How to Effectively Use Facebook Ads for Local Businesses
For your business success, you should opt for easier and cost effective ways of promoting your business. However, at times, you might advertise in one of the social media platforms and end up feeling like you just wasted your time and threw away your money. That should not happen anymore. You can start using Facebook ads to promote your local business. Here is how to do it.
1. Start by organizing your foundational elements
Before you start your advertising campaign, you have to set up the Facebook tools you require. For this case, you have to establish a business page on Facebook and then use Business Manager to make ad pixel and account. Alternatively, you can add your established Facebook account to Facebook Business Manager. After setting up your Facebook tools, calculate your customer’s lifetime value. That will help you
make and promote budget-appropriate offers on the social media platform. How do you calculate the value? This is the formula. (Average Sale per Customer x Monthly Frequency) x 12 Months = Annual Customer Value (Annual Customer Value x 5 Years) x 2 Referrals = Lifetime customer’s Value
For instance, if every customer spends $20 per every visit and visits your store at least two times in a month, then your business will earn at least $480 ($20×24 visits) per year. The lifetime value of the customer will stand at $2400 ($480×5 years) – assuming that the customer will stay with you for five years. The formula is also applicable in social media marketing. Use the lifetime value to develop a good budget.
2. Determine the target audience
When it comes to social media marketing, identifying the people interested in your products is easier. First, you have to realize that every person reacts in a way different from that of others. New moms might not be ready to buy your product but others might be good targets.
By understanding your customers, you will have an easier time addressing their unique situations and as a result improve the performance of your Facebook ads. To create a custom audience on Facebook, open the Business Manager and select Audiences situated in Assets column.
Click Create Audience and finally select Custom Audience from drop-down menu. It is that simple and most importantly, you can segregate your target audience in various ways.
3. Use Engagement Campaigns to promote your business
Engagement ads should help you influence your target audiences engage with all your posts. Facebook algorithm optimizes your ads to ensure that the largest number of people is reacting to your posts. Engagement ads are more like boosted posts.
Use Ads Manager to create the engagement campaigns and then split test your various audiences. That way, you will manage to test your ads with every custom audience you have made and determine the one that generates better engagements.
To benefit from Engagement Campaigns, start by publishing an offer on your business page. Proceed to Facebook Business Manager. Click on the ad account. Click the Create button. Select Engagement. Click on the Post Engagement Tab and enter the name for the ad campaign you are about to start. Serve the ad to the saved custom audiences.
4. Use website conversions to deliver your ads
For your website conversion campaigns to be successful, install Facebook pixel on your business website. In the Ads Manager, start a new campaign and then choose Conversions. Name the campaign and add “Conversion”. Select the Facebook pixel you added to your website at the Conversion section. After that, you will be able to target your existing custom audiences.