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Welcome back to Marketing Class – my blog series passing on my experience and education in digital marketing to you for free. For todays blog, we are addressing the big question “Are Facebook Ads Worth it?” In general, Social media platforms have become a powerful tool for businesses to reach their target audience.

Among these platforms, Facebook stands out as a frontrunner with its extensive user base and advanced advertising capabilities. With over 2.7 billion monthly active users, Facebook offers an unparalleled opportunity for businesses to connect with potential customers and drive meaningful engagement. But in 2024, are Facebook ads worth it?

In today’s post, I will be going over the pros and Cons of Facebook Ads, who should and shouldn’t run Facebook ads, Evaluating the ROI on Facebook Ads, and alternative advertising channels to consider instead of Facebook Ads.

Are Facebook Ads Worth It? The Pros and Cons of Running Facebook Ads

Facebook Ads ROI Calculator

The benefits of advertising on Facebook are manifold. Firstly, it allows businesses to reach a vast audience that spans across demographics, interests, and geographical locations. This level of precision targeting ensures that every ad is delivered to individuals who are most likely to be interested in the products or services being promoted.

Facebook ads are Great for e-commerce

If you’re running an eCommerce business, Facebook ads can be a game-changer for your marketing strategy. The question of whether Facebook ads are worth it for eCommerce businesses has a resounding answer: yes. There are three big reasons why:

Facebook is the Most Cost-Effective Ad for eCommerce

One of the key advantages of Facebook ads for eCommerce businesses is their cost-effectiveness. Of all the businesses I have worked with, Facebook ads have the lowest barrier to entry and the best bang for the buck at lower monthly ad spend which means that even small eCommerce businesses can compete with larger players in the market.

Get Better Target Demographic Data

If you are new to this blog, you may not realize that I am a big data nerd. I hesitate to offer recommendations without solid data to back my conclusions. That’s why I love  Facebook’s ad platform for small service and eCommerce businesses. It provides robust analytics and tracking capabilities that can get you started at around $100 a week.

Getting this kind of data early on in your eCommerce business is essential. It allows you to measure the effectiveness of your campaigns in real-time and make data-driven decisions to optimize your advertising strategy for not only existing products, but to inform future product development decisions.

Are Facebook Ads Worth it – the Drawbacks and Downsides

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While Facebook Ads have proven to be a powerful tool for businesses to reach their target audience, it is important to acknowledge the potential drawbacks and challenges that come with utilizing this platform. I think there are 5 things every business owner or marketing manager should know about Facebook before getting started and that’s Ad Fatigue, Rising Costs, and surrendering to the Algorithm.

Ad Fatigue

One of the main concerns with Facebook Ads is ad fatigue. As users are continuously exposed to numerous ads on their newsfeeds, they may become desensitized and overlook or ignore advertisements. This can lead to a decrease in engagement and ultimately impact the effectiveness of your campaigns.

Rising Competition and Ads Costs

Another challenge is the increasing competition and rising costs associated with Facebook Ads. As more businesses recognize the value of advertising on this platform, it becomes increasingly difficult to stand out from the crowd. This heightened competition often results in higher bidding prices for ad placements, making it more costly for businesses to achieve their desired reach and results.

Surrendering to the Algorithm

Furthermore, Facebook’s algorithm changes can pose limitations on organic reach. The platform frequently updates its algorithm, which can impact how many users see your ads organically. This means that even if you have a well-crafted ad campaign, reaching your intended audience may become more challenging due to these algorithmic changes.

It is important for businesses using Facebook Ads to stay informed about these potential drawbacks and challenges.

How to Get Better Ads Performance on Facebook

Digital marketing strategy

Although I think that Facebook ads are worth it for most businesses, when it comes to running successful Facebook ad campaigns, there are a few key strategies and tips that can help maximize their effectiveness. One of the most important aspects is creating compelling ad creative and copywriting that grabs the attention of your target audience.

Start your Ads Targeting with a Problem…

I was in sales training a few years ago when I heard something that has stuck with me ever since. It went something like this:

In sales, we sometimes are scared to ask people what problems they are facing and instead immediately rush to how we can solve those problems. Its important in any sales technique to make sure people feel the pain first, before we attempt to solve it — otherwise, there is no reason they should buy our product or service.

Every marketing blog on the internet will tell you how important it is to understand your target audience, but I think it’s so much more important to understand their problems than to understand what car they drive.

Yes, ad targeting is a core part of great marketing. But we often lose the plot if we are just focusing on who our audience is, and lose track of why they buy. 

Always Run Experiments…

With AI and Algorithms controlling so much of how we get information out about our businesses, it’s essential we are running controlled experiments. You have likely heard of A/B testing which is a great start to running great Facebook Ads Experiments.

How to A/B Test on Facebook Ads

Depending on what your business does, there may be some variation but ultimately, you should only be testing one variable at a time. Otherwise, it can be hard to know if the data you are looking at is showing you any real improvement in testing variations.

What Elements Should You Change in A/B Tests on Facebook Ads?

You can test a lot of things but here is where I recommend starting for your first A/B test:

  • headlines
  • visuals
  • Calls-to-action

These three items usually have the highest impact on conversion rates in your ads. So by testing these three items, you should get better results overall.

Are Facebook Ads Worth It? How to Evaluate Your Return on Investment

Facebook Ads ROI Formula Graphic

When it comes to running Facebook ad campaigns, evaluating the return on investment (ROI) is crucial for determining the success of your efforts. To accurately measure the effectiveness of your campaigns, it is essential to establish clear success metrics and utilize conversion tracking tools.

Measure the Right Metrics…

Lots of marketing managers get a little tunnel vision when measuring the performance of Facebook Ads. These are called “Vanity Metrics” or metrics that look good on paper but don’t do anything for your bottom line.

What are Vanity Metrics on Facebook Ads

These metrics can vary depending on your specific goals, such as increasing website traffic, generating leads, or driving sales but generally speaking, they are:

  • Impressions
  • Follower Count
  • Likes
  • Comments

None of these metrics significantly contribute to the ROI (Return on Investment) of your Facebook ads so its important not to put too much stock in these metrics.

How to Identify the Best Metrics for Your Business

By identifying key performance indicators (KPIs) that align with your objectives, you can effectively measure and analyze the impact of your Facebook ads. As always, they differ depending on businesses but here’s what most businesses should be measuring:

  • Conversion rate
  • Click Through Rate
  • Purchases or leads (B2C or B2B)

If you are focusing on key metrics and have followed my advice so far, then I think one more thing that would be helpful for you is my Facebook Ads Calculator. I codded this up a bit ago and offer it for free for all my blog readers. Click here to calculate the estimated ROAS (Return on Ad Spend) using my small business Facebook Ads ROI Calculator.

Thanks for reading to the end of this post. If you find the information I provide to be helpful, you may want to consider working with me as your web designer or marketing consultant.

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None of the information presented on this site constitutes legal, business, tax, or medical advice. In each scenario, it’s recommended to first chat with a medical, legal, business, or tax professional before making any decisions.