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Lucy was frustrated, she wanted the best Facebook ad conversion rates for her marketing campaign.
The problem though is that Lucy is new to Facebook advertising.
In several Facebook groups, she noticed that her peers (other course creators) are using Facebook ads to enrol new students every week in their programs.
Lucy did a few small courses on Facebook ads herself and decided to launch her own ads.
After 6 weeks she just wasn’t getting the results that she wanted.
Let me know if this sounds familiar.
- You invested a lot of blood, sweat and tears in developing your signature program
- Facebook ads are your preferred marketing program for your course
- You already have a few students and testimonials under your belt
- Your goal is to build on your success after the beta round of your program
If only there was a way to get a better understanding of the key metrics when it comes to Facebook ads.
In this post, you’ll learn all about Facebook ad conversion rates and what you need to do to improve yours.
What are Facebook Ads?
In case you’re new to the whole concept of Facebook ads let me tell you about them.
Facebook Ads are the ads that you see across the Facebook ecosystem. They come in the form of sponsored posts, sponsored events, right-hand page ads, video ads and more.
These ads leverage Facebook’s large market share of social media users to create sales for businesses.
Advertising on Facebook is attractive for reasons beyond its large user base. Facebook also has top-notch analytics tools and the ability to granularly target your customer.
You are not throwing ads out into the dark with Facebook Ads. You are reaching people you have reason to believe will be interested in what you have to offer.
Facebook analytics also allows you to see how your ads and other posts have performed. Leveraging that information can allow you to create more engaging content as you go.
Not only does this translate into a market that is more interested in your product Facebook likes it as well. The more consumers like your ad the more Facebook likes to display it. They reward good advertising!
Facebook Ads’ pricing is also reasonable and accessible for even small businesses. Access to the largest collection of social media users doesn’t have to cost a fortune.
A variety of factors influence how much you will pay for a Facebook Ad including who you want to target and what kind of advertising campaign you want to run.
You can opt to pay per views your ads receive or through some other metric like how many clicks your ad receives.
What is a Conversion Rate?
Understanding conversion rates will help you assess if your ad types and ad copy are effective. You want your audience to perform the desired action after interacting with your Facebook Ad. They aren’t just there to look pretty.
So, what is a conversion rate? Simply put, it is the percentage of people who convert into a new behaviour after being exposed to an intervention.
In the context of Facebook Ads, it is the number of people who purchase your product, or sign-up for your email list, after being exposed to your ad.
Facebook advertisers do not need to only be concerned with low click-through rates, it is essential that their Facebook Ad conversion rate is also high. Clicks should lead to a specific action and new customers for your business.
Facebook Advertising Benchmarks
One benefit of running Facebook Ad campaigns is access to Facebook Analytics. This powerful tool can lead to high conversion rates by allowing you to assess what is and isn’t working when it comes to converting Facebook users into customers.
Facebook metrics also help set pricing for the site with your advertising cost being tied to social media users’ interaction with your Facebook campaign.
Remember that Facebook takes a variety of factors into account when setting pricing on the site, including your campaign goals, so the prices listed here are average.
Cost Per Click
Cost per click, or CPC, refers to the price per click on your Facebook Ad. The average CPC is $0.94 per click. You can choose to bid on CPC when running your Facebook Ad. Facebook will then attempt to get you the most clicks possible in the budget you set. This can be a great way to generate views for your blog posts or to bring people to a landing page.
Cost Per Mile
Cost per mile, or CPM, refers to the price you pay per one thousand impressions. Where did mile come from? It means thousand in Latin. You are learning language and average cost today!
CPM is a great option to get your ad seen by as many potential customers as possible. When you bid on this advertising option on the social network they will get your ad seen by as many of their millions of daily active users as your budget allows. The average cost is $7.19.
Cost Per Like
Cost Per Like, or CPL, refers to the cost per like your Facebook page receives from your ad. Increasing likes helps build brand awareness. It can also lower costs by increasing the number of people seeing your content outside of sponsored content. It currently averages $1.07.
Cost Per Action
Cost Per Action (CPA) is a choice when running Facebook Ads that will have you paying per your desired action. Once you set your budget and your desired action Facebook will optimize for you to receive as many actions as possible.
This is a better option than just paying for link clicks when your concern is your Facebook Ads conversion rate. The price is $5.47 on average.
Factors Influencing Facebook Ad CPA
Facebook Ads does not charge everyone equally for any of their four price options. A variety of factors are at play. We will take a look at some of them here.
The people you are seeking to reach with your ad will affect the cost of the ad. Facebook allows you to narrow the Facebook users seeing your ad to those that fall within the parameters you set.
This prevents you from shooting in the dark at all 25-40 year-olds in the Midwest but rather lets you drill down into only those that share an interest in what you are offering.
For example, if you are offering running shoes it would display to those that are interested in marathons.
This targeting increases the effectiveness of ads but can also come with a price. Not all audiences clock in at the same dollar amount. As you tailor your audience you will see the pricing of your ad change.
Ad Quality and Relevancy
Facebook rewards ads that its users like. They use a variety of metrics to determine whether the ads people see are relevant to them and engaging. The better your ad scores the cheaper it will be to run the ad on Facebook.
To reduce your costs produce good ads. This has the added benefit of enticing customers. Conversions are higher with good-quality ads.
Where you opt to place your ad within Facebook’s ecosystem will also affect the price of your CPA. Options include choosing to only display your ads on mobile, placing your ads in Facebook newsfeeds, integrated videos, and more.
The abundance of choice lets you select where you can gain the most traction, and conversions, for your business. Though some of these options come at higher price points consider whether the increase in conversions makes up for the increase in Facebook Ads costs.
How to Increase the Conversion Rates of Facebook Ads
Facebook ads are a powerful tool to drive traffic to your site, but they aren’t magic bullets. To make sure you’re getting the best results possible, follow these tips to boost conversions.
Concentrate On Relevance
With the ability to target your Facebook Ads so precisely comes great responsibility. You want your ads to be seen by people that are interested in what you have to offer. Increase the effectiveness of your ads by targeting them to the right people.
Facebook lets you target your audience based on age, location, gender, interests and more. Assess who your customer is and then go find them on Facebook.
Make Use of Dynamic Ads
Facebook utilizes dynamic ads to show your products to the right people. They automatically show your ad to people who have expressed an interest in what you have to offer whether that be on your website, app, or anywhere else across the internet.
Opting for this targeting is an even narrower form of audience selection. These are not just people who share demographic details with your customers or are interested in things related to your product.
These are people who have already gone through the trouble of interacting with your content outside of Facebook. They are highly primed conversion and are a great value for your Facebook Ad budget.
Do Not Skimp on Quality
Facebook rewards you for creating ads that people like. Advertising doesn’t have to be bleak and salesy. It can be engaging and fun.
If your ad is something that people like and find value in, then Facebook wants it on their platform.
Ways to ensure high-quality ads make quality graphics, including great photos, and writing witty copy.
Write Copy That Emphasizes the Value
Writing good ad copy not only means that Facebook will reward you with more views it can also be a part of creating more sales itself. Your copy should clearly lay out what you are offering and why people should want it.
Emphasizing the value that people receive from choosing you is also best practice. Even those with large budgets do not want to receive less for their money. We all want to receive more for our money.
Lay out in your ad the value they will get from choosing you. In a crowded field, why do I want to opt for you as my wellness coach? Why do you offer the best-knitted ferret jumpers?
Make it clear they will receive a high-quality product at the best possible cost. Highlight any features of what you offer that stand out from the rest.
If possible offer them a bonus. You could run a giveaway for people who sign up for your email list. You could offer free bonus materials if selling a course. The possibilities are endless. What you offer is high value make your potential customer see that.
Keep an Eye on, and Improve Your Campaigns
Facebook’s analytics tools are there for you to take advantage of. Look and see what ads are getting engagement and which aren’t. With the power of the world’s largest social media platform providing performance reports, there is no reason to not see how things are going.
Once you have an idea of which ads perform well you can improve lower-performing ads to be more like the ads that are getting traction. You can also apply those analytics to your Facebook page posts and see which of your regular posts is performing best and consider boosting it or turning it into an ad.
Ad Fatigue Should Be Avoided
People are fickle. They love what you are doing one moment and hate it the next. Familiarity breeds contempt so avoid oversaturating your market with ads. Consider varying the ads so that your market doesn’t become annoyed.
Perhaps worse than annoyance is indifference. If you are running the same ad over and over it can become part of the wallpaper. Your target customers might grow so used to your ad they view it as an extension of the navigation bar.
Vary things up to keep your audience engaged and primed to follow through on your call to action. Keep your branding consistent of course but add interest and spice things up from time to time.
Get Your Creativity on Point
Have fun with your advertising! Get creative. Test things out and see what works. We can’t overstate enough how much Facebook and your audience will value this. Don’t sit on your laurels and let your advertising become boring and stale.
Use Facebook’s analytics tools to see what people like and think about how to deliver more of what the people want without boring the people. Stretch those creative muscles!
Tools to get your creative juices might include upgrading to Canva Pro and really getting in there and creating something fun and new. You could join a Facebook (the irony) group for advertisers to share ideas and look for inspiration there. You could do some good old-fashioned brainstorming. Don’t think too much just write what comes to mind and evaluate after.
Have Very Strong CTAs
Call-to-actions are the words or images that prompt users to click on something. When designing your landing pages, think carefully about your CTA buttons. Do they match the tone of your message? Are they clear and concise? Is the button large enough?
The goal of your CPA Facebook Ad campaign is to get people to perform an action whether it be purchasing something or signing up for an email list. Make sure that that is clearly laid out for them to do in your ad. Be enticing too!
A button that says click here without much else isn’t going to get clicked. Why do people want to sign-up for your email list? Do you offer exclusive content?
Why is your membership good value? Why do they want to purchase your potato warmer out of all of the potato warmers? Use your call to action to clearly highlight what makes what you have to offer so awesome.
How to Monitor Facebook Ad Conversions?
Facebook advertising is a powerful tool for businesses looking to reach customers and prospects. But, like all forms of marketing, it requires constant monitoring and tweaking to ensure maximum results. Here are some tips to help you monitor Facebook Ad conversion rate effectively.
1. Use Conversion Tracking Tools
Conversion tracking tools allow you to track specific actions taken after a user clicks on a Facebook advertisement. They also provide detailed reports showing exactly how much money was spent on ads, how many impressions were seen, and how many clicks resulted in sales.
Knowing these numbers allows you to see how far your money has gone and whether you are reaching your targets with your current spending.
2. Track the Performance of Each Page Post
You can set up conversion tracking for individual posts within your page. For example, if you run a blog, you can choose to track the performance of every single article posted.
This allows you to see which articles perform best and which ones underperform. Facebook offers this same feature for posts on their site. You can see how many people viewed your posts and how many engagements they received.
If you find that a particular post was shared more than others analyze it. What makes it stand out from the crowd? Test your ideas of what made it effective by creating more content. Perhaps you’ll find the secret to going viral.
3. Set Up Custom Audiences
Custom audiences let you target users based on the criteria you define. For example, you can select only users who visited your site last week and clicked on a particular link. Once you’ve defined these parameters, you can build custom audiences based on them.
Defining your audience allows you to focus on people who need, want, or are likely to buy your product or service. No offence to those people who are not interested in what you offer but when it comes to advertising they aren’t worth your time.
You want to hone in on converting people who are ready and willing to buy what you have to offer rather than persuading those whose interests lay elsewhere.
4. Create Remarketing Lists
Remarketing lists allow you to reengage past visitors to your site. When you’re running a Facebook Ad, you can specify which remarketing lists you’d like to display to previous visitors.
Remarketing, simply put, is using cookies to track previous visitors to your website. If they have visited your site not only are they interested in your field they are interested in you specifically. Entice them back to finish the sale by advertising to them after they’ve left your site and navigated across the web to Facebook.
5. Measure the Impact of Ads
Once you’ve created a campaign, you’ll receive daily reports showing how well your ads performed. These reports give you valuable information about your campaign, including clickthrough rates, cost per click, and conversion rates.
You can then continue to tailor what you have done based on this information. If you thought an inspirational quote as a call to action was your ticket to conversions and it wasn’t these numbers will bring this to light. You can then switch your approach to something else after good thinking and try again.
What is a Good Facebook Ad Conversion Rate?
A conversion rate of 1% means that for every 100 people who see your ad, one person clicks through to perform your desired action.
If you want to know what kind of conversions you should be aiming for, look at other businesses that have similar audiences to yours. You should ideally be outperforming the competition to continue to grow your business.
According to Wordstream’s Facebook Ad benchmarks, the average conversion rate for paid Facebook ads across all industries is 9.21%. From this, we could say that a “good” conversion rate for your Facebook Ads should be around 10% or more.
If you are in a particularly difficult or easy market you can adjust your expectations accordingly.
A few industries with conversion rates above the average include fitness, education, employment and job training, healthcare, real estate, and B2B. The fitness industry is doing particularly well with Facebook Ads clocking in at a 14.29% conversion rate.
Industries that have a tougher go of it when it comes to Facebook Ad conversion rates include retail, travel and hospitality, and poor technology clocking in the lowest at 2.31%.
Facebook Ads are a powerful tool for social media marketers, but they aren’t always effective at creating action. Facebook Ad conversion rates refer to the number of people who perform your desired action as opposed to the number of views your ad received.
These actions are not only sales based but can include page views, video views or collecting contact information. The action you are looking for might be something that will lead to sales at the right time.
Facebook Ads are a powerful tool for businesses looking to reach their target audience. They allow business owners to create custom audiences, track conversions, and even run split tests.
The problem is that these tools don’t come for free. Given that Facebook Ad budgets are not unlimited you want to make sure your digital marketing is leading to conversions.
Facebook looms large in the social media field and that has translated into power in the advertising space as well. Facebook Ads are the medium of advertising on the site. The service is paid for via bidding and the price is based on a variety of factors including whether you are utilising CPC, CPM, CPL, or CPA.
Advertising on Facebook helps you reach your potential clients but you want to ensure that your ads are leading to conversions. People need to not just be seeing your ad but also performing a desired action based on what they are seeing.
This action is not always a sale but can also be something like signing up for a newsletter. There are many strategies for increasing your Facebook Ad conversion rates that we could discuss during a call today.