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5 Essential Facebook Advertising Factors That Affect the Return-On-Investment (ROI)

By Varun Bhate

Facebook advertising is the most cost-efficient & focused digital marketing channel. This blog is for all those who are looking to go for digital marketing. Facebook ads are best because they allow advertiser to show audience depending on their age group, their interestes, depending on the demographic region they live & much more.

                We have also written a blog 5 Factors To Consider Before You Select A Digital Marketing Agency in 2020 which will provide you valuable points to consider while looking for a best digital marketing agenct in Pune or anywhere.

So let’s start !!!

1. Audience available

Facebook has billions of users. But few of them are really interested in our offering or they NEED what we are offering. So before starting any campaign, a digital marketing company must verify the available audience on Facebook from “Facebook Insights” which is a FREE but very effective tool provided by Facebook.

It gives you in-depth data about the age group, marital status, education, field of working and much more. The more the available audience, the less will be the cost and vice-versa.

TIP: Use different tools like audience insights and Google analytics tool to get more information about your target audience.

2. Engagement Rate

Whenever we run an ad on Facebook or Instagram, the engagement rate plays a vital role in giving you the minimum CPC (cost-per-click) cost.

The more the audience engagement, the less will be the cost. The factors that affect the engagement rate are Ad creative (Image or video), description and above that the offer viewers are getting. When these 3 factors are strong our ad gets more engagement and ultimately leads to less cost per result.

TIP: Use bright color creatives, eye-catchy punch lines and offer the best deal to your buyer.

3. Need of your product or service

Need of your product to the market can greatly affect the price of your ad as engagement affects. Before you start facebook marketing do in-depth research about the highlights of your product and see how they can help the audience. Also, they can be used in the ad copy of your ad.

If your product is providing great value or adding some good value in your audience’s life, you will get great engagement which will help you in getting better CTR.

TIP: Get in-depth insights about your offering and the benefits the user will get by using it.

4. Objective of the campaign

Most of the time wrong objective leads to more cost of the ad as the user doesn’t get what he wants after clicking the link so click-through rate decreases drastically and the ad gets a low-quality ranking.

When quality ranking decreases Facebook charges more

cost to show our ad to the viewers.

TIP: Before starting the campaign select your objective wisely if confused allocate a small amount of budget to those objectives and see which one is performing better.

5. Competition and uniqueness of your product or service

Nothing can work if your product is not unique or you can not display its uniqueness compared to its competitors. Most of the time the product is good but the marketing company fails to show its uniqueness over the competitors.

The product can be shown but service can’t be shown physically, so it is more difficult to market service compared to the product. Service advantages can only be felt and they are intangible.

TIP: When advertising a product, make a video showing its use and show its advantages through the video. In case of service, use testimonial videos of your happy clients and display highlights of your service.

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