Hey, I’ll be the first person to admit that I don’t know it all. And when it comes to Facebook Ads, I know just enough to get me in trouble. But good news: Today we’re picking the brain of Amber Krigbaum, our Digital Marketing Strategist and one half of our Facebook Ads Team. 

Ready to get answers to some of your most burning Facebook Ads questions? Let’s dig in…

Are Facebook Ads Worth It?

Short answer: Yes. Long answer: Yes, BUT…only if you take the time to learn the skill and actually invest in them. 

Facebook is something that you have to invest in and really learn about to be successful. Don’t just throw something up there, because it will not work. If you’re not going to put forth the effort and budget, Facebook Ads aren’t going to be worth it for you. 

Here’s why: Facebook relies on a learning algorithm, so it takes them time to really learn what your top customer looks like and how to get them to take a specific action. You have to give Facebook the time (and budget) to optimize and to learn what your end goal is. 

A lot of people want to try Facebook Ads for a week or a month and expect results overnight, but that won’t get you anywhere with Facebook. The goal of the algorithm is to get the highest quality people first, so that means they aren’t going to target everyone at the same time. 

That said, Facebook Ads are absolutely worth it if you’re willing to put forth the budget and effort. If you take the time to really learn how these ads work, monitor them, and put together creative that’s actually going to be effective for your business, you will see ROI. 

In fact, once you determine what your goal is and what you really want from it, Facebook makes it really easy to track everything and see the ROI. 

How Do I Advertise My Business Locally?

#1 Identify Your Target Market

The first step when advertising locally is to identify your target market and where they spend their time. 

  • What ages are they? 
  • What service areas do they live in/do you want to cover?
  • What habits do they have? (For instance: Where are they grocery shopping in your area? What news platforms do they listen to? What TV stations do they follow? Do they follow local schools? Do they shop at Home Depot?)

Most homeowners you want to reach will have Facebook or Instagram. And since they’re already spending time on there, you can reach them even before they’re looking for you.

With Google, customers have to already be searching for your business or services. Facebook puts the ad into their newsfeed, even if they might not be thinking about your services yet, so that trust is built.

#2 Define Your Goal

Next, you’ll want to determine your goal for your local advertising. 

Are you wanting to drive more traffic? Are you wanting your brand to be more recognized? Are you wanting people to call you?

The only platform that allows you to grow your brand recognition, expand your service areas, hyper-target specific service areas, and retarget customers in the decision making process is Facebook. 

#3 Choose A Campaign

If you’re using Facebook Ads, once you’ve identified your target audience and goal, you’ll need to decide what type of campaign you’re going to run. 

There are three campaign types that I recommend local businesses start out with:

  1. Video views campaign — It runs like a commercial, except on Facebook, so it’s a lot cheaper and a lot more targeted.
  2. Traffic campaign — The goal of this campaign is to get more people to visit your site. And since we’re using Facebook, you’ll get those people to your site at a cheaper cost than you would with Google. (Note: increased website traffic can have a positive effect on your ranking.)
  3. Reach campaign — If you have an audience of under 1 million, a reach campaign is the best one to run. As I said earlier, Facebook tries to get you the highest quality audience right off the bat. But reach campaigns don’t do that. They try to target everyone in that audience, so you’ll have the greatest reach, while also keeping that cost low for those smaller audiences.

#4 Determine A Budget

The last thing you want to do to get started advertising your business locally on Facebook is to decide on your budget. I always recommend at least $20 a day for at least three months to see results. If you’re only running one campaign, $10-$15 a day would also be sufficient. 

You can either schedule your ads to run continuously or you can schedule them to run just for periods of time. But to get started and to understand your audience and what Facebook can do for you, I would recommend that you run them continuously for those first three months. 

Special tip: After you launch your ads, let them run a week before making any changes. Facebook uses a learning algorithm and it needs that time to learn and see what they can do best. Don’t touch anything for a week or you’re never going to get out of the learning phase with Facebook, and you’ll just confuse Facebook, keeping your costs high. 

Can You Get Direct Leads From Facebook?

Absolutely! However, it’s important to note that when it comes to direct leads, Facebook is definitely for people further along in the buying process or people who have visited the site but didn’t take action. 

We do see calls and schedules with a lot of our clients, but it’s not like every person that sees a video is going to convert. So, it’s important to know how Facebook Ads fit into the larger marketing funnel.

How Much Do Facebook Ads Cost In 2019: A Cost Comparison Of Facebook Ads Vs. Google Ads, TV Ads & Newspaper Ads 

You’re probably wondering, in terms of cost-effectiveness, how does Facebook compare to other more traditional types of advertising? Let’s take a look…

Facebook Ads VS. Google Ads

A look at existing studies reveals that a ballpark cost for Facebook Ads for most industries is somewhere between $0.50 and two dollars per click. On average, small local businesses spend about $8,000 to $15,000 a year on Facebook Ads. These are businesses that like to stick to right around $20/day for advertising. Now, that’s great if you’re comparing it to Google. 

The average small business using Google Ads spends between $9,000-$10,000 per month. So that’s $100,000/year to get calls or traffic to their website. 

In other words, what you’d spend in a year for Facebook Ads is around the same as what you’d spend in a month for Google Ads, on average. But again, you have to remember that Facebook and Google are targeting different groups of people.

The four things we really use Facebook Ads for are:

  1. Conversions
  2. Website Traffic
  3. Brand Awareness
  4. Education

So that means we want people to watch videos, click, and visit your website. These people don’t have to be looking for your services, because we’re targeting them in Facebook, which is a platform people use for multiple purposes, not just when they need something. 

So you’re getting more traffic to your site at a cheaper price, and ads are hitting them earlier in the decision-making process. And since they’re already visiting their site, it’ll feel natural to go back to your site when they do need your services.

With Google, people are only going there with the intention of searching for your company name or a service that you offer. That means they are probably ready to book or make a decision on who they’re going to use. It’s only in this end-stage of the customer journey that they’re being shown Google Ads.

Bottom line: If you’re doing a direct cost comparison, Facebook Ads are cheaper than Google Ads, but they’re also different. They don’t produce the same hot leads, but they get people earlier on in the buying process, and without the customer actively seeking you or your services. 

That’s why Facebook Ads work so well in conjunction with Google Ads. They’re targeting different people at different stages.

Facebook Ads VS. TV Ads

For most of our clients, cost per impression with a well-developed Facebook campaign is around $0.15. That makes CPM (Cost Per 1,000 Impressions) unbelievably cheap…definitely under $5.00. Local commercials, on the other hand — which are a favorite way for local businesses to advertise — cost about $5 per 1,000 viewers for a 30-second commercial

The audience you reach with TV is completely dependent upon who is watching that TV station at that exact moment. You have no real control over who sees your ad, outside of zip codes and where the new station runs. So you have no way of knowing if your audience fits your target market — it may be made up of 10 year olds, apartment owners, millennials living with their parents, etc. 

With Facebook, everything is hyper-targeted. We know who we are targeting and we know that they’ll be shown that ad, no matter what time of day they visit Facebook or a partner site. And unlike the $5.00 minimum required by TV ads to reach a broad audience, the cost to reach a hyper-targeted audience through Facebook Ads tends to be more around $1.00 and under. 

Another benefit is that once an individual watches a video ad on Facebook, they can then be added to another retargeting audience and shown a special offer or an ad with testimonials and other trust builders. With a commercial/TV ad, once they watch it, that’s the end of engagement. There is nothing after that to keep them interested or to get them to engage with the brand.

Plus, with Facebook, you’re not limited to a 30-second commercial. You can run a six-second video, a 30-second video, a 10-minute video, or even an hour long video. It doesn’t matter how long it is, as long as people are engaging. 

Bottom line: With Facebook, you get cheaper, more targeted ads being shown to people you actually consider part of your target audience, and you can retarget and re-engage those individuals with other trust-building offers and incentives. 

Facebook Ads VS. Newspaper Ads

Okay, so Facebook Ads, on average, cost between $0.50 and $2.00 per click. How does that compare to newspaper ads?

Newspaper ads are actually pretty expensive! Depending on the paper, you may pay $12.00 for a black and white 4-inch ad and about $480 for a 10-inch ad. And again, your audience is limited only to people who buy the paper. Additionally, you can’t track if they’re actually looking at your ad in the newspaper — they may just pull out the Sports section. 

On Facebook, you can track how many people have seen your ad, how many people have clicked it, how many people visited the landing page — and more importantly, you can then retarget those people on Facebook. So you can use the money you’re saving by not buying a newspaper ad to show your Facebook ad to someone twice, rather than just once. 

Bottom Line: Facebook Ads are more affordable and more effective than newspaper ads, and it’s easier to track the ROI. 

So there you have your quick cost comparison breakdown. 

All that said, it’s stupid to think only about costs — you must also always consider ROI (Return On Investment). When deciding where to advertise and where to continue advertising, ask yourself:

  • Can I track the impact this has had on my business?
  • Is this making me money?
  • What effect is this having overall? 

Are Facebook Ads Effective For Small Businesses?

Absolutely. Here are the three main things Facebook Ads can do for your small business:

  • Build Brand Awareness — Facebook Ads can increase brand recognition and awareness on platforms where users are already spending their time. According to Pew Research, 68% of Americans use Facebook. That’s a lot of potential customers you could be reaching for your small business!
  • Increase Trust — Unlike Google Ads, which potential customers only see when searching for your business or your services in Google, Facebook Ads can hit people earlier in the buying process. Before your potential client has a plumbing problem or a chimney problem, they may see (through Facebook Ads) your company’s name and customer testimonials multiple times. So when they do have a problem and they’re ready to head to Google to make a search and make the call, the company name, services, and reputation are already ingrained in their brain, which results in more trust and an increased likelihood you’ll get the job.
  • Increase Website Traffic — Facebook Ads also drive more traffic to your website. While we can’t definitively say that more traffic = higher rankings, many of our Facebook Ads clients have seen an increase in website traffic and an overall boost in rankings. Causation? Maybe, maybe not. But when you have an increase in the number of people visiting your website (because of your Facebook Ads or for any other reason), Google does see that as a good indicator that you’re a relevant site that people value. And who do they want at the top of their search results? You guessed it: Relevant sites that people will find valuable!

Want some real world examples of how Facebook Ads help small businesses? Here are three quickies…

Chimney Industry

We have a chimney client who was using Google Ads, but felt they were still not reaching everyone in their potential audience. We started running Facebook Ads in conjunction with their Google Ads to see if we could help. 

We did a brand awareness campaign targeting people in their service area that hadn’t previously scheduled with them and a retargeting campaign targeting customers who had visited their site but had not taken a meaningful action. 

The result? They saw a 10% increase in profits for June-September 2018 vs. June-September 2017. 

Wildlife Removal Industry

Another client, this one a wildlife removal company, was ranking at the top of Google. But again, they knew they were only reaching the people already looking for them. They decided to give Facebook Ads a try, something none of their competitors were doing.

The result? Not only did they see a 30% increase in website traffic for June-September 2018 vs. June-September 2017, but they also saw an increase in overall brand awareness and engagement.

Masonry/Chimney Industry

Okay, one more. A masonry and chimney client was having trouble reaching new customers using Google alone. They also wanted to increase the value of their current customers by getting them to purchase more services and products. So, they decided to give Facebook Ads a try.

They used Facebook Ads to educate new potential customers in their service area,  retarget current customers, and introduce new/higher value services. 

The result of their efforts? They were able to increase the minutes of branded and educational videos watched by 6700% in March 2019-October 2019 compared to the same months in previous years.

Quick note: If you increase your budget beyond the $20/day mark and increase the effort you put forth, you could see even better results. It all depends on who you’re working with and how your targeting is going. 

What Should You Do If You Decide You Want To Give Facebook Ads A Try?

Curious about Facebook Ads and think you might want to give them a try? If you want to give it a go and see the results that I’m talking about, then here’s what you need to do:

  1. Commit to at least a three month trial period. Facebook needs time to learn what works, and so do you! 
  2. Create a goal, whether that is to drive more traffic to your site, to get more calls, to increase your brand presence, to expand into a new service area, whatever it may be. Put that goal on paper and see which metrics you would need to track to see if it’s successful. 
  3. Determine what type of campaign would best help you reach those goals. Facebook has over eight campaign types and each one of them works a little bit differently. So you need to be willing to test a few things in the beginning. 
  4. Determine what budget you have to put into these campaigns. If you don’t have at least $20 a day to put into these for at least three months, I would not try it. Stick to boosting your posts on Facebook instead. 
  5. Get creative with your ad creative and copy. If you have good photos or videos for your company, you can reuse those. But if you don’t, make sure you take some time to get some good photos of your technicians, your team, whatever you want to highlight in your ads. 
  6. Be willing to monitor Facebook. While Google and some other options out there kind of allow you to just set it, put some money behind it, and forget it, Facebook is not like that. Facebook is always changing, the results are always changing, so you need to be checking in at least once a week if you’re going to be running Facebook Ads.

Phew. Thanks Amber!

Ready to see what Facebook Ads can do for your business? Reach out to Amber at amber@sparkmarketer.com. She and Brena live and breathe this stuff!