There are very few channels for advertising that are as hot as Facebook Advertising currently.
Every new business is considering Facebook Advertising because of a few things
The amount of time users spend on Facebook
The incredible targeting options offered by Facebook.
The number of users
Have a look at the image below.
According to Napoleon Cat. Singapore has 4.1 Million Facebook users. Singapore’s population in 2016 was 5.07 Million. This means, practically the entire country is on Facebook.
Now what platform gives you access to the entire country where you can target their users based on their age, where they live, where they work, the phone they have and much more.
This kind of segmenting is not heard of in the advertising business.
The closest competition to Facebook’s Advertising is Google. The issue with Google is, it’s more focused on intent based advertising and when a user is searching for something specific your ads will come up. With Facebook, ads are shown based on the persona of the user and it’s great for building brand awareness.
But what are the costs?
There isn’t a one cost fits all type of thing. The amount you pay per click depends on the competition you have from other advertisers (Just like Google). It can range from $0.09 cents to about $2.
The issue with the cost per click is, this price can change considerably depending on the markets and the situation. The best way to find out the true cost is to actually experiment with campaigns.
How should you start?
Facebook has a lot of options for Advertising. And this can be intimidating, when you are starting off.
If you haven’t touched any aspect of Facebook advertising, I would suggest you to do what you would at a buffet. Sample the food and see what works for you.
I call this phase the experiment phase. Here you would test out
Different kinds of Facebook Ads (Boost Post, Click to website)
The different kinds of payment options (Cost per click, cost per impressions)
This experiment will help you figure out if Facebook advertising works for you, if at all. And if it does, by how much.
Company : Red White Mobile
What they do : They sell Mobile Phones in Singapore
Intention of the Campaign : Red White Mobile wanted to run a promotional campaign that showcased their pricing for Apple phones.
Cost Per Click
This is a great return for a campaign that is to build awareness and show the value of the company. The number of shares on that post directly improved organic reach, which was about 4,700 people. This is reach that the company did not pay for.
Company Name : Hot Tomato
What they do : Restaurant chain in Singapore
Intention of the Campaign : To promote a simple competition for a $60 voucher by using the ‘Boost Post’ feature.
Numbers for the Campaign
The objective of this campaign was engagement. The success of this campaign is defined by two numbers. The comments and Shares. 179 comments shows how engaged users are with this post and the number of Shares shows how many evangelists the company was able to create.
Company Name : ISOHomeCare
What they do : They are a portal for getting handymen for various services.
Intention of the Campaign : To promote the business and to drive high quality leads.
Numbers of the campaign
Cost Per Click
Having reached 20,000 people and a click through rate of 10% is a good conversion rate.
Perfecting your Facebook Posts
There is big advantage to making your Facebook posts perfect. In the Facebook advertising world, there is value to creating Ads that Facebook wants to show and this is measured by the Facebook Ad relevance score.
When your Facebook ad relevance score increases, then your cost per click reduces. Facebook wants to show your ads to people because they are most likely to be engaged with by users. Facebook doesn’t want to show bad or irrelevant ads to their users which diminishes the value of using the platform.
Read also: Best Practises for Facebook Marketing
Figuring out your Metrics
What is the number to track?
This is where things get interesting. There are various numbers to measure your Facebook campaigns with. What you measure depends on what you want.
Facebook Likes : Getting Facebook likes isn’t really an important metric anymore. Facebook expects you to pay to even reach people who have liked your page. This is what is popularly called a vanity metric. A number that adds no value to your business except your vanity.
Comments : Comments are a very underrated metric that shows the success of a campaign. Comments show that there’s engagement and people communicating with you. When you start communicating with users, it starts a conversation which can lead to future business or future purchases.
People Reached : People reached basically means the amount of people who have seen your posts. This is great for brand awareness. This is the internet version of a billboard that people see on the road. The more they see it, more likely there’s great brand recall and potential for future engagement.
Shares : This is a super power metric in my opinion. Shares takes engagement to the next level. People who see your ads and click on the share button become evangelists of your service. When they share, the ad is seen by their friends and their followers. Shares is the number one metric that can build virality. More shares, more the odds of going viral.
Will Facebook Advertising work for your Singapore business?
The common questions among various business owners is whether Facebook Advertising will work for their business.
The answer is, it depends.
Not all businesses can see direct benefit such as Revenue. In some cases, it’s more of brand building.
Whereas in other situations such as an e-commerce store that sells shoes and bags which is more of an impulsive purchase, businesses will see a direct benefit from Facebook advertising.
The Future of Facebook Advertising in a Nut Shell
When more Advertisers join, the more saturated and crowded it becomes. This demand pushes up the price and there might be a point where it does not make sense to advertise on Facebook because of the poor Return on Investment.
All marketing and advertising channels get saturated because of the potential. So riding the wave early will benefit your business tremendously without incurring huge costs.
Check out our Facebook Packages meant for Small businesses in Singapore.