Facebook offers you as an advertiser great opportunities. Even with a small budget, you can build successful Facebook campaigns that ensure a continuous flow of new customers. But after the initial success, it can just go to waste. Reach, involvement and the number of requests/leads or sales are decreasing. The return on investment of your campaign simply collapses…
5 costly mistakes people make when advertising on Facebook
In this blog, I explain 5 possible causes that can make you pay too much for advertisements or get too little results. If you are just getting started with Facebook ads, I advise you to read this article first:
Error 1: Bidding against yourself
Like Google Ads, Facebook Ads are placed on the basis of an auction system and bids for views, clicks or conversions. A view of your ad is based on:
- Advertisement Quality
- Target group Relevance
- Bid Strategy for Campaign
When setting up your campaign, of course, you choose the option lowest cost. See the image above. This means that Facebook automatically offers more to get more results out of your campaign. Facebook does this very well unless you use the same target group in multiple campaigns or advertising sets. Then you bid against yourself, which is not in favor of your wallet…
Example: When in a Facebook account 2 campaigns have been created. In both campaigns, the same 2 target groups [SME owners] and [self-employed persons] are used. If you set this up in this way, you can promote with 2 different advertisements at the same time to exactly the same target group. In this way, you compete with yourself.
Accounts built up in this way will either spend far too much per intended result or will no longer be shown at all. If you do want to run several campaigns, you will have to split up and/or exclude target groups so that you do not compete with yourself.
Error 2: You are using too low a bid limit
When setting up campaigns, Facebook offers you the possibility to set a bid limit. A bid limit is a maximum price you want to pay for clicks, views or conversions. If you set the bid limit too low (which is tempting of course), your ads will not be shown at all.
Error 3: You are not using Budget Optimization
It is always wise to test multiple advertisements in one campaign. For example, you can vary ads based on different photos, ad texts, header lines, and CTA buttons. If you don’t use Budget Optimization, Facebook will continue to distribute the budget evenly across the ads. Even if one or more advertisements are underperforming.
The way to prevent this is to enable the [Budget Optimization] option when setting up your campaign. See the image below. CBO uses your campaign budget and your bid strategy – which might be, for example, the lowest cost per action (CPA) or highest return on ad spend (ROAS) – to automatically and continuously find the best active opportunities for results across your ad sets.
Error 4: You have fewer conversions than possible
The ultimate goal of every Facebook Marketing Funnel is of course to generate leads, requests for quotes, customers or direct sales. After all, we don’t advertise because we think Mark Zuckerberg is such a nice guy…
If your campaign doesn’t realize conversions or sales, you will have to pay more attention to conversion optimization. On the one hand, you can work on your offer (how to make it more attractive). On the other hand, you can work on the way your target group converts faster. For example, a faster website, a simpler form or checkout page.
Another possibility is to change your bid strategy. Automatically this strategy is set to lowest cost. If you use the \Target Costs’ option and set it to the maximum that you are willing to pay, you may be able to realize more conversions. Make sure you enter enough budget in the campaign and don’t set the target costs too low. Otherwise, you will achieve the opposite.
Error 5: Failure to take the relevance diagnostics into account
The relevance of your Facebook ads is a rating from Facebook that is divided over three parts. The new metrics are quality ranking, engagement rate ranking and conversion rate ranking.
- The quality ranking metric will measure an ad’s perceived quality compared to ads competing for the same target audience.
- The engagement rate metric will work the same way, showing an ad’s expected engagement rate compared to ads competing for the same audience.
- The conversion rate ranking shows an ad’s expected conversion rates when compared to ads with the same optimization goals and audience.
Relevance diagnostics say something about the relevance of the advertisement for the target group of the campaign. This score is lower when someone clicks on “I don’t want to see this” and higher when people look at your video or click more. If your ad has a relevance below the average, your ad will still be shown but you have to pay a lot more for a result than if your ad scores above the average of other ads.
More reasons why your ad relevance is below average:
People see your ad too often;
Your ad is not good enough;
The wrong target group is selected.
More blogs from FML Marketing
Thank you for reading our blog 5 costly mistakes people make when advertising on Facebook. FML Marketing is a digital marketing agency located in Estepona on the Costa del Sol. We are Facebook advertisement experts. If you have questions or if you want to improve your Facebook ads, feel free to contact us. Use the form below, or select our contact page from the header.