In my experience, it’s very rare for a Facebook advertising campaign to perform really well from the day it is launched.
Particularly if the campaign is advertising a business that is new to Facebook and doesn’t have any warm audiences.
But that doesn’t mean Facebook is not worth your time or money. Quite the opposite.
Facebook can be an incredibly effective advertising platform for many different businesses, provided they stick at it.
By making adjustments and optimizing campaigns, you can significantly improve your results and reduce Facebook advertising cost.
I have seen 5x improvements in ROAS (return on ad spend) through campaign optimization many times.
If your campaigns aren’t profitable yet, don’t panic. In 3 months’ timethey could be performing very well.
How you properly optimize a Facebook ad campaign is going to depend on many different factors and is often quite individualistic.
However, there are some key areas and metrics that I focus on.
Is Your Offer Good Enough?
This is often a really hard question for those involved. But it’s critical that you answer it honestly.
Most people dive into Ads Manager and go rooting through the data to find metrics that indicate they should do x or y.
And that is important, but if people aren’t interesting in what you’re offering, nothing else matters.
If you’re trying to sell a product or service that people have seen before and you’re advertising it in the same way people have seen it advertised, then it’s probably not going to work.
Your offers need to be interesting and somewhat unique.
Do you have a brand new or superior product?
Can you beat your competition or price?
Can you be the first in your industry to offer a free trial? Or interest free credit?
If you’re running a campaign that’s not delivering results, then the first thing to think about changing, is your offer.
If you’re 100% confident that what you’re offering is something your target market is interested in, then move onto the next options.
Cost per Conversion
To assess how your campaigns are performing in the first place, you need to know what you’re optimizing for.
Part of that is choosing the right Facebook ad campaign objective. I have seen many people select the traffic campaign objective when they really want to generate leads or sales.
And the other part is knowing your numbers. It’s important to know what you can actually afford to pay for a lead or sale.
If the average customer is worth $2,000 to your business, you might be able to pay $500 to profitably acquire them.
This is really important to know, because you could falsely conclude that a campaign is not working too early, if you don’t have this sort of information.
Obviously most people looking to optimize their campaigns will have conversion costs that are too high.
When a campaign’s conversion costs are too high, and I’ve ruled out my offer as an issue, I move onto targeting.
Getting your ads in front of the right people will make a big difference to your cost per conversion.
These often produce the best results and I would look to include them where possible.
Alongside those, I would look to test as many different targeting options as I can find, that I think are relevant.
Duplicate your ad sets and use a different targeting option for each.
With this strategy you’ll often find a winner.
Ad Relevance Score
Once an ad has received 500 impressions, Facebook will give it a relevance score.
This number shows how well your ads are being received by your targeted audiences.
It’s a number from 1-10 with 10 being the best score.
A score of 8 or above is fantastic.
Anything below a 5 is cause for concern – unless of course you are generating a great cost per conversion.
Low ad relevance scores not only demonstrate how well your ad is performing but they also determine how much your Facebook advertising costs.
Facebook wants advertisers to create interesting and engaging ads, otherwise they’ll annoy their users.
Therefore,Facebook rewards advertisers that have high relevance scores by charging a lower CPM (cost per 1,000 impressions) and punishes those that have low relevance scores.
If your ad relevance scores are low then you should make some adjustments to your ads.
Boring ads nearly always generate a low relevance score.
Think about how you can adjust your headline and imagery to grab and hold your audience’s attention.
You may also want to try changing ad format.
Video ads often perform better and generate a higher relevance score.
If your campaign has been running for a while and you’ve recently seen a drop off in results, check your ad frequency.
Ad frequency shows how many times an ad has been served to members of your target audience on average.
There are exceptions such as retargeting campaigns, but once ad frequency hits 2.5 and above, you’ll often see a drop in performance.
This is simply because the people within your target audience have already seen what you’re offering.
This is a common Facebook advertising issue, particularly with businesses that advertise on a local basis and naturally have smaller target audiences.
To overcome ad frequency issues you can either…
Change your offer.
Or advertise the same offer to a different target audience. But be careful of audience overlap.
I would recommend changing whichever element you think is weakest.
If your offer is rock solid then try to find other people that might be interested in it.
Alternatively, if you have 1 targeting option that has performed very well, then try offering different products and services to them.
Taking the time to optimize your Facebook ad campaigns is crucial to their success.
Whilst there is no set formula for optimization, the main 4 things I look at are:
- The Offer
- Cost per Conversion
- Ad Relevance Score
- Ad Frequency
Which of these 4 are you going to start working on first? Let us know in the comments section.
Guest Post Author Bio
Ben Heath is the Founder & CEO of Lead Guru which produces high quality Facebook advertising resources for business owners, marketers and entrepreneurs.