Facebook Ads: What you need to know, Pt. 2
By Amy McIlwain
Financial Social Media Marketing
The previous article in this series outlined the reasons why Facebook Ads are an important part of your organization’s social media marketing campaign. This article is a continuation of the last, and will delve into the technical aspect of Facebook Ads and how to implement them successfully.
There are two main types of Facebook Ads available: premium and marketplace ads. Premium ads require you to contact the Facebook sales team and set up your advertising goals together. Marketplace ads are more common and are a self-serve tool. When you promote something you've created on Facebook, such as a page or event, you have the opportunity to show social endorsements in your ad. For example, have you ever seen an ad for a company requesting you to “Like” their fan page? This is a Facebook Ad promoting their Facebook fan page, attracting users and driving traffic to their page.
Facebook states that there are four main steps to creating your ad:
1. Identify your goals
Do you want to increase sales? Generate awareness with a local audience? Promote a specific event? Or get more people to “Like” your Facebook Page?
2. Define who you want to reach with your ad
Ask yourself the following questions: Who shops in your store, buys on your website and tells friends about your company or Facebook page each day? Where are they located? Are they all over the world or in a particular geographic location? Or both? Do your customers fit into a specific age range or share an interest in a particular topic?
3. Create your ad and set your budget — an ad or group of ads that share a daily budget and schedule.
- Ad pricing types: Cost per click, CPC — you pay each time someone clicks on your ad, and cost per thousand impressions; CPM — you pay based on the number of people who view your ad.
- Daily budget: The maximum amount of money you're willing to spend on an individual campaign per day.
- Lifetime budget: The maximum amount of money you’re willing to spend over a campaign's lifetime, a specific period of time.
- Max bid: The maximum amount of money you're willing to pay per click on your ad or per thousand views of your ad, depending on whether you have a CPC or CPM campaign.
- Action System: The market sets the price of your ad.
- Bidding: The suggested bid range shows you the range of bids that are currently winning the auction among ads similar to yours. You can set a maximum bid for each ad from the suggested price range Facebook provides. You can also choose a maximum bid outside the suggested bid range.
- Daily budget and spending limit: Represents the maximum amount that you are willing to spend on that campaign for each day you are advertising. Your ads will automatically stop showing once your budget has been met for the day. Daily spending limit is the maximum amount that, given available impressions and winning bids, will be spent on your account in one day.
- Scheduling: Depending upon your objectives, you can schedule your ads to run during specified dates or continuously.
- Delivery: For any given ad unit, the Facebook auction selects and delivers the best ad to run based on the ad’s maximum bid, quality and performance.
- Billing and payment: With Facebook Ads, you are billed automatically to the credit card provided.
- Track your performance: Facebook has a suite of tools to give you the information you need to make rapid and informed decisions about your advertising campaign. This includes access to the following metrics: standard, demographic, profile, and conversion. These tools are equipped with constantly updating stats to help you manage and optimize your advertising account on Facebook in real time.
- Ad types: Facebook Ads allow you to easily advertise a destination on Facebook such as a page, event, application or group, or your own website.
- Ad creative: The creative design and content of your ad plays a critical role in getting the attention of Facebook users. The creative elements of Facebook Ads include the title, image, body text and destination URL.