Marketing

How To Lower the Cost of Running Facebook Ads

February 8, 2022
4 minutes

Facebook advertising is one of the most influential and inexpensive ways to market your company. It is a low-cost, high-impact way to reach potential customers at their fingertips on the world's largest social network.

However, in 2015, the average price-per-click (PPC) of an effective Facebook ad was just $0.27. Since the start of the pandemic and the uproar of ecommerce - bringing fierce competition to various ad networks - prices continue to rise year over year. In November of 2021, the average PPC had reached $0.974 and continues to increase. So while Facebook and Instagram remain a goldmine for sales opportunities, it's time to find the best methods to lower these costs.

That's just the start; As of July 2021, several other major social networks have seen a significant increase in advertising costs year over year:

  • Google & YouTube's CPM (cost per thousand impressions) went up by 108%
  • TikTok's CPM went up by 92% increase
  • Snapchat saw a 64% increase in CPM

After reviewing two years' worth of data from various Google Ad campaigns that our clients were kind enough to share with us, we published this piece to help you explore ways on how you can lower the average cost per click within Facebook and other paid social media advertising. By following these techniques, entrepreneurs won't have to worry about Facebook ad prices increasing to a point where their ROAS (return on ad spend) is no longer profitable.

But first, what is Facebook Advertising?

Facebook ads can be placed on all of the Facebook pages that a user visits and the right-hand side newsfeed. They are targeted to users who have similar interests to those your company targets. Since this is done by targeting those with similar interests, you can ensure each person will find value in what you are trying to promote.

This outreach method is highly effective because it allows you to target just the right audience for your product. In addition, the more information you have about your target demographic, the better off you will be while choosing groups to advertise to because targeting options are so specific.

Why use Facebook Advertising?

There are several different reasons why you should use Facebook Ads. First, it is simple to use - all you need is a business page on Facebook! Then, you can start creating your ads. Facebook advertising doesn't have to pay for people who aren't interested in what you're selling. This provides an inexpensive way to market your business!

With Facebook advertising being so easy and straightforward, you might think there is no way to lower the average cost per click within Facebook advertising. But this is not true! Instead, there are ways you can low your Facebook ads' cost-per-click, and we will discuss four of them below.

1. Use Facebook Lookalike Audiences

Facebook lookalike audiences allow you to target new customers on Facebook who are similar to those who like your page or have visited your website. Here's how it works: let's say you're an ecommerce website owner who sells cycling accessories.

First, you'll head over to Facebook ad manager, then hit create audience>create custom audience>customer file. From here, you will upload a file of your existing customers. Facebook will give you a list of them with ads specifically mentioning road bikes and other related cycling accessories—you can simply book users that are similar to them. It's an accurate, easy way to get new Facebook page likes from people who may be interested in what you're selling.

With Growtoro's Lookalike Audience Builder, you can collect customers' email addresses from your users in your niche - data from your competitor's followers or an industry hashtag with a large number of posts. You can upload these lists to Facebook. From there, you can create custom audiences using the customers' Facebook IDs. This is a very simple method to cut costs, by reaching Instagram. It allows you to create a conversion pixel that will allow the social media platform to track purchases and sales made by customers who see your ad.

2. Remarketing & Retargeting

Remarketing or retargeting ads is the process of advertising specific products to people who have previously visited your website but did not make a purchase. For example: let's say someone visited your ecommerce store after performing a search for "road bikes." With a simple Google Tracking Tag, you can put a remarketing ad in front of this person as soon as they leave your site. The average cost-per-click is usually lower for those who have already been to your website, so it's essential to target these users with Facebook Remarketing Ads.

It's important to keep your brand in front of those who are looking for similar or relevant products - and while few people dislike the "stalker-like" advertising, personalized, relevant ads are much more likely to be clicked. The average click-through rate for display advertisements (CTR) is 0.07%. In contrast, retargeted ads have a CTR of about 0.7%, meaning that retargeting ad effectiveness is ten times greater than that of a typical display ad.

3. Overlapping Audience Campaigns

An overlapping audience campaign lets you take Facebook users who like your page and target them with ads for other similar pages. So let's say you sell road bikes on your page (via Facebook ad manager). You can then create an overlapping audience campaign that targets all the Facebook users that like your page, but also have liked other cycling-related pages, such as "cycling news". This allows you to infuse Facebook users interested in one specific topic (in this case cycling) with even more content related to cycling, thereby building their interest in purchasing a road bike.

4. Create Eye-Catching Advertisements To Stand Out

A picture is worth a thousand words - and an eye-catching ad will have people dropping what they're doing to take action. With thousands of eCommerce companies competing for your potential customer's attention, it makes sense to use exciting imagery and text that grabs their attention.

Focus on developing a clear call to action directly related to your product. A good call to action should tell people what it will take for them to get started using your product or service. For example, "Get 20% off your first order over $50" or "Learn the basics of Facebook ads."

Keep on-ad text brief and impactful while using contrasting colors that complement your brand. The on-ad text should be a highlight of the ad, a concise one-liner that explains your core value proposition while acting as a disclaimer.

These four methods are some of the best ways to get more out of Facebook ads without increasing spend. As you see, they're easy to implement and can go a long way in making your company's advertising efforts soar higher.

Have any questions about building your own lookalike audience with our list-builder? Reach out now a growtoro.com to learn how to use these lists to run cold-email campaigns at scale or boost your Facebook, Instagram, TikTok, and other social paid campaigns.

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