Have you noticed that your Facebook advertising cost has been getting more and more expensive in the last few years? You are not wrong. It is really happening.
The average price for ads increased by 17%, and for ad impressions, it grew by 34%. With the rising cost of Facebook advertising, what can you do as a marketer to prevent it from taking more money off your table?
Most people say that you need to create better advertising to increase your conversion rate. That conversion rate will increase revenue, and thus overcome the rising cost. That is true. But often, you spend more time and effort on creating better ads. And that could cost you even more money.
You might be thinking, “What am I supposed to do?”
Well, with three simple steps, you can reduce your Facebook advertising cost while maintaining the same conversion rate.
Can you guess what it is that you need to do? You guessed it. It’s our good old buddy — Market Research.
At the beginning of your campaign, you need to do market research. This is the utmost important step you have to take.
Imagine you have the Yellow Pages in front of you, and you want to sell your product to as many people as possible in the phone book.
In the first approach, you can be an optimistic salesperson who would never take NO for an answer. So you call every single business, line by line, page by page. By the time you reach the last page, you have thousands upon thousands of rejections, and the phone bill is also going to cost you a lot of money.
Instead, you take the second approach. You do your research first, then you find out which type of business is dying for your product. And then you call the company and sell your product.
Do you think you would get many rejections and a more expensive phone bill with the second approach? I don’t think so.
As legendary copywriter Gary Halbert once said, “If I could get one advantage in the market, I would choose ‘the starving crowd’ every single time.”
You see, you are looking for YOUR starving crowd who is dying for your product. The milli-second they see your message, they will engage and buy your product right away. And that’s why you always want to target these people first.
In a survey, more than 48% of customers said they dislike advertisements that are unrelated to their interests. You see, when you don’t use precise targeting in a campaign, you are very likely to target people who have no interest in your product. These people will ignore your ads, and even worse, they’ll get annoyed.
So, not only will you be wasting a lot of money, but you also create the wrong impression on the marketplace.
Now you understand why doing market research is essential to reduce your Facebook advertising cost. Let’s get to the first step of precise targeting.
That’s right. You have to be a curious detective like Sherlock Holmes. In this step, you turn over every rock you see during your market research.
Go to forums, Reddit, and Facebook pages and groups. Find out who your target audiences are and what they talk about.
Let’s suppose you are selling a diet. Search topics about losing weight or beauty on Facebook pages or forums. Then, pay attention to who audiences are and what they talk about. Take note of their demographics.
Look at your competitor’s marketing. If they are running their ads for a long time, that means it’s working. Look at their marketing message and analyze what demographics they are targeting. This would give you an idea about what kind of target audience might be interested in your product.
Moreover, you can look at what the customers say about your competitors. Ask yourself: What are they recommending? Do they have any dissatisfaction? Can your product satisfy those needs? If so, they are the perfect target for you.
According to adespresso, 200 million people joined Facebook groups because they can get value from the groups.
Even though building your own followers might take a long time, the reward is unlimited. You see, these people would be your starving crowd. You understand their needs and they know what you offer. And they already trust you.
When you sell them something, there’s almost no resistance. This will save your Facebook advertising cost in the long run. You can always target this group of people virtually for less.
While you are doing market research, remember to take notes. Then create a profile.
Here are some questions you should ask yourself:
How old are they?
Is your product specifically for men or women or both?
Where are they?
What’s their education level?
What’s their income level?
What kind of job do they have?
What are their interests?
Now, after you have done your research, and you have created a profile of your ideal customer, how do you know if your profile is accurate?
That’s simple. The profile is accurate when it is producing the result you want — converting at the same or higher rate while reducing your Facebook advertising cost. And that’s when step 2 comes in.
“The most important word in the vocabulary of advertising is ‘test’. If you pretest your product with consumers, and pretest your advertising, you will do well in the marketplace”—"The Father of Advertising" David Ogilvy
Yes. You have to test it. There is no other way around it. The simplest way is A/B testing. With A/B testing, you will be testing two of the profiles you just created. And you will see which one produces a better result. If both of the results aren’t good, go back and tweak the profile again until you get the result you want.
Moreover, to increase the conversion rate while reducing your Facebook advertising cost, it’s crucial to create highly engaging Facebook ads.
Be aware of the relevance score of your campaign. The relevance score is measured by how relevant your ad is to your target audience. In other words, when people engage your ads, the relevance score increases.
You see, the Facebook algorithm favors a high relevance score. And the higher the relevance score, the lower your ad costs are. That’s why you always want to keep the relevance score as high as possible. And using precise targeting can help you achieve that.
Okay. Now you have found your starving crowd. And you are reducing your Facebook advertising cost. Is there anything else you can do to take it to the next level? Yes, there is, and you'll find out in step 3.
According to research on “Mere Exposure Effect”, when a person is repeatedly seeing you over and over again, he or she will start liking you without realizing it. This is because our subconscious minds trust someone familiar rather than someone that we see for the first time.
This is something you want to take advantage of. By retargeting your audience over and over again, you are casting the “Mere Exposure Effect.”
According to HubSpot, 63% of customers who ask for information about your business or products won’t make a purchase for at least 3 months. That means in those 3 months, these customers are in research mode. They are thinking about which brand they should go for.
And that’s where you want to seize the opportunity. You retarget them with your ads to cast the “Mere Exposure Effect” on them. As a result, they will become more aware of your business, and they also feel more familiar with and feel trust in your brand.
Ultimately, when they come to making the final decision, they are very likely to choose your brand over your competitors. And that is the final step of precise targeting and reducing your Facebook advertising cost.
In the past few years, your Facebook advertising cost may have been increasing. By using precise targeting in your marketing campaign, you can reduce the cost by almost 50%. Here are the three main steps:
Do market research
Keep testing until you get results
A highly trained copywriter can do market research and create engaging Facebook ads. If you need help with creating engaging Facebook ads for your precisely targeted audience, then hire a dedicated copywriter today.
Eddie Lam is a trained and certified copywriter. His great passion for advertising, marketing, and sales has led him to ventures like eCommerce, investing, and business. He also likes advanced technology, and he is a big fan of Apple. He now devotes his time to help businesses to grow by being a great copywriter.Hire Eddie