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Can a Small Business See Higher ROI Using Facebook Ads Than Larger Organizations?

Can a Small Business See Higher ROI Using Facebook Ads Than Larger Organizations?

Beyond • July 24, 2013

While many professionals are skeptical about using advertising on Facebook, it could still be of some use to small local businesses. We have all heard that large companies like GM and Nationwide have pulled campaigns from the social media monster in the past due to poor performance. Does this mean that Facebook is a money pit for marketing purposes in general, or could it partially be the fault of inefficient skills to produce a campaign that works? Much like Google\'s Adwords, you need to know how to set up the campaign for your goals in order for it to be successful. Here are some things to consider when looking at advertising on Facebook for your small business: Landing Page In order for a campaign to be successful on Facebook, the small business needs to have a landing page that clearly defines what the business does and where it is located, as local companies tend to perform better. The landing page also needs to tie into the ad very closely to give the customer a continuous experience that reinforces their decision to click on the ad in the first place and to interact with you.   Choosing the Right Method When you place an ad on Facebook, you are able to choose between impressions and clicks for the campaign. This means you can either choose to pay for every time your ad is shown to a user (impressions) or only for each time a user actually clicks on your ad to go to your landing page (clicks). There isn’t a right or wrong answer here, you really can and should experiment with both to see which is better for the audience you are targeting with the Facebook ad. How often your ad is displayed is dependent on the bid amount you place and your daily budget. This works in largely the same way that Google Adwords does as it will cease showing your ads once your budget has been reached, and the lower you bid the less likely your ad is to be seen.   Locality One of the reasons why this solution could help a small business even though it failed for larger businesses is that some people prefer to deal with local businesses when possible. If you target areas within 25 miles of your business location you could greatly improve the ad results. If you cannot service someone, why on earth would you ever show them an ad? Facebook allows you to get pretty granular with their users so it only makes sense to leverage that when you setup your ad campaign.   Demographics Facebook gives you a lot of additional control over users that will see your ad including targeting gender, age, marital status, schools attended, or even general interests of a user. While it is true that not all Facebook profiles contain accurate information, many do and this can help you zero in on the right types of users to show your ad to and, maybe more importantly, those that you don’t want your ad to show to.   Direct Categories You can drill down into categories as well and make sure that the products and services of your business actually will make sense to the user. Ideally you want to find people that are right at the point of making a decision as to which company they want to choose to fill a specific need. If you have a catering business, for example, you may look for people getting married. A variety of factors come into play for a successful ad on Facebook. In reality, what may work for one organization might not work for another and while some local businesses have seen a great ROI from Facebook ads, others have lost a great deal of money. It really depends on a lot of factors;the most important being knowledge about your products and services and the type of people that are interested in them. If you do that well, you have a great chance of driving some ROI from your Facebook advertising.


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