Sophia Capone

Calculating Your Optimal Facebook Budget

Posted by & filed under Blog.

It can be difficult to know where to start when it comes to selecting a budget for your first Facebook campaign. But there are some important considerations you can make ahead of time to help you set realistic expectations based on the specifics of your campaign and goals.

The power of your Facebook advertising dollar depends on many factors including ad type, audience composition, and ad delivery schedule. Luckily, you can fill in most of the blanks in the budgeting equation before you spend a cent.

After you’ve created your business’s Facebook page and set up a Business Manager account, you can determine realistic projections for return on ad spend by following the steps below.

Go through the first steps of the campaign creation process, plugging in basic campaign information. Follow the prompts in the Ads Manager to:

  1. Choose an Ad Type Based on Your Campaign’s Objective
    • What do you want to achieve by advertising on Facebook? More importantly, what action do you want Facebook users to take when they see your ad? Ad types can prompt users to ‘like’ or follow your company page, click to your website, download your app, or take one of many other actions.
  2. Define Your Audience by Selecting Your Targeting Parameters
    • Who do you want to be engaging with your ads? Deliver ads to the right Facebook users by utilizing some of the many targeting parameters offered, ranging from user interests to demographics to shopping behaviors.
  3. Determine When & How Your Ad(s) Will Be Delivered
    • For what date range do you want your ads to run? How do you want to bid on placement?
      1. If you’re not sure how to make the most of your budget (concentrate spend in shorter time frame or longer period), you can test out a couple options at various spends.

Once you have set these variables, you are ready to do some calculations to figure out how different combinations of spend and delivery range will result in a positive return.

Use reach estimates to calculate estimated results at various spends. Create a spreadsheet where you can record what your expected campaign results will be when adjusting budget and/or delivery date ranges. See the figure at bottom for an example of what this spreadsheet can look like.

To find ROAS, we need 1) spend and 2) revenue. While identifying spend is straightforward, we have to calculate an estimated revenue based on the number of anticipated converted clicks from your ad campaign:

  • Step 1: Identify estimated total clicks
    • Multiply [daily reach] X [# of days your ads will run at the given date range] X [your estimated click-through-rate (CTR)]
      1. If this is your first time advertising on Facebook, you likely won’t know what a realistic CTR is – in this case, use an industry benchmark
        • I always recommend rounding down a bit so that your estimate errs on the conservative side
      2. Once you have run some ads on Facebook, you’ll have a better idea of what your CTR typically is and can replace the industry benchmark with the CTR that reflects your ads’ typical performance
      3. Note that because Facebook provides a range for estimated reach, you should calculate both ends of the range to understand both worst and best-case scenarios
  • Step 2: Estimate attributable revenue
    • Multiply [your estimated clicks] X [your conversion rate (CVR)] X [your average order value]
  • Step 3: Calculate ROAS
    • Finally, calculate [revenue] / [spend] for each combination
  • Step 4: Weigh your options
    • Look at the ROAS ranges each combination of spend and delivery result in and make a budgeting decision based on how effectively each is expected to perform.

Key Questions to Keep in Mind:

After your first campaign or two are complete, re-evaluate the following factors and adjust your return calculations and corresponding budget decisions accordingly:

  • Estimated reach – Was Facebook’s estimate low or high?
  • CTR – Do your campaigns on average perform better or worse than the benchmark industry standard used in your calculation? Is there a lot of variation in CTR between ads or audiences?
  • CVR – Is the conversion rate of those acquired through Facebook lower or higher than your average?
  • Average Order Amount – Is the value of each individual acquired through Facebook lower or higher than your typical customer, on average?

As your Facebook campaigns get more sophisticated, you can also start to test different audience compositions, ad types, budget allocations between multiple ad groups, and more.

 

Sample Social Media Budget Matrix – tests different budgets and delivery dates.

TriblaVision_Facebook_Advertising

 

 

How to Harness the Power of Video Marketing

Posted by & filed under Blog.

Video marketing is booming, and it’s not difficult to understand why – from telling a rich, engaging story to demonstrating clear step-by-step directions, videos can do more than other types of media. As the time spent by the average consumer watching videos for educational, entertainment or other purposes increases, it is becoming all the more crucial for your business to hop on the video marketing bandwagon to stay relevant.

Read on for more about how video marketing has changed the marketing landscape, and what you can and should do to keep up. 

On Your Website

Improve your search ranking. One of the biggest challenges businesses face in the search environment is getting people to their website in the first place. While beating out the competition on Google paid search is a constant battle, websites with videos are 50 times more likely to get first page placement for relevant searches.

Keep people on your site longer. Humans are hard-wired to process visuals 60,000 times faster than text. A welcome video right on your homepage can spell out your value-adds and differentiators while also demonstrating creativity and communicating your company’s personality and voice. Plus, you’re more likely to grab a user’s attention, keep them on your website longer, and be remembered.

Tips For Adding Video Marketing to Your Website

  • Keep it short and sweet. To maximize engagement, your video should be no longer than 2-3 minutes.
  • Invest in quality. A poor quality video on your homepage might do more harm than good. Producing a professional-quality video, whether through a freelancer or production company, can be expensive – be sure you have the funds to create something great before diving in.
  • Embed the video on your site to optimize load time. Today’s internet users are impatient, and studies show that 57% of mobile users will abandon a website if they have to wait more than three seconds for something to load. Embed the video thumbnail on your site instead to quicken load time – step-by-step resources online can easily walk you through the process.

On Social Media & Email

Increase clicks & engagement. The numbers say it all:

  • Including video marketing in email and on social media has shown to double click-through-rates.
  • On social, audiences engage with video content 10 times more than static content (embed, shares, likes or comments).
  • Almost a third of marketers agree that video conversion rates consistently outperform other marketing content.
  • Video marketing increases your social network by generating more shares than text and images combined – 1200% more!

Build a qualified audience for remarketing on Facebook. A new capability from Facebook allows you to build a custom audience of users who have engaged with videos you’ve posted or promoted. You can target anyone who has watched three seconds of one of your videos, 95% of your videos, or somewhere in between. Identify how strongly qualified your list of leads is, and determine the appropriate content to remarket to them. Similarly, most email platforms allow you to track clicks, from which you can generate audience segments that should be targeted with additional content.

Tips For Using Video Marketing on Social Media & Email

  • Be aware of the setting. Consciously think through where and how your video will be watched – which devices, in what type of setting, etc. For example, more and more Facebook traffic is on mobile devices, where videos are muted by default. So add captions and keep videos short (1.5 minutes or shorter).
  • Focus on an engaging first frame. For videos on social media and email, you can skip the intro. People want to be engaged immediately. Capture users visually and concisely from the get-go.

Video is forecasted to grow to over 80% of all internet traffic by 2019 – be a part of that growth and start reaping the many benefits of adding video marketing assets to your marketing repertoire.

Get filming!

3 New Facebook Features Every Small Business Should Know About

Posted by & filed under Blog.

From the layout of the News Feed to the way you ‘like’ a picture, Facebook is constantly changing. Especially in its function as a platform for businesses, Facebook has made great strides and is evolving continuously.

Read on to learn more about new, relevant features that are simple to implement and will take your company profile to the next level.

  1. Shop Section

The Shop Section is a great add-on Page for retailers that want to give Facebook users the option of browsing and buying products directly from their Facebook profile.*

A “Page” is an optional profile feature that Facebook has developed to allow businesses, brands and organizations to interact with consumers and provide more information in a way that is easy to digest. When you add a new Page to your profile, it is incorporated as a tab in the navigation bar, but, depending on its function, can also appear on your main profile page. The Shopping Section is an example of a Page that has its own clickable tab, but also can be seen and accessed from the main profile.

With a Shop section, you can:

  • Upload products and product information directly within Facebook – there is no product feed or catalog required
  • Curate and customize your products into collections or featured showcases
  • Manage orders from your Facebook account
  • See insights on how each product is doing in terms of views, engagement, etc.

*This is a feature being tested now, and is not available to every Facebook company profile

  1. Call-to-Action

Give interested profile visitors a next step beyond Facebook, in the form of a button on your cover photo. The call-to-action button can be customized to make sense for your business, with text that ranges from “Sign Up” to “Shop Now” to “Donate.” Your website/landing page URL is linked to the button, and once it’s set up, you can then track the number of clicks your button receives within your Facebook profile.

*The “Donate” call-to-action is a feature that is gradually being rolled out to non-profit organizations is not available to every account.

  1. Email Signup

Many Email Service Providers provide the option to integrate an email subscribe opt-in on Facebook. This feature allows you to eliminate the extra steps of getting a user to leave Facebook, go to your website, and then subscribe to emails, by allowing your Facebook profile to capture these leads directly within the platform. After integrating the opt-in form, you can customize the tab that appears on your Facebook profile.