Why should we capitalize on Facebook ads?
Hi! It makes sense to capitalize on Facebook ads, as they can offer a good ROI and help almost every kind of business. However, ad platforms like Facebook, Google, Instagram, etc. are very hard to utilize without a substantial budget and profitable business model.
Since online marketing is becoming popular these days, Facebook ads have a great role to play in the success of this modern form of marketing. But I would sooner say that they help the rich get richer, or the intermediate-level small online businesses grow into larger ones, than that they help beginners make money.
Let’s discuss more.
Facebook has a large number of daily active users. Your buyers are on there, guaranteed. However, the concept of social media ads isn’t new anymore, and there’s more competition in the ad spend market.
You can have an awesome ad, targeted to the right kind of people on the right platform, but the truth is that unless you are willing to risk spending more than your competitors, your chances of turning a profit are pretty poor. Most businesses I know of that use Facebook ads effectively are using them to break even with lead generation.
For example, let’s say I run a business that teaches how to grow a garden with exotic plants. I could run Facebook ads to a book about growing certain valued plants that don’t grow in most climates, and that book costs a small amount of money and comes to the customer in the mail. If I do my job right, the money made on the book sales will make up for the ad spend on Facebook, at least mostly. But the real purpose is that these people are now leads, who I can market to with more products, more books, trainings, garden equipment, etc. to make more money on them.
That is the business model that actually works with these platforms. The more you can safely spend to display your ads to customers instead of your competitor’s ads, the better the ads will actually perform. So as you can see, it’s not a platform that rewards toe-dippers or beginners. It helps people with a solid advertising budget to begin with, not people who are uncomfortable with the very thought of losing money on ads.
With that said, why do some businesses risk spending so much on Facebook ads in particular? Well:
#1 It is a targeted form of advertising.
#2 The overall expense with Facebook advertising is comparatively cheaper with better reach than many platforms, except for LinkedIn right now.
#3 They provide quick results.
#4 It helps in generating quality traffic to a website.
#5 They are a part of a reliable strategy for lead generation.
#6 They can have better conversion rates than ads on other social sites.
#7 With the help of analytical tools, you can view the performance of ads from multiple dimensions and split test different ideas.
#8 The cost per acquisition is comparatively low compared to many other ad formats.
#9 They are not just limited to online sales. They have a proven track record for driving offline sales for local businesses. #10 Facebook ads are social content, which means they have a chance of being shared and going viral.
#10 Facebook ads are social content, which means they have a chance of being shared and going viral.
There can be more points that are specific to the type of business. As we are discussing ads, many people/businesses, who do not make enough revenue from ads due to improper implementation, start pointing out the disadvantages of social media ads or advertising in general. For some reason, advertising is one of those aspects of business where people often try it just a little, without really trying to improve upon it or with a growth mindset, and when that doesn’t work, they take that to mean that the entire concept is a scam, or that it somehow doesn’t work for their specific niche.
In the context of our discussion, I have an interesting article to share with you that discusses the importance of ads in a different way, and the attitude you need to actually make advertising work. My post: “Welcome to a World without Advertising,“ discusses a hypothetical situation of a world with literally no advertising, to show what advertising is actually about.
In a nutshell, ads, especially Facebook ads, are pivotal to a business, and it’s an intelligent decision to capitalize on them. But only if you’re ready. For pre-revenue businesses and total beginners, stay away from PPC ad strategies. Wait until you have some real money to spend and a reason to spend it, such as launching a brand new product.
Please feel free to reply to me if you have any questions.