One of the great things about Facebook Ads is that it is entirely flexible in terms of your budget. You can set not only how much you are willing to spend per day but also how much you are willing to spend on any single click on your ads.
But while this flexibility is good news when it comes to finding the right audience, it also adds to the challenge somewhat as now you’re going to have to decide how much you should be spending on your ads – with such freedom, there’s a whole lot more to think about!
How do you calculate this and ensure you get it right?
Working Out Your Conversion Rate and Profits
The first thing to do, is to calculate what your precise profit is each time you turn a visitor into a customer. What are your overheads on each product (your ‘cost of goods sold’) and what is your asking price?
Next, ask yourself what your conversion rate is. For every 1,000 people who visit your website, how many people buy a product? It might be one, it might be .01 or it might be 50. Whatever the case, this will now allow you to work out how much each visitor is worth to you.
So if you have 1,000 visitors and 2 of them earn you $30, you’re making $60 per 1,000 visits. That means that your visitors are worth 6cents each to you. That in turn means that you can afford to pay 6 cents per click and guarantee you will breakeven. If you pay 5 cents per click, you should be guaranteed to make a profit.
There are a few complications and considerations however that make this a little less straightforward than it may initially appear.
For starters, you need to consider what your ‘customer lifetime value’ is (CLV). In other words, some customers might order more than once and that means you can afford to pay a little more.
The other thing to consider is your cash flow – and the fact that you might not perfect your adverts right away. You need to save a little budget in order to experiment with things like targeting and therefore to get the perfect conversion rate. Make sure you don’t burn through your entire budget on day one then and save some for experimentation!
Copywriting Strategies for Your Facebook Ads
The right copywriting for your Facebook ads can absolutely supercharge your profits and help you to see breakthroughs in your sales and conversion rates. While targeting and your choice of image are important, it’s the text on your ad that will eventually cause viewers to either click or pass up on your ad and this is why you need to think carefully about how best to phrase it.
This post will help you get your copy just right for getting the right kind of person to click on your ads and hopefully order your products and services.
The first thing you need to concentrate on is the way you write the heading of your advert, which is initially what will grab attention and ensure people take notice of your ad. Remember though, the objective is not to get lots of clicks but rather to get the right people to click. Thus, you may find it actually makes sense to try and put some people off of clicking your ads so that you aren’t paying for visitors who won’t be interested in your brand. Make it very clear what it is you’re selling/what your site is about and even consider including the price in your ad.
You only have a very limited number of characters to play with in your description so it needs to be good. Try to make your product sound appealing by focussing on the value proposition – how will your customers’ lives be better as a result of ordering your product?
At the same time, think about how you can remove the barriers to sale. These are the concerns that might prevent people from wanting to buy your products – perhaps they’re worried it won’t do what they want it to, or maybe they’re concerned about buying from an unknown brand. Making it clear that you offer a money back guarantee can help for instance, as can making it clear that your order process is very quick and easy.
Finally, remember that you can show a lot more information in an image. Think about what your image will be before you write your text as this way you can ensure that the two complement one another rather than covering the same ground and essentially becoming redundant.
Don’t forget to experiment and to try altering your text over time to see if it can improve your CTR and conversions!
I personally use Facebook as one of my highest priorities which is a technique I learnt from my mentors.