The cost of marketing can take up a significant portion of a brand’s budget. You should know that you cannot make a profit without investing first.
It goes without saying that as a business owner, you have to be careful which basket you should put your eggs in and where better to start than one of the most effective traffic drivers today: Facebook.
With 2.89 billion monthly active users, Facebook is the best social media marketing tool every company should count on since it has effective targeting options, affordable costs, and everything in between.
The problem, however, is that Facebook ad costs can start to eat away your ad-spend faster than you would imagine if not optimised correctly.
To prevent that, let us discuss the things you need to know about Facebook ads, along with some tips on how to minimise the Facebook marketing cost without compromising on sales.
The Factors that Determine Facebook Ad Costs
Facebook allows you to put an ad on the platform for a fee, and this is where the cost per mile (CPM) comes in. Besides the meaning of its acronym, it refers to the cost per thousand impressions on an ad. It means you will have to pay the Facebook marketing price for every 1000 impressions the ad made.
Here are the factors that affect the CPM.
- Target Audience
- Optimisation Settings
A Facebook marketing company in Singapore can tell that one should expect a CPM to range from S$7.34 to S$19.36 and cost per click (CPC) at an average of S$1.72. But it can still go anywhere from $0.5 – $3.5, with cost per acquisition (CPA) setting you back around $13.89. These costs can be a bit competitive, especially to SMEs.
As these figures suggest, the CPM can considerably differ. Its Facebook ad cost will depend on several factors like the target audience, timing placement, market supply, demand, overall creative quality, and relevance score.
Having that said, let us now look into the ways to optimise your Facebook marketing campaigns and minimise your ad costs:
5 Ways to Minimise Facebook Ad Costs
1. EVALUATE YOUR RELEVANCE SCORE.
The first step to lowering the Facebook marketing price is to know what a Relevance Score is as it directly affects your CPC. In a nutshell, it defines how relevant an ad is to your target audience.
The scoring ranges from 1 to 10. A score of 1 indicates that your ad is irrelevant and no one cares about it, and a score of 8 or higher means your ad matches your market and shows interest in it.
Your Relevance Score is based exclusively on expected positive and negative feedback. That means the more positive interaction you have with your target audience, expect to receive a higher score.
Here are some points to consider if you want to improve your Relevance Score:
- Be specific with your targeting.
- Consider how your image and message will resonate with your audience
- Always refresh your ads
- Test out different types of ads to the same audience
- Avoid using misleading content
2. FOCUS ON A SPECIFIC AUDIENCE.
You have to be as specific as you can when targeting an audience is one of the keys to the success of your Facebook marketing campaign. You can narrow the scope by identifying who you are targeting, and as a result, you can create special offers that your audience might like.
In the same manner, reducing your target audience also allows you to lower the competition from other brands that target the same demographics. It would not only help you trim down your advertising costs, but it would also let you bid only on people who you want to reach.
3. INCREASE YOUR CTR.
To lower your CPC, you should consequently focus on increasing your click-through rate (CTR). That is the one way to increase your Relevance Score since Facebook will get notified once your audience responds to your Facebook marketing campaign in Singapore.
Below are some practical tips to boost your CTR:
- Come up with catchy headlines in your ad since it is the first thing that users notice.
- Use high-quality images of your product with bright and contrasting colours to make it a standout in the News Feed.
- Use the right call-to-action (CTA). Selecting a CTA that connects with what action you want your target audience to do can develop your CTR to as much as 80%.
4. AVOID AUDIENCE OVERLAP.
When running multiple Facebook marketing campaigns, you would encounter an overlapping audience issue. Even though it is not exactly a problem, it is not practical since the same audience will see different ad sets. In the process, they will get annoyed and you are at risk of compromising your ad’s performance.
To prevent such cases from happening, you should use the Facebook Audience Overlap Tool. It can allow you to check if your audiences are overlapping. If they are, you have the option to exclude them to avoid competing against yourself.
Here is how the tool looks.
5.REUSE SUCCESSFUL STRATEGIES
After running several Facebook marketing ads, you can go through the results and determine which posts have the highest engagement rates and take note of their similarities.
Once you have figure out the answer, you can use the same tactic so your other and future campaigns will have higher engagement
As you progress, keep on experimenting with your content. Make sure to work to maintain or surpass your current engagement rates so more people would engage with your brand.
Remember, your goal is to increase your engagement rate while keeping your content relevant to your audience. By taking notes of these tips in your arsenal, you will know the ways on how to manage your Facebook marketing budget.
Start practising these tips and see how much your Facebook marketing expense will change in the future of your campaigns.
When it comes to Facebook marketing strategies, OOm has everything that can help maximise your online presence and increase your brand awareness. Get in touch with our Facebook marketing agency if you need help to grow your business.