In follow-up to last week’s post on initiating a highly targeted and optimized Facebook advertising campaign for sales conversions, we are going to take the information we received from the test campaign and scale up to a larger audience to get more sales conversions and make you more money online.
Analyzing your test ad and audience
After submitting your ad there will be a small amount of time when your ad won’t run until Facebook approves it. This is usually a matter of hours.
Once approved, the testing period will be for the duration you set but should be between 4 and 6 days.
In this time you can see how your ad is performing in real time. We do not recommend making any changes during this test period but instead waiting until the test is complete and tweaking from there.
The Facebook advertising platform will give you lots of information but the most important information we want to look at is the reach, impressions, how many clicks, cost per click, number of conversions, and cost per conversion.
Since you are using these ads to increase your sales or get people to opt-in to something such as a newsletter, you want to know sales conversions and the opt-in conversion rate. This is not page conversions. Be sure to look at this info for all 3 ad campaigns you created to see if desktop, mobile or right-hand side column ads are more effective.
Assuming you see good results here, you are ready to move on. If you are seeing low conversion numbers, you need to revisit the targeted groups you identified and also the ad itself to see what element is not working and makes changes to increase conversions before proceeding.
Scaling up your Facebook advertising
With all the work you put into the test campaign, it’s now time to use those results to get even better results to increase sales or opt-in conversions from your ad budget.
We’re going to start by increasing the audience size. To do so we will now use the remainder of the relevant Facebook pages you identified earlier through your keyword research.
Using another new tool called Facebook Graph Search, we’ll analyze the pages of the first 10k-20k people you targeted and the left over relevant pages.
By putting the page names you identified earlier into Facebook Graph Search, you will get the related fan pages that your audience likes. Given the nature of this, you will get mixed results (very popular pages such as NFL will most likely not be relevant even if your audience likes them) and you’ll have to do some manual due diligence here to filter through which pages are relevant to your niche.
Use Facebook Graph Search to identify what people liked a particular page AND also if they bought a particular product or joined similar groups.
As before, using Facebook Audience Insights, we can also see what people are actively clicking on ads from this new larger audience group to determine their buying potential.
Facebook Audience Insight will also show you more people who have liked a particular and other pages they like to continue to grow your audience from there.
We are now in the final step is to retool the optimization.
At this point you’re basically an ad expert and know very confidently how your ad will perform with your audience and how much it will cost to get them to convert.
You already have a good core group audience and now an additional similarly related audience to target. Using the initial group of 10-20k from your test ad and the groups you identified from the related and relevant searches, you can move forward with your scale-up.
As you create this second campaign, you will use the conversion pixel from the previous ad and set the daily bidding at $20. This time you will also change the way the ad is bid by selecting “Optimized CPM”.
Choose the manual option and you should see 4 boxes appear.
With these options you can now bid on a behavior. This lets Facebook know what you want to spend your ad budget on to get the results YOU want.
For the best optimized Facebook advertising for the best sales conversions, you only want to use the “action” box.
Now you select exactly how much you want to pay for an opt in or sale conversion. This needs to be a reasonable bid or Facebook will not accept it.
To pick this number you should look at the conversion stats and see what it cost Facebook in your initial test ad campaign to bring someone in to your website with your ad. Use this number in the last box.
Since you have the previous conversion pixel installed on the page you’re directly people to from your ad, Facebook has a very good idea of what kind of people are coming to the page from your ads. With this info Facebook can target similar people to get you the most relevant traffic.
The reason this method of Facebook advertising is so optimized is because at this point, Facebook will only get money if they actually get you an action (opt in or sales conversion).
It is now in Facebook’s best interest to give you the most qualified buyers possible to make the most money for you so they receive the kick-back from the ad.
Depending on what your conversion metric is, you may need to adjust daily budget depending on your “Action”.
If you are getting actual sales, you can determine you ROI to choose how much to spend to optimize how many customers you send to you sales page.
$1.75 per sales conversion x 200 conversions = $350 ad spend
If your product profit is over $350 for 200 units, you have a positive ROI.
If you are using an opt in conversion, do what you are comfortable with based on how much you are willing to spend to grow your follower base.
Creating a Custom Lookalike Audience
The final step in optimized Facebook advertising, you will use the information collected from the conversion pixel to make new lists very similar to those that have already worked for a conversion.
After about 500 or 1000 conversions, Facebook will allow you to export your email list or Facebook IDs.
With this list of verified buyers or opt-ins for your specific website, you can now make a Facebook custom audience and ask Facebook to generate a lookalike audience based on that audience.
A lookalike audience will have similar traits and characteristics to the people you have already converted. When creating your list, choose to optimize for ‘Similarity’ instead of ‘Greater Reach’. You can use a 1% similarity or a 5% reach. The precision of this group will be about 99% similar. The greater reach will give you more people but the precision is only about 95% similar which will not give you as precise of an audience making them less likely to purchase.
We recommend the 99% similarity for best results as they are your exact audience. Depending on your audience, Facebook will generate a list anywhere from 500 to 2,000,000 people with the same attributes as the proven audience from your test campaign.
As you did before, look at the 3 platforms (newsfeed, mobile, right-hand column) and only use the one(s) that give the best results.
Create a final new ad campaign with same attributes as before and use the new custom “lookalike” audience based on the old converted audience. Be sure to use the conversion pixel you were using before and again select Optimized CPM with manual bids and enter the most recent cost per conversion from the previous campaign into the ‘maximum per action’ box. Again, you are only paying Facebook each time someone converts, instead paying for ad clicks so this is a very optimized way to use your Facebook ad budget.
If you have a rather large lookalike audience, you can narrow it down by looking especially as the demographics of the converted buyers or opt-ins such as age or gender. Break down the large target audience to the BEST target and make it very specific.
With a sales conversion and direct link to a product sale, there should be no limits to how much traffic you drive as you are getting a direct sale from each ad and you are only paying for a sales conversion.
For an opt-in campaign, you will need to do more calculations to determine how many sales you can make down the road after getting people to opt-in. Utilizing your auto responders and other email marketing campaigns is going to determine how much to spend on this advertising ad budget to maximize your sales. You will need to know your business effectiveness here to know how much you can spend on getting an opt-in to increase your email list to know when/if you are going to get the business down the road for a positive ROI.
You need to know the numbers on what your opt-in conversion to long term sales ratio is so you know what budget will be.
A final word of advice on optimized Facebook advertising for sales conversion is that Facebook will be selective on who it chooses to show your ad to. To keep the experience a social network and not flood newsfeeds and bombard unwilling with ads users, Facebook needs the conversion pixel to know who exactly is should target based on their past actions and not show ads to people that do not interact with them.
What success have you had with Facebook advertising? What methods have you found to be effective in your advertising campaigns and which ones have not been effective?