[For Beginners] How To Make Extreme Profits on FB on a budget
Here is a small snippet on one of our latest case studies. It is aimed to show beginners that you can be extremely profitable even with a small budget.
The sample is very small, that's true, but this means it could be further optimized to achieve even better results. This campaign have been launched with around 250 different creatives, targeting different cities and demographics.
Average CPM of the campaign: €2,13!!
(This is a "second" world country)
Many people believe that the CPM for newsfeed ads on Facebook is very high. That's true, however, even when starting at $7-9 CPM you can make good profits if you having the right product for the right audience. Newsfeed ads are, in my opinion, one of the best form of digital advertising there is right now. The high CPM is totally fine as long as you are not afraid to test, and spend some money to gain information.
The more experienced you get the easier to be for you to launch campaigns that get profitable in extremely short amount of time.
What kind of experience you need in order to become better?
- You must understand exactly what type of images work for different kind of audiences. That's the hardest, and probably the most important.
- You need to think out of the box when setting up your targeting. Scraping user IDs is something I consider a thing of the past, as it became too dangerous to be worth it nowadays. Therefore learn to adapt and use what FB provides you.
Some more information on this campaign:
1. Targeting:
The targeting was quite precise. It's very important to pre-qualify your customers with your ad. The more pre-qualified people are, the higher your conversion rates will be. Manytimes a good pre-qualification will result in lower CTR.
The total audience for this campaign is 110,000 people, and when on budget this is a good way to be done: 1. Start with very precsise targeting where your audience is expected to be highly interested in what you have to offer. 2. Once you get some money going, scale to the masses with not so tight demographic. (For very large campaigns, you can end up targeting Gender + City, no interest, nothing additional. Do not start with this, do this only if you are going for a very large scale of a few thousand a day.)
2. CTR - ~4.5% on average.
As the campaign was very pre-qualifying, the CTR was kinda lower than usual. Many people can reach 8%+ CTR with newsfeed, I can too. Even though this is giving you much cheaper clicks, you only want to do this when you are going really broad. Having a CTR of 9-10% means you get plenty of curious clicks (almost exclusively).
3. Start optimizing with images, cities, and genders.
The most important part of your ad creative is the image, as it is the biggest - everybody knows that. Therefore you must test hundreds of images in order to find the few golden nuggets that will make you a small, or sometimes big, fortune.
Many times different cities show absolutely different numbers in CTRs and conversions. This is completely normal. (I'm not even mentioning people who target 2-3 countries in 1 adgroup!) Always target only 1 country at a time, and then separate the different cities.
4. CPC/CPM/oCPM
All of these have their advantages. As of recently I have noticed that when I allow FB to bill me whatever they want, the distribution is very good compared to CPC. Just my thoughts.
If you are going with oCPM do not be afraid of high prices. You must be ready to spend at least a few hundred before you gain enough information that will help you make smart decisions
5. ...And don't forget to track...
Good luck!
The sample is very small, that's true, but this means it could be further optimized to achieve even better results. This campaign have been launched with around 250 different creatives, targeting different cities and demographics.
Average CPM of the campaign: €2,13!!
(This is a "second" world country)
Many people believe that the CPM for newsfeed ads on Facebook is very high. That's true, however, even when starting at $7-9 CPM you can make good profits if you having the right product for the right audience. Newsfeed ads are, in my opinion, one of the best form of digital advertising there is right now. The high CPM is totally fine as long as you are not afraid to test, and spend some money to gain information.
The more experienced you get the easier to be for you to launch campaigns that get profitable in extremely short amount of time.
What kind of experience you need in order to become better?
- You must understand exactly what type of images work for different kind of audiences. That's the hardest, and probably the most important.
- You need to think out of the box when setting up your targeting. Scraping user IDs is something I consider a thing of the past, as it became too dangerous to be worth it nowadays. Therefore learn to adapt and use what FB provides you.
Some more information on this campaign:
1. Targeting:
The targeting was quite precise. It's very important to pre-qualify your customers with your ad. The more pre-qualified people are, the higher your conversion rates will be. Manytimes a good pre-qualification will result in lower CTR.
The total audience for this campaign is 110,000 people, and when on budget this is a good way to be done: 1. Start with very precsise targeting where your audience is expected to be highly interested in what you have to offer. 2. Once you get some money going, scale to the masses with not so tight demographic. (For very large campaigns, you can end up targeting Gender + City, no interest, nothing additional. Do not start with this, do this only if you are going for a very large scale of a few thousand a day.)
2. CTR - ~4.5% on average.
As the campaign was very pre-qualifying, the CTR was kinda lower than usual. Many people can reach 8%+ CTR with newsfeed, I can too. Even though this is giving you much cheaper clicks, you only want to do this when you are going really broad. Having a CTR of 9-10% means you get plenty of curious clicks (almost exclusively).
3. Start optimizing with images, cities, and genders.
The most important part of your ad creative is the image, as it is the biggest - everybody knows that. Therefore you must test hundreds of images in order to find the few golden nuggets that will make you a small, or sometimes big, fortune.
Many times different cities show absolutely different numbers in CTRs and conversions. This is completely normal. (I'm not even mentioning people who target 2-3 countries in 1 adgroup!) Always target only 1 country at a time, and then separate the different cities.
4. CPC/CPM/oCPM
All of these have their advantages. As of recently I have noticed that when I allow FB to bill me whatever they want, the distribution is very good compared to CPC. Just my thoughts.
If you are going with oCPM do not be afraid of high prices. You must be ready to spend at least a few hundred before you gain enough information that will help you make smart decisions
5. ...And don't forget to track...
Good luck!
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