track and making the most impact.
It is also essential to keep an eye on your competition and learn from their successes (and failures). By understanding what they are doing, you can stay one step ahead and keep your campaigns fresh.
There are several reasons why Facebook Ads remain popular, despite the concerns about their effectiveness. When used correctly, they still are a terrific tool for businesses to generate leads and grow their customer base. So our answer to “Are Facebook Ads worth it?” is YES! There are so many benefits businesses can get out of advertising with Facebook Ads.
If you’re ready to give Facebook Ads a shot, check out our Facebook Ads services at Intensify.