How to increase the effectiveness of Facebook ads and how to measure cost effectiveness?

More than 4 million advertisers around the world use Facebook ads because they allow detailed targeting settings and a variety of ad types to choose from.

Facebook ads are highly effective in diffusing information and can be expected to have many effects, such as increasing brand awareness . Isn’t there a lot of people who are in trouble?

In this article, we will explain the effects you can expect from Facebook ads, how to check cost-effectiveness, and 7 points to improve cost-effectiveness .

Table of Contents

Effects that can be expected from Facebook ads include increased brand awareness, induction and conversion to the company’s website and EC sites that sell products, and diffusion through “likes” and sharing.

When placing an ad, you can choose the purpose from “increase brand awareness”, “reach”, “lead acquisition”, “conversion”, etc., so you can increase the effect by setting according to the phase of purchasing behavior .

The indicator that shows how much revenue was generated for the advertising cost is called “Return On Advertising Spend” . Higher numbers represent higher earnings.

In this chapter, we will introduce three reasons why Facebook advertising is more cost-effective than other advertising media.

1. Highly accurate user targeting

Facebook has a real-name registration system, and is an SNS with relatively high database integrity. Therefore, highly accurate targeting is possible using Facebook’s own data, including gender, age, user hobbies and interests, and behavioral information such as “Like”.

Appropriate targeting and delivery of Facebook ads to users who are most likely to lead to conversions are efficient and effective.

2. Because the cost per click is cheaper than other advertising media

The cost per click (CPC) for Facebook ads is at least 100 yen, so you can advertise cheaper than other advertising media.

In the case of general listing ads, the price per click is 200 yen or more, and the price range varies greatly depending on the keyword. Keywords with low competition can be published for less than 100 yen, and in some cases it costs around 1,000 yen.

On the other hand, Facebook ads have high targeting precision and tend to have a higher click-through rate (CTR) than listing ads with the same budget, so as a result, it is possible to operate with a lower cost per click.

3. Because it can be linked with Instagram

The third reason why Facebook advertising is more cost-effective than other media is that it can also be used to distribute ads to Instagram.

Instagram has 33 million monthly active users in Japan, and when combined with Facebook’s 26 million monthly active users in Japan, ads can be delivered to approximately 60 million users.

Since Instagram is under the umbrella of Facebook (Meta), it is possible to distribute ads from the Facebook platform to Instagram simply by linking accounts, which is a strength not found in other media.

Here are 7 tips to improve the effectiveness of your Facebook ads.

1. Improve creative quality
2. Try to change the type of ad for each campaign
3. Leverage Custom Audiences
4. Use automated bidding
5. Check other companies’ advertisements using the advertisement library
6. Verify effectiveness based on effectiveness measurement indicators
7. If there is no effect, make a hypothesis of the factor and verify it

1. Improve creative quality

For Facebook ads, it is important to improve the quality of creatives such as images and videos in order to attract users’ interest. Here are some specific points to improve your creative quality:

Create images and videos based on creative recommendations

With Facebook Ads, each ad has creative recommendations. By creating images and videos based on creative recommendations, your ads will look better when displayed, leading to improved brand image and click-through rates.

Meet target needs

Use Facebook ads, which allow detailed targeting settings, and aim for creatives that match the needs of the target you want to set, such as hobbies, interests, and areas of interest, as well as age and gender.

Be Creative That Fits Into Your Timeline

When distributing Facebook ads to the news feed, if the feeling of advertising is strong, it may give the viewers a sense of psychological resistance. As an advertisement, it is important to have content that attracts the interest of the target, and at the same time, it is also important that the creative fits in with the timeline. To do that, it’s a good idea to be conscious of natural creatives like regular posts.

Test multiple images and focus on the ones that work best

Facebook Ads allows you to use up to 6 creatives in a single ad, so test and compare multiple images and focus on what works best.

2. Be creative with different types of ads for each campaign

Changing the type of ad according to the purpose of the campaign is also an important point in increasing the operational effectiveness of Facebook ads.

Specifically, if you want to introduce products with dynamic elements, use “video ads” and “stories ads”, and if you want to introduce multiple products in the same category, use “carousel ads”, “slideshow ads”, ” It is a device such as using “collection advertisement”.

3. Leverage Custom Audiences

Facebook Ads has a “Custom Audience” feature that finds existing customers among Facebook users. Custom Audiences can also be used to deliver ads to lookalike audiences.

4. Use Automated Bidding

There are two types of bidding on Facebook: manual bidding and automatic bidding. For manual bidding, it is necessary to set the upper limit of the bid price, and know-how of advertising operation is required.

If you are a beginner, it is easier to get results with automatic bidding, so we recommend using automatic bidding until you get used to operating Facebook ads.

5. Use the ad library to check other companies’ ads

The “Ad Library” provided by Facebook Ads is a service that allows you to view advertisement information on apps and services affiliated with Facebook.

By checking the advertisements of competitors, you may get hints on operations from a new perspective, so make good use of them.

6. Verify the effect based on the indicators of effect measurement

In order to achieve results with Facebook ads, it is also important to verify the effect based on the indicators of effect measurement. Here are five ways to check the effectiveness of your Facebook ads.

1. facebook ads manager
2. facebook pixel
3. Facebook A/B testing
4. Facebook Brand Survey
5. Facebook holdout test

6-1. Facebook Ads Manager

Facebook Ads Manager is the basic tool for creating and managing Facebook ads. Specifically, you can create ad campaigns, manage multiple ads at once, and check ad performance.

Check if the click-through rate is sufficient for the number of targets, and if not, improve the targeting, bid price, creative quality, etc.

6-2. Facebook Pixel

Facebook Pixel is a tool that allows you to analyze user insights and behavior by installing dedicated code on your website. Increase targeting accuracy and help optimize conversions for Facebook ads.

6-3. Facebook A/B test

Facebook’s A/B test is a tool for comparing hypotheses A and B. For example, if you want to measure and compare the effectiveness of two strategies, or if you want to measure changes you make to your ads.

6-4. Facebook Brand Survey

The Facebook brand survey is a function that aggregates the impression value that users have for products and brands in a questionnaire format. It will help you to measure the effect when the effect is difficult to quantify, such as the purpose of advertising is “raising brand awareness”.

6-5. Facebook holdout test

The Facebook Holdout Test is a tool that compares users who have had the opportunity to see your ad with those who have not, to see how your Facebook ad contributes to actual conversions. It helps clarify whether it works or not.

7. If there is no effect, make a hypothesis of the factor and verify it

If you don’t see the expected effect, let’s analyze the factors. Some of the factors that affect the performance of your ads include:

1. Too many split campaigns
2. Audience too narrow
3. Ads not suitable for Facebook

7-1. The campaign is divided too much

If your ad sets and creatives are mostly the same, unifying your campaigns is more efficient than splitting them up.

7-2. The audience is too narrow

The ability to set detailed targeting is a great advantage of Facebook advertising, but if the target is too narrow, the chances of displaying the advertisement will be extremely reduced, and the effect of attracting customers will decrease.

If you have a 5% CTR and a 1% conversion, it’s extremely difficult to get conversions with a potential reach of less than 1,000 people. It is a good idea to set the audience within the range where you can secure the potential reach calculated backward from the expected click rate and conversion rate.

7-3. Ads are not suitable for Facebook

Unlike search engine ads, social media ads tend to favor organic advertising. Please be aware that if you use the same advertising material that you have used in other advertising media, it may not lead to results on Facebook.

There are cases where the cost of acquiring a customer has improved by more than 20% due to the distribution of natural advertisements using content created by general users (UGC). Success stories are presented in this article.

One of the functions of Facebook Ads Manager is the “simulation function” that can predict the return on ad spend .

When you create a new campaign in Facebook Ads, set your budget and duration to see your estimated daily reach and conversions. Since the effect can be predicted in advance, use it as a basis for deciding whether the budget and targeting are appropriate.

Facebook ads are more cost-effective than other advertising media due to detailed targeting settings, a variety of ad types to choose from, and low costs.

You can check the cost-effectiveness of your ads with Facebook’s official tools such as Ads Manager. It is necessary to check whether or not