Advertising on Facebook: Is your campaign profitable?

[jrineakter]

You’ve run a Facebook ad, but how do you know if it’s profitable or not? Was the launch successful? In this article, I’ll discuss how to analyze the results of your Facebook ad.


Over the past few weeks, in the first three parts of this series: 'Facebook Advertising', I explained how to set up a Facebook campaign. In the first article, I described how to conduct customer research within your market. After gaining insight into your customers, you determine your target audience in three steps . Then you choose the right photo and call-to-action for your ad. If you haven't read this yet, I recommend that you do so. Finally, you move on to an analysis. Now you want to know whether or not you have launched a successful ad. I will discuss some statistics that are relevant for this.

Click-through rate (CTR)
The CTR is the percentage of clicks per impression. If a hundred people see an ad and 15 people click on it, the CTR is 15%. I look at this statistic in particular. If your ad shows a high CTR, it means you are targeting the right audience. A higher CTR also means a lower cost per click. An average normal CTR is between one and two percent, although it is not unusual to get three to five percent.

If you score below one percent, you ivory coast telegram number list may want to rethink your ad. Perhaps the target audience is too large, not properly defined, or your message is not well formulated.

click-through rates and cost per click: a mouse as a tool for earnings

Cost-per-click (CPC)
This CPC shows how much you pay each time someone clicks on your ad. You can set the cost per click. I recommend starting with the suggested amount that Facebook itself suggests. If you see that your click is low in cost, but you are not getting many clicks, you can consider increasing the maximum cost per click so that more people see your ad on a daily basis.

What is a good CPC?

€0.01 to €0.19: excellent.
€0.20 to €0.39: average and good.
€0.40 to €0.79: certainly not bad, but you are already going on the expensive side. There is potential for lower costs if you experiment further.
>€0.80: very expensive.
Budget
Below is a small overview of the amount of people you will reach with the following budgets:

€50 to €150: 10,000 people
€200 to €350: 25,000 people
€400 to €750: 50,000 people
If you are reaching fewer people than the suggested budget above, you probably did not do a good job with one of the components of your ad. Go back and see if you have a good target audience, call to action, and a photo. Facebook is like basketball, the more you practice, the better you get.

click-through rates and cost per click: a mouse as a tool for earnings

If you reach 10,000 people, you should get 100 to 400 clicks from this. If you guide your customers well to a promotion, sale and/or registration, you could attract between 1 and 25 new customers. Depending on the costs and profit of your product, you can calculate for yourself whether it was profitable or not.

Long-term strategy
If you are running a zero operation with a campaign, but you have a lot of new customers in a database who have bought something from you, it is useful to keep in mind that you will only make a profit after a while. Namely through new products or recurring sales. So don't always focus blindly on what the campaign has brought in today. Try to have an overarching strategy of which Facebook ads are a part.

Don't always focus on what the campaign has achieved today.

Action
One week after launching your ad, see:

1. Your click-through rate or CTR.
2. Your cost per click or CPC.
3. How many people you reached.
4. The budget you spent.
5. The number of new customers you actually acquired.

If your costs are higher than your revenue, it’s best to evaluate your advertising and see what areas need improvement. If you can’t measure how many customers your advertising has brought in, it’s helpful to figure out how you can measure it. If this is new to you, you may have to experiment with other methods. It may be challenging, but know this: once you figure out how to measure it, you’ll have a system that you can continue to tinker with and improve. This will help you systematically grow your business, instead of trying to get customers by guesswork and remaining stagnant like most entrepreneurs.