- Do you feel that the number of responses
you're getting for your Facebook ads
is decreasing each and every single day?
Are you finding it harder to convert people
from your Facebook ads into paying customers
than you did two years ago?
If you think it's hard now,
it is going to keep getting harder and harder.
Hey everyone I'm Neil Patel,
and today I'm going to discuss,
will small businesses still be able
to profit from Facebook ads in 2020?
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Now before we dive into the details
on how small businesses can still do well in 2020,
let me go over some basic stats.
Facebook has over seven million active advertisers,
that's according to
Facebook's Chief Operating Officer Sheryl Sandberg.
Active users 2.4 billion.
Facebook has only 342 active users per advertiser.
Not only are more people promoting ads,
but it's getting harder and more expensive to get clicks.
Now when you look at the cost in clicks
Facebook ads CPC on news feeds
have gotten more expensive this year.
In 2008
Q2
as of roughly 0.43¢,
in Q2 of
2019
0.64¢.
And the CTR of news feed ads has also decreased.
In Q2 of
2018
it was 2.24%,
in Q2
of 2019
it was 1.20%.
According to Instapage the average Facebook ad
converts roughly
9.21%
across all industries.
You would have to pay on average $64
to get nine conversions.
Conversion doesn't necessarily mean a sale either
in this context, it could be just collecting an email right?
So it doesn't necessarily mean you're making a positive ROY.
So the real question that comes to mind is,
hey you're a small business,
how can you still profit from Facebook,
even though ads in many cases are getting less clicks
and is getting more expensive.
Well number one don't go for profit
in the first contact with a prospect.
It used to be that you would just put ads
in front of people,
you would send them to your product or service page,
try to get them to convert, and boom you're making money.
And that's expensive, a great way that we generate sales now
and we found this to be much cheaper is,
we first take an ad on Facebook
drive them to content our educational piece,
educate them. Then we remarket them,
and then show them an ad
that drives them to our product or service page.
Even though we had to show that same user ad twice,
we found that the overall cost to conversion
is far less then we send them to an ad
in the first place.
So instead of sending them an ad straight away,
we first send them to an ad
that goes to an educational piece,
then we market them.
Which is for us when you look at a conversion standpoint
it's cheaper and more cost-effective
then just having ads at the beginning,
send some indirectly to a proctor service .
Secondly use retargeting for your ads
for really qualified prospects.
So what I mean by this is,
one thing we've done to generate so much revenue
from Facebook, this is our highest ROY converting campaign.
When someone visits a checkout page and they don't buy,
we create a video that shows them
what it would be like if they were a customer.
Now if our main offering was
using logic to convince them to buy,
our video will use emotions.
Why you may be wondering?
Well if they didn't convert from logic in the first place,
sending them a remarketing campaign or video
using logic again probably won't work,
so we do the opposite.
If our landing page is try selling through emotions,
our remarketing video uses logic.
In addition to that we make sure we add in
upsells and downsells, which increases the LTV,
which allows you to spend more money on Facebook.
The third tip I have for you is use video ads.
Video ads are way cheaper to expose your brand to people
because even if they don't convert right away
you're getting your brand across,
and as they say in marketing the rule of seven,
the way you build a brand is having someone see
and engage with your brand seven times.
If you use video you're going to get way more engagement
for the price because Facebook
really wants to push video ads over text-based ads.
Fourth use lookalike audiences,
once you have people that are converting,
use the 1% lookalike audience on Facebook.
This will allow you to find other people
who are very similar,
have a higher probability of converting.
If you're not using lookalike audiences
you're doing a ton of ads and blowing a ton of money.
Lookalike audiences will help you fine tune
and save you a lot of cash.
Fifth I want you to test different creatives more often.
You'll be surprised at the difference in performance
when you rotate up your creatives at least once a week.
Heck when I run some of my own campaigns,
we're rotating up creatives
two to three times a week on the low-end
and on the high-end sometimes rotating up creatives daily.
It's that effective by just cranking out so many creatives,
you'll find that they don't have as much fatigue
and your ROY is better.
Next I want you to keep your ads fresh,
it's not just about the,
hey here's what my banner is, here's what my creative is.
It's what are your landing pages?
What's you're copy?
Are you changing things up?
Are you trying a different message?
Are you trying to target a new audience?
If you continually test and tweak and keep your ads fresh
not just on Facebook but remember it's a whole funnel,
you're landing page, the copy on there,
the testimonials, the review.
Changing all that kind of stuff up,
a lot of times bring lights into your campaign
and will cause you to get more conversions.
Next I want you to monitor your ad's frequency.
If people keep seeing your ads multiple times,
you're either not reaching new people,
or people keep seeing your ads without converting.
You need to stop that.
Those two factors will make your ad score decrease
and make your cost increase.
So if you fix that you're going to be better off.
If you need help maximizing your Facebook ads,
you can check out my ad agency Neil Patel Digital,
and if have questions leave a comment.
If you enjoyed the video, like it, share it,
tell other people about it. Thank you for watching.