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5 reasons why your Facebook ads might not be converting

Advertising on social media is growing into a USD 100 billion business. Budgets for social media spend are increasing, and CMOs are expecting their teams to divert more time and resources to demonstrating that their efforts on social are making a business impact. Being able to link media activity to business benefit – the elusive ROI of social – has become the central task in marketing.

But for the most part, these efforts have been measured in isolation, without a clear understanding how their spend benchmarks against competitors – creating a very incomplete picture.

Audience targeting issues
Marketers have heard time and time again about the importance of understanding their audience. This research process begins from learning about their demographics, interests and behaviours, and it ends with knowing how to reach them on Facebook. An often-common mistake marketers make is defining their target too broadly. They try to include all of their audiences under one umbrella, instead of segmenting them into multiple ad sets.

If the ad is failing, you will never know which segment of the audience is at fault. What’s worse, if you do not segment by a location, Facebook could be pushing your ads for cheaper placement bids to regions other savvy marketers avoid. The platform is optimised to get the most delivery for your budget, consequently it could be placing your ads to a low-cost audience returning promising CPC rates, but likely you are advertising to an audience low in purchasing power. Multiple ad sets are the solution.

Failing to continuously test ads
While Facebook recommends that the more you test your ad, the better your ROI, most advertisers will invest too much time crafting the perfect advert and then wait for it to convert. A/B testing allows you to continuously improve your content and tailor it to your audience.

Start on the ads level, as this is very simple for building multiple ad tests. You can try using different images and copy, but you do not have to stop there. We already mentioned that on an ad set level, A/B audience testing is key; you can test different bidding options, scheduling times, and call-to-actions (CTA).

Losing at the bidding process
Facebook’s bidding process is fairly straightforward – bid short of your competition and you will lose the ad spot. This becomes increasingly more complex when measuring conversions, as you are expected to bid based on the value of your conversion. Leaving the bid for Facebook to decide saves time, but the manual bid should not be overlooked. It is simple to calculate and could significantly increase your conversions.

When it comes to calculating the bid, only you know the value of your conversion. Take a variety of factors into consideration. For instance, it is not only about the production and shipping costs, it’s also important to give value to less tangible returns such as customer loyalty. The bid is not where you should be saving costs.

Measuring the wrong insights
Insights like cost-per-click (CPC), although important if your targeting is set correctly, can be misleading. We suggest regularly checking your Facebook Ad Frequency and Relevance Score. The Relevance Score will tell you how well your audience is responding to your ad. A low score will increase your cost and will affect your future performance.

Ad Frequency is often overlooked. Yet it is crucial for measuring how many times your advert has been exposed to each Facebook user. If your frequency is scaling above 2 points, you should adjust your target audience. Eventually, regardless of audience size, frequency will increase, which serves as a reliable indicator for knowing when your ad has run its course.

The drop-off point on your website
Before we move away from measuring insights, we recommend paying attention to click-through-rates (CTR) when launching conversion based adverts. A healthy CTR, but low conversion rate indicates that there is an issue outside of Facebook. Check to see if your Facebook advertising is aligned with your external landing page. The page should reflect and expand on the promise of your advert. Not only should it be consistent in copy, but in its visual language as well. There is no reason why your landing pages should not be subject to A/B testing too.

The Takeaway
Facebook advertising can consume your money extremely fast. That’s precisely why every part of the ad creation process is essential and should be given special attention. After-all, each link can break the entire chain, and waste your budget as a result.

Charles Tidswell

Charles Tidswell is the Vice President of JAPAC at Socialbakers and is based in Singapore. For the majority of his professional career, Charles has been involved with early stage start-ups and companies entering the high growth stage across the South East Asia region.
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