Running Facebook ads can indeed be a great idea. It's one of the best ways…
Do you use social media to nurture relationships with your customers? Want to reduce the cost of customer acquisition? Want to learn How to Scale Up Facebook Ads for Customer Acquisition & Retention Successfully ?
Trust me on this; being utterly aware of this business trajectory may help you avoid devoting the bulk of your marketing efforts and resources to customer acquisition.
Advertisers on Facebook have a plethora of targeting and campaign tools at their disposal. Unsurprisingly, businesses of all sizes — from small mom-and-pop shops to Fortune 100 corporations — use Facebook’s advertising platform.
While having an abundance of advertising options is a marketer’s Disney Land, it can also make getting started intimidating.
If the massive ad options get you overwhelmed, review the following six categories of Facebook ads and learn a thing or two on how they might be applied to your business and customer acquisition & retention journey.
What you’ll learn
- New traffic generation ads
- Customer thank-you ads
- Existing customers new product ads
- Abandoned cart ads
- Dynamic ads
- Lead ads
#1. New traffic generation ads
Whereas retargeting is beneficial, it is ineffective unless you are driving high-quality visitors to your site. It’s usually a good idea to create a Facebook campaign aimed at attracting new clients. I refer to this as a first contact point advertisement because it is likely the first time the person watching the ad has heard of your business.
For clarity, we’ll use an example of a traffic generation ad from DreamCloud Sleep, in which they announce their brand and product to their audience:
Since you don’t know about the people reading your ads, this type of ad will often have a lower click-through rate (CTR) and a higher cost per click (CPC) than retargeting campaigns.
However, there are a couple of strategies to reduce the cost and improve the performance of a first touchpoint ad.
Graph search & Audience Insights
Facebook offers advertisers a slew of robust free tools. Audience Insights enables you to access many demographic, behavioral, and interest information on all Facebook users.
You may enhance the utility of this data by filtering it according to specific sites, interests, locations, and demographics.
Input the URLs of your competitors’ websites into Audience Insights to learn further insight on your possible target audience.
This search will yield a wealth of information on Facebook users who like your competitors’ pages, which you may use to target your first Facebook advertisements.
The Lookalike Audience
If you already have a client or prospect list, you can quickly import it as a new Custom Audience in Ads Manager.
Once that audience is created, it can create a Lookalike audience of between 2 and 20 million people. This new audience will consist of Facebook users who are the most similar to your present clients, making them more targetable.
The A/B test
A/B testing your Facebook ads is always a good idea, regardless of the type of ad, but it is crucial to test your first touchpoint ads. Create two or three copy variations and another two or three creative variations for a new campaign. These variants should be tested on a variety of audiences.
You do not need to spend a fortune to achieve this well. You can invest a few bucks per day for a week in each variation and then assess the results. Increase expenditure on your top-performing text, creative, and audience after examining the data.
Begin small and iteratively when advertising on Facebook. Experiment, track outcomes, and iterate. The Facebook ad types discussed in this article could form the basis of a long-term social media marketing strategy for your company. After you’ve finished reading, it’s time to begin testing!
#2. Customer thank-you ads
As you probably know, many business owners have the poor habit of focusing all of their marketing efforts exclusively on converting leads to consumers. This is a massive error.
It’s a lot easier to convert a new customer to a recurring customer than convert a cold lead to a new client. And acquiring a new customer is frequently substantially more expensive than retaining an existing one.
As such, it’s necessary that you, for instance, advertise in your store’s thank-you section. For two days following their purchase, new consumers see an ad including a 30-second video of you personally thanking them for their business.
These ads generated substantially more engagement and organic reach per impression than any previous ad you’d run.
The objective of this ad is to increase brand loyalty and client pleasure. Surprisingly, it also results in a significant increase in the number of first-time consumers who become repeat customers within, say, two days of their initial purchase.
Take this a step further by establishing a customer loyalty program that fosters these ties and increases repeat sales.
#3. Existing customers new product ads
As indicated herein already, business owners frequently devote insufficient marketing resources to their existing consumers.
It’s incredible when you realize the probability of producing a sale from a new customer is between 5–20 percent, and the likelihood of making a sale from an existing client is between 60–70 percent, according to SignalMind.
What’s more astounding is that recurring customers spend an average of 33% more than new customers and that 80% of your future income will come from just 20% of your current consumers.
Given the data on repeat consumers, it’s a no-brainer that the first ad you run when launching a new product should be an announcement to existing customers.
HelloFresh employed this strategy to advertise their new sub-brand, Green Chef. They collaborated with influencers to distribute targeted Facebook ads to their existing consumer base, introducing the brand’s latest addition.
#4. Abandoned cart ads
According to Baymard Institute data, over 70% of customers abandon their carts. In other words, for every ten consumers who add an item to their cart, approximately seven will abandon the transaction.
How do you entice these shoppers to return to your store to complete their purchases? With retargeting, you may target these users with a highly targeted Facebook ad. These ads frequently include an incentive, such as free delivery or a discount, if the user returns to complete their purchase.
I’ve discovered that incorporating a humorous video into this type of ad results in much more spectacular outcomes. At one point, I ran an abandoned cart ad for my Lint removal store that included a 30-second video of me explaining to the audience that carts have feelings and are distressed when they are abandoned. While this may seem trivial, this campaign generated a 20x return on investment.
#5. Dynamic ads
When prospects visit your site and then log into Facebook, they will see an ad featuring the exact products they were viewing on your site. As a result, the ads people see are highly tailored and pertinent.
Multiple-product line-Carousel ads on Facebook are a type of dynamic advertisement that promotes a collection of multiple merchandise from your online store.
Each product includes a caption, an image, and a link to the product’s destination URL. According to Facebook, advertisers who utilize the carousel ad type save 30–50% on acquisition costs and 20–30% on click costs (CPC).
Additionally, you can create specific audiences for your carousel ads. This might assist you in curating more focused sets of products based on the audience.
For instance, your website may provide product categories. You can create carousel ads for various categories and display them to users who have visited websites in that category.
Utilize the Product Catalog Sales objective when creating a Dynamic Ad. I’m sure it will rapidly become one of your favorite sorts of Facebook ads. The following explains why:
The accomplishment of multiple objectives
You can target four distinct audiences with dynamic ads:
- Added to cart but not purchased
- Viewed but not purchased
- Cross-sell products
- Upsell products
The ad will be optimized for each objective automatically based on the audience you’ve chosen. Again, this saves time and results in improved results.
Run Campaigns in perpetuity.
You’re probably aware of how updating your creative can prove time-consuming if you run several ads. With dynamic ads, you may set them and forget them. Keep an eye on performance!
If you run a dynamic ad, the copy remains the same for everyone who sees it, but the creative is unique and tailored to your website’s viewers’ behavior.
Numerous of Facebook’s most prominent marketing partners have seen great results with dynamic ads. According to Facebook, Wayfair exceeded its customer acquisition goal by more than 20% due to dynamic advertising.
It’s simple to see why the ROI is so high, given that it’s the most personalized, targeted, and relevant ad organizations can run—short of designing a separate ad for each Facebook user.
#6. Lead ads
The lead ad unit simplifies the process of collecting email addresses and developing email lists. Your prospects can join up for an email list-among other things-with as minimal effort as it takes to like or share a post with this ad unit.
The advantage of the lead ad unit is that Facebook automatically populates most fields a prospect would usually have to fill out manually. This decreases friction, increasing their likelihood of following through.
Lead ads are an excellent alternative if you want to expand your email list. You may employ automation by connecting your lead ad to your email service provider via Zapier. New contacts get added to one of your lists and incorporated into a custom automated procedure.
You can check with our additional resources about Facebook advertising that include:
How to Scale Up Your Facebook Ads On a Healthy Return on Ad Spend (Here)
Common Facebook Ad Mistakes: A Look At How to Avoid Them (Here)
Facebook accords you access to a slew of targeting and marketing capabilities in the age of social media. Businesses of all sizes use Facebook’s advertising platform, from small mom-and-pop businesses to Fortune 100 businesses.
Advertisers who run carousel ads save between 30% and 50% on acquisition costs and between 20% and 30% on click costs.
Converting a new customer to a recurring customer is far easier than converting a cold lead to a new customer.
Over 70% of customers abandon their carts, according to Baymard Institute data. Around seven out of every ten buyers who add an item to their cart abandon the purchase.
You can advertise your new sub-brand by engaging with influencers to send targeted Facebook advertising to your existing customer base.
A new traffic-generating ad is a first contact point advertisement, as it’s usually the first time the person viewing it has heard of your business.
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