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Facebook Ads Guide Part 1 – A Basic Introduction to Facebook Ads

Posted on October 31st, 2010 By Under Facebook

It’s finally coming! My Facebook Guide is being put together piece by piece and I’m here to share it with you. Now the first few posts will be aimed towards those that are newer to Facebook advertising, or those that have absolutely no experience on the platform whatsoever. By no means will my guide posts be 100% comprehensive, but I’ll be trying to get you to a point where you can understand and grow on your own.

 

Much of what I cover will relate to my experiences with paid traffic, so those looking for an introduction in to social branding or advertising through some of the free methods like Facebook Fan Pages or groups may be disappointed.

 

So first off, I’d like to start off with the question – Why advertise on Facebook?

 

First of all, it is easily accessible to anyone with a debit/credit card and an Internet connection. If you have both of those, you can create a Facebook account and start your advertising on Facebook Ads in a matter of moments. Log in and check out here to see how you can start advertising if you aren’t already. The simplicity of the registration makes it probably one of the most hassle free sign-ups you’ll get from any ad network.

 

We’ve also got a huge user base congregating all in one spot open to your ads. At the moment, there are around 600 million people with active Facebook accounts. Besides Google, no other website is visited more often than Facebook. It’s a great opportunity to nab some highly targeted and niche leads and sales for any business or individual affiliate marketer.

 

Facebook Advertising is also very cost effective. Quality clicks can start out high in some instances, however, as you learn to optimize ads (which will be covered in a later post), you can drag your CPC down to less than a cent. That’s no joke! I’ve been there and seen it happen. Imagine gaining quality leads for less than a dollar that could make you thousands down the road depending on your niche.

 

Unlike Google, there really is no quality score that determines your cost per click. It’s 80% based off your click-through rate, and 20% based on other factors such as niche (which seems to be the other most prominent factor in CPC). While rules can be thrown around here and there, and many would say their approval process is less than consistent, you can get away with much more on Facebook than you can with Google AdWords.

 

And to top it all off: Demographic targeting. You don’t have the ability to target people in buying mode, which in some instances, can make selling things directly very difficult. However, it is great for generating leads, either for yourself, your business, or through affiliate offers. You can target the people most likely to convert based off of their location, age, sex, relationship status, even their workplaces and places of study. Psychographic is also given access to by targeting through a users likes and interests.

 

It truly is a great and simple platform to work with. It can be difficult to get the hang of or make a profit if you run in blindly, but hopefully my guide and a bit of outside research can help you make the best of the system.

 

In the next guide post, I’ll talk about specific keywords you’ll need to know before you jump headlong into the Facebook Ads pool.

 

Ready to advertise on Facebook, but need a little help getting started? Try my consulting services. Click here for more info!

 

 

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Comments

  1. Very good content Justin. Thanks for sharing. :)

  2. Vance Sova says:

    Hi Justin,

    I'm quite interested in this subject. Facebook seems to have a lot of things going for it.

    Demographic targeting is one of them although I don't know how it's done.

    The need for no quality score as opposed to Google is also a good feature and I read somewhere that the cost is also more manageable.

    I look forward to reading more about facebook in your next posts.

    Vance

  3. brett says:

    Just thought you should know your my new hero!

    Your post on "Why Thailand?" is awesome!

    I've decreased my clients CPL (cost-per-lead) from $75 (google adwords) to $10 using facebook ads while also making 30% of the traffic convert to "likes" on their fan page.

    Here's the issue I'm having which is probably pretty common with facebook ads…

    Facebook ads are like a big box retail store (walmart for example) in the sense that once they realize the product,toilette paper for example, has a high visitor to engagement ratio (CTR's); They almost instantly move the toilette paper to the front of the store therefore rapidly increasing the product exposure (facebook brings your ads with high CTR's to the front of the line in order for them to maximize their CPM's).

    The reality is that as the audience is displayed the ad repeatedly(the product), the users interest/need declines due to over exposure aka banner blindness.

    It's like, "Come on walmart, I bought toilet paper last week. I can only use so much!"

    I guess my question is: When your ads have high CTR's, how do you prevent Facebook from rapidly increasing your impressions therefore over marketing to your audience and resulting in a decrease in user engagement and CTR's?

    Basically, if my CTR's are high, how do I make my ads maintain a small "market share" of ad impressions (small but constant over time)rather then Facebook increasing my "market share" of ad impressions (rapidly increase my impressions).

    I understand when paying on a CPC basis and your CTR's are high, more impression volume to the ads related to move revenue for facebook, however, I'm sure data shows that there is a dramatic dip in CTR's once the impression volume increase too fast too soon (which relates to less advertising revenue).

    Any thoughts or tips on this topic would greatly be appreciated.

    I know my grammar skills suck, hopefully it doesn't negatively reflect as a marketer.

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