Tag : cost-per-click

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Facebook’s “Next Best Thing” Helps Us Little Guys

The combination of the Facebook pixel and the Lookalike Audience tool is one of the most incredible marketing innovations since the Internet was invented. I don’t know of anything that has democratized business so much in my lifetime. Now, mom ’n’ pop organizations and even sole proprietors can spool their customer bases to rival that of Fortune 100 companies and then unleash Facebook’s machine learning process to hone that list into a mind-boggling resource.

Unfortunately, for many of my clients, even just installing a code into their website header is a big ask; and many new companies don’t have the few hundred customer names required to start a Lookalike Audience.

Thankfully, Facebook invented the next best thing within the past couple months. I’ve been experimenting with it on behalf of several clients, and it’s killer.

Within the Custom Audience menu—where you upload lists and/or connect to your website pixel traffic—advertisers can now create an audience of people who recently interacted with your Facebook content. You can even indicate specific interactions, though I don’t.

Custom Audience Facebook interactions

For auction companies who sell the same or related asset categories, this audience is extra valuable. It functions similarly as the pixel, except that you can’t create lookalikes from website traffic that originates from other digital and offline sources. Also, you can’t create an audience that got to a specific action on your website like a pixel can. This new audience allows you to get people who interacted with your advertising but didn’t go to your website. As of right now, that’s something the Facebook pixel can’t do.

In only a few weeks of testing, I’ve found it to help both click through rates and cost per click. For one auction company, we recently had two auctions within a month for the same seller with the same inventory. Our average click-through rate jumped from 3.1% to 4.7%—with one ad hitting 7.8%. Our average cost per click dropped from $.47 to $.34.

These gains don’t cost anything, either. Like all of the other audience tools, Facebook gives this one away for free to help your ads be more relevant.

If you sell an asset category where your buyers might be sellers, this tool allows fantastic cross-marketing opportunities. In my early testing, this new audience has been successful for consignment auctions. For one of my clients who works a lot in agricultural real estate and equipment, I used to achieve really good results serving ads to people who liked their company Facebook page. I’ve switched those ads over to this audience—since recent activity trumps a one-time thumbs up.

You can designate this interacting audience for up to 365 days in the past or as short as you’d like. For auctioneers, you can create timelines that capture traffic going back to specific auction campaigns.

So, here’s to us small business marketers getting even more access to Facebook’s users! Here’s to us capturing our advertising traffic in a new way. And here’s to the marketing and re-marketing potential now available at our fingertips.

Stock photo purchased from iStockPhoto.com.

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334: 6 Things That Make Your Facebook Ads More Expensive

I regularly get asked to estimate the cost of a potential Facebook campaign off the top of my head. That can be difficult because the cost of advertising on Facebook can vary greatly depending on a multitude of factors. (Even in the same campaign, some ads are drastically more expensive than others.) Because what my clients and I advertise ranges greatly in category, value, and geographic market, the audiences vary accordingly.

Facebook advertising is billed in terms of cost per click (CPC), but that price isn’t uniform. CPC is determined by algorithms and invisible auctions. Ads compete for eyeballs, as Facebook allows only a certain number of ads during a user’s time on the service. Facebook wants ads to be appeal to its users, so that they aren’t annoyed off the platform. Because of this, the world’s largest platform wants paid content to match user interests as much as possible; and engaging ads are rewarded with lower cost per click.

But enough with the ambiguous factors, here are six specific reasons some of your Facebook ads cost more than others.

Unattractive asset

Let’s face it, you wouldn’t buy what you’re selling. You’re just crossing your fingers it sells. Or maybe the item at hand is less attractive to its local area (like a snowmobile in Orlando) or in the current season (like a motorcycle in December). If someone is less likely to purchase something, they are less likely to click on an ad for it. This isn’t a matter of asset value—just asset appeal. I’ve seen ads for small, rural estate sales significantly outperform expensive commercial real estate.

Unappealing copy or photos

You might have a fantastic asset, but the ad copy doesn’t evoke interest in potential buyers. The fault can be the wrong message, too many words, or a missing call to action. Also, the photography could be unprofessionally captured or otherwise underwhelming. It’s not that all images have to be snapped by commercial photographers; they just need to appropriately match the current, reasonable expectations of the consumer public for that asset.

Compressed time frame

Because ads compete for space, forcing them into a small window of time means that Facebook has to push your ads ahead of others with longer timeframes. To win the auction, you have to outbid every other advertiser. So, cutting line costs more. Sometimes, it’s very much worth it, if you are advertising to people at an event: say during the Super Bowl, a car show, or even a competitor’s auction.

Highly-competitive time frame

Certain times of year attract more advertising, because more retailers are advertising their wares. Think: Black Friday. I haven’t tested it, but I would imagine the week of Mother’s Day and Valentines would be more competitive. If you’re going hyper local in a metro area, there might be more advertising during festivals or perennial times of tourist activity.

Your prospect pool and its Facebook habits

Some desired audiences don’t interact with Facebook as often as others. That might be a factor of age, Internet availability, population density, or something else. Or you might be chasing a frequent Facebooker from a specific demographic or geographic area that a lot of marketers are chasing. Either way, supply & demand will make getting in front of them more expensive.

How the ad is optimized

Facebook offers multiple formats for your paid content to be presented. Each is inherently optimized by Facebook for different types of interactions—only one of which is getting people to your website. Also, even those intended for website traffic can be optimized for largest viewing audience, multiple views per prospect, or people most likely to click on links. So, even premium content can be more expensive from a cost-per-click standpoint due to how that content is ordered.

While we should all pursue more relevant ads, it’s important to note that efficiency is a secondary goal to effectiveness. Regularly, in my Facebook reports to clients, the ad that is most effective (got the most clicks) isn’t the most efficient one (lowest cost per click) we used in a campaign. Again, I regularly have huge swings in cost per click in the same campaign, using the same images and headlines.

Some audiences are worth their heftier cost. It only takes one click from the right person to have a buyer and two website visitors to have an auction.

Stock image purchased from iStockPhoto.com.

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