According to a recent report from MarketingCharts.com on the effectiveness of Facebook advertising, the average click through rate in 2014 rose from 0.18% to 0.36% globally. In the U.S., the average click through rate increased from 0.09% to 0.14%. That’s just pathetic.
If we take a look at the average cost per thousand impressions, that also increased to 55 cents.
I’ll admit it, those advertising metrics are not good. If I was a Gilbert or Phoenix small business owner and I saw those numbers, I’d laugh and say “Goodbye.” With those deplorable numbers also comes the excitement in the social media industry from marketers who see the overall rise in click through rate as a great sign that things are moving in the right direction and that consumers and Facebook users are starting to respond to advertising. Haha, it makes me laugh.
Here’s what Facebook advertising is about – getting the greatest bang for your buck, the highest return on your investment, while increasing brand awareness, driving Likes to your Facebook page and traffic to your website. If you’re running an ad that is seeing just 0.36% click through rate, you’re obviously targeting the wrong audience. It’s pretty easy to see how unflattering those Facebook advertising averages are.
What You Should Be Seeing
If you’re running Facebook advertising as a Phoenix or Gilbert business owner and you see a click through rate below even 1%, shut it down and reevaluate the ad campaign. You could be throwing your money away. The same goes for cost. If you’re running a Facebook advertising campaign targeting local Arizona Facebook users, and it’s costing you over $2 per click to run, shut it down.
Facebook advertising is an artform, literally. It involves understanding not only who your target audience is, but what images they are attracted to and what text will grab their attention. It’s not about knowing where they live or how old they are, it’s about knowing where they shop, what magazines they read, their hobbies and their political alliances. Combining the artform, the 6th sense, with the statistics and research, will give you Facebook advertising averages like this:
I went back today and took a look at the average click through rate as well as the average cost per click of dozens of Facebook ads that I have run for multiple clients over the past 3 months, and the numbers you see above show my personal averages. Notice the average click through rate of 2.359%. I’ve never been good at math, but that’s nearly 2% higher than the national average for Facebook advertising click through rates! And that’s an average over 3 months, including some of the campaigns that I shut down due to poor performance!
How Do I Do It
The best way that I can explain how to bring your cost per click down while increasing your click through rate is to show you some examples of recent campaigns over the past 3 months.
As you can see here, I started a Fan page, for fun, for those who want to share photos of their Disney vacations. The target audience is an easy one – nationwide Facebook users between the ages of 25 and 35 who are interested in or have Liked Disney’s PhotoPass, The Walt Disney Company, Disneyland, Walt Disney, Disneyland Resort, Walt Disney World or Disney California Adventure. This ad ran at just $0.10 with a click through rate of 12%!
The next needs to remain private for confidentiality reasons, but while I can’t tell you the details of the exact Facebook page, I can tell you that they are a national company and I ran this Facebook advertisement for them targeting Fans of their direct competition. By targeting the direct competition with an attractive and well-designed ad set, I was able to run this particular ad for 3 months at just $0.39 cost per click and 4.131% click through rate.
These are just a few examples of actual ads that kicked butt, but there are some takeaways for your own personal Facebook advertising campaigns:
- These two examples, as well as all of the other campaigns that ran well above industry averages, targeted the audience superbly. You need to know exactly who your audience is. You need to utilize either the Behavior targeting option or the Interests targeting audience. I very rarely utilize both at the same time, as it tends to increase costs. Use what you know about your customer’s hobbies and likes to fill in the blanks.
- The image needs to be personal. I never use images that do not speak to me personally. They usually involve the model or subject in the ad image staring directly at the camera. Of course, for the Disney ad I simply used the item of affection – the Disneyland castle. Use an image that is touching, that speaks to the interests and desires of your audience. Use an image that doesn’t look like a stock image, but looks like something a little less formal.
- I always find the text within the Facebook ads to be the hardest part. Developing copy that speaks to the audience while simultaneously calls them to perform an action is incredibly difficult. Once again, make it personal and customized. Talk to your audience as if you’d talk to your customers in-store. Don’t get crazy with big words and confusing phrases. Keep it simple. And, most importantly, keep it inviting. Provide a solution to their problems.
- Facebook advertising absolutely needs to be managed in real-time for the biggest bang for your buck, so to speak. If you want above industry average click through rate and below average cost per click, you need to be on top of it. I know this can be tough for business owners who are running their business while running their ad campaigns, but until you find a Facebook advertising strategy and method that works for your audience, you need manage it in real-time. You will be able to tell within 24 hours if your ad is going to be effective or not. Don’t be afraid to tweak the ad as it’s running, or shut it down and start over.
I’m not sure how quickly Facebook approves ads for everyone else, but for me personally Facebook approves ads within a few hours, and will approve ad tweaks within an hour.
Hopefully this blog helps other Phoenix and Gilbert business owners with their Facebook advertising efforts. If nothing else, give me a call or shoot me an email through the website and pick my brain. Now that I’ve left my contract position with a large marketing firm, I’m able to sit down with local business owners and really get back to what I love – face to face interactions with clients and friends. So let me know what I can do for you!