The easiest guide to Facebook ads in 2021: Step-by-step playbook for beginners

If you’re looking to leverage Facebook ads for your business, here’s a guide that’ll show you everything you need to master Facebook ads. 

So if you want to:

- Reach out to a wider audience who are interested in your business  
- Use Facebook as a sales funnel for your business
- Retarget audiences who have visited your e-shop or website but have not converted to a sale

then you need to read this step-by-step playbook that covers everything. Let’s jump right in!

Plan of action 

- Why advertise on Facebook? 
- How to set up your Facebook ads account? 
- Types of Facebook ads for every objective 
- How to create Facebook ads? 
- Best Facebook ads examples 
- Facebook ads budget strategy 
- How to scale Facebook ads? 
- Remarketing using Facebook ads
- Facebook ad tips for 2021

1. Why advertise on Facebook?

You already know that Facebook is one of the largest social media platforms with access to 2 billion active users but that isn’t really the answer to this question. 

5 benefits of Facebook advertising

- Robust Analytics 

Facebook ads give you robust analytics about your audience that you won’t find anywhere else. This means that your ads and marketing strategy does not need to be made on assumptions and you can take calculated steps by carefully studying the metrics.

- Micro Targeting

You can micro-target your audience based on their age, interests, behaviours, connections, locations and demographics. Unlike other marketing channels,Facebook allows you to combine and layer these filters to ensure you’re only targeting users who are most likely to convert.

- Remarket to interested audiences

On Facebook, you can remarket to audiences who have interacted with you but have not yet converted to a buying customer. With tools like dynamic ads and Facebook Pixel, you can pick up where you left off with each individual based on their interaction with your business. 

- Find new audiences

Once you find an audience that is interacting with you and is converting on your Facebook ads, you can find new leads who have similar behaviors and interests by using ‘lookalike audiences’ on Facebook.

- Scalable ad efforts 

Facebook ads are scalable which means you can put in more money on ads that are working for you, you can create duplicate ads to target another audience segment, and you can also create funnel-based ads.

2. How to set up your Facebook ads account?

You need a Facebook ads account to manage and monitor your ads and their performance. You have to follow simple steps after you log in to Facebook’s Business Manager.

Watch this video for a guided step-by-step tutorial on setting up your Facebook ads account.

Now that you have set up your Facebook ads account, let’s look at the different types of Facebook ads that are available to fulfill your business’s objectives. 

3. Types of Facebook ads for every objective

It’s important to understand your marketing objective and match that with Facebook ad types to get the desired results. Choosing the right Facebook ad type will give you the data you need as well as will help you convert your audience to a paying customer.

Before we deep dive into Facebook ad types, let’s look at the 3 broad objectives Facebook ads can solve for your business.

Awareness

If you want your audience to know more about your business and how you can add value to their lives, your marketing objective is to increase brand awareness. This is a top-of-funnel ad where you are reaching out to everyone interested in your business category.

For example, if you are launching your earth-friendly cosmetics business, using the awareness objective you can create ad campaigns that can showcase your products and their unique features – like 100% vegan, earth-friendly products with zero-waste packaging.

 

 

Consideration

If you want your aware audience to take the next step and interact with your business by seeking out more information and engaging with you on your website, app, or in your messenger - your marketing objective is to encourage your audience to consider investing their time with your business. This is a middle-of-the-funnel ad where you are narrowing your target audience to people who will interact and engage with you.

For example, if you want your audience to know more about your earth-friendly cosmetics – how they’re made, the brand story, what range of products you offer, etc., you can create ad campaigns to drive your target audience to your website and encourage them to learn more.

 

 

Conversion

With an interested audience that has engaged with your business and shown an interest in the value that you provide, your next marketing objective should encourage them to buy or use your product. This is the bottom of the funnel ad where your campaign is aimed at conversion.

For example, showcasing your best products and giving away a discount coupon or first-time shopping offer will encourage your customers to buy your product.

 

Facebook ad types for every business objective

Photo

Looking for a simple and clean format to reach out to your audience? With an engaging image and interactive copy, your photo ad on Facebook is a simple way to increase awareness of who you are and what you do. 

 

 

When should you choose a photo ad?

- If you want to capture your audience’s attention with a creative copy
- If you want to hand out an offer to your audience
- If you want to redirect your audience to a blog, YouTube video, or an online store for more information.

How can you make the most out of your photo ads?

– Facebook photo ads mostly show on people’s news feeds. This is where they are engaging and interacting with posts from their family and friends. Use images of people using your product – making it seamlessly fit into their social fabric, unlike a shot of only the product (which may be easily scrolled over).

 

 

– Don’t clutter the image or even the post with a lot of copy. Remember, less is more and so keeping your copy simple and to the point can make a greater impact.

 

 

You don’t need a professional copywriter to help you write engaging copies for your Facebook ads - read our exhaustive guide on copywriting for social media.

– If you’re running multiple ads in the same campaign, make sure your visuals tie well together so people can recognise it to be from your business. This increases brand awareness and recall value.
– Use high-resolution images. It is 2021 and no one wants to see pixelated or grainy images (unless that is part of your creative narrative).

Facebook Video Ads

Use Facebook video ads to get your audience to engage and interact with your business. More people are watching and engaging with videos on Facebook every day. It's one of the biggest reasons why marketers today are making room for video spends in their budget.

 

 

Your Facebook video ad can be placed:

- In-stream – these are ads that play on videos people are watching

 

 

- On feed – these ads will be seen by your audience when they’re scrolling through their homepage, and

 

 

- Stories – these ads will show up when your audience is watching Stories from their friends and family on Facebook.

 

 

When should you choose a video ad?

- If you want to give the user a little more information about your business and what you do. Check out Invideo’s Facebook video ad where we use quirky footage to show our audience what we do.

- If you want to show your user how your product can add value to their life. In the example below, Decathlon shows their latest products and what makes it a great buy for their customers.

- If you want to share user-generated content and testimonials to build social proof. Here’s an example by Fenty Beauty where they have not only shared testimonials of their customers but also a before and after look using their Pro Filter Foundation.

How you can make the most out of your video ads?

– Keep your video ads under 45 seconds. If you post a long video, they are most likely going to skip past it, however, they will hit play on a quick video ad.

– Get to the point in the first 15-30 seconds. Your video ad should focus on your marketing objective and give enough reason to your audience to follow through with the call-to-action.

Use this template to create your video ad

– Just like your photos, your videos should be visually appealing. If you can’t shoot in high resolution and edit it well – your ad may not get your audience’s attention.

Use this template to create your video ad

– Use Facebook stories to give your audience a more inclusive and authentic experience. Stories on Facebook have become a way of connecting people with the community and it allows them to interact with your brand a lot more than the news feed. They are also quick and seamless and your audience is more likely to swipe up and browse through your website.

Pro-tip:
While a lot of people think creating video ads are costly and time-consuming – we have a solution that can help you create scroll-stopping video ads in less than 15 minutes with InVideo.

You’ll be able to choose from 4000+ templates where you can find Facebook ad templates like Facebook ads for restaurants, real estate Facebook ads, Black Friday Facebook ads, B2B Facebook ads, and more. You also will have at your disposal an inbuilt library of 8 million+ premium stock photos, and videos from Shutterstock and iStock.

If you want to learn the #1 secret to creating Facebook ads that people want to watch in 2021, check out this tutorial:

Messenger

Isn’t having conversations with your audience one of the best ways to make a conversion? Facebook ads on Messenger lets you do just that.

 

 

When should you choose Messenger ads?

- If you want to directly have conversations with your audience and customers
- If you want to give individual attention to each customer – helping them resolve an issue or giving them more details about a product, to make conversion easier.

How can you make the most out of your messenger ads?

– Create a brand tone that your users can associate with your business. Is your brand funny, witty, caring, or professional? Identifying a tone and staying true to it will help your audience connect with your brand. Here’s an example by Lego where they have used their own bot as their communicator and have kept the tone conversational and friendly. 

 

 

–  Use the data and insights from your messenger ads and conversations to improve and optimize your ads instantly.

– Retarget audiences who have engaged with you on Messenger, reminding them to make a purchase and you can also engage with customers by giving them offers to make new purchases.

Watch this step-by-step tutorial to create Facebook Messenger Ads:

 

Carousel

Can’t say everything with just one image or video? Facebook carousel ads let you showcase up to 10 images and videos with their individual links in the same ad.

 

 

When should you choose a Facebook carousel ad?

- If you want to showcase multiple products and redirect the customer to specific landing pages
- If you want to highlight the features of a single product to explain a process of how your business or product works

How can you make the most of your Facebook carousel ads?

– Tell a compelling story that will actively engage your audience and keep them swiping for more. In this interesting carousel ad, Target has used visual storytelling to capture their audience's attention and get them swiping as they showcase different products of their latest collection.

 

 

– Showcase your bestselling and most relevant products in your carousel ad. In the example below, Kinona showcases their best-selling products in a holiday gift guide - while giving their audience the option to click and directly buy from them.

 

 

– If you’re telling the story of one product only, use different images and angles to keep it interesting

 

 

– You can give your audience more product options and offers on each swipe to increase conversions

Check out this step-by-step video tutorial to create your own Facebook carousel ad.

Slideshow

Want to make a video-like impact but don’t have the budget for your ad spends? Use Slideshows to engage your audience using motion, text, and sound.

 

 

When should you choose a slideshow ad?

– If your budget does not allow for a video ad, use Slideshows instead. They are great to keep your audience engaged and are affordable as compared to most video ads.

– If you already have images or creatives that can tell a compelling story use a slideshow ad.

– If your target audiences may not be in locations with high-speed internet connections, choose Slideshows instead of videos since they load on every connection speed.

How can you make the most of your slideshow ad?

– Use well-shot and high-resolution images for your Slideshow ad

– If you are a service-oriented business, use Slideshow ads to take your audience through your process. Check out this example by Stash where they take you through their app and show you how to use it. 

 

 

Watch this step-by-step video tutorial that shows you how to create a slideshow ad on Facebook.

Collections

If you have got a catalog of products, why not showcase them for your customer to see, right here on Facebook? The Collections ad format lets you display your best products, giving your audience a chance to see what you have to offer – and then make a purchase.

When should you choose a Collections ad?

- If your business, like a retail brand, has many products to offer, you can allow your customers to finish their buying journey from discovery to checkout on Facebook itself
- If you want to show your audience a video and give them the opportunity to browse through the products displayed in it

How can you make the most of your collections ad?

Display your best-selling products that will surely get your audience’s attention
– Lead your audience directly to the products they can see in the video to improve their buying experience
– Showcasing a collection of products that go together - like clothes, accessories, shoes, or a single product with its variants - like your best-selling shirt in all the 5 colours it is available in.

Watch this video tutorial to know more about how to create a collections ad for Facebook.

Playables

Want more people to download your app? What if you could give them a try-before-you-buy experience to help with conversions? Playable ads let people experience your app on Facebook, giving them enough reason to install it if they liked your app.

 

 

When should you choose a playable ad?

Playable ads work best for app downloads because it offers the audience an opportunity to experience their product.

You can also use playable ads to get your audience’s attention to your product like Oreo did when they launched chocolate covered Oreos.

Oreo created a playable ad where their audience could shoot chocolate canons on Oreo cookies to make them more chocolatey - which helped them create awareness about their newly launched product. 

 

How can you make the most of your playable ads?

Make an interesting lead-in video that will prompt people to play and experience the app in your ad.

 

Check out this step-by-step guide on how to create a playable ad for Facebook.

4. How to create Facebook ads?

To create your first Facebook ad, click on the Create button in the left corner or in the center of the page. This will redirect you to the campaign selection page.

 


This is where you will be able to choose what your marketing objective is for your Facebook Ad. It is absolutely important that you make the right choice and so before you create a Facebook Ad, think about what you want to get out of it.

You can choose from options like – brand awareness, reach, engagement, lead generation, traffic, app installs, conversions, catalogue sales, and more.

If you want to create a Facebook ad for conversions, catalogue sales, or store traffic, then you will need to have Facebook Pixel installed on your website or your client’s website.

Facebook Pixel is a small code that when installed on the header of your website will let you track what your audience is doing on your website. What product are they clicking on? Are they reading your blog? What are they adding to their cart and buying? This code tracks your customer’s purchasing behavior and with that data, it lets you optimize your ad specifically for purchasing.

We’ve written a detailed guide on Facebook Pixel and how you can set it up for your business.

To make it easier, we’re going to show you how to make a Facebook ad by using the Roborock S5 Robotic Vacuum Hoover as an example.

 

Campaign

Step 1: Choose your marketing objective

The first thing you need to do is to choose your marketing objective. We have chosen our marketing objective as traffic.

 

 

Step 2: Give your campaign a name.

Make sure to give your campaign a name you will remember – especially if you plan to run a lot of ads and campaigns for your business or clients.

 

 

You should name your campaign in a way that gives you details about the ad when you search for it. It could be written as <name of the product> - <type of audience> - <type of engagement>.

For example, in this case, the name of the campaign could be ‘Roborock S5 – Cold – Traffic.

Step 3: A/B testing

The next option will ask you if you want to split test this campaign with another one. This is a great option to choose if you have two campaigns running and you want to know which has worked best for your audiences.

 

 

Step 4: Choose a budget for your ad

You will have the option to make it a daily or lifetime budget. If this is your first ad, a daily budget of $5 is a safe place to start (we will dig deeper into budgeting at later stages).

 

 

If everything looks good, click Set up ad account.

Step 5: Select your country, currency and time zone

After you have added in these details, you are done with setting up your campaign for your Facebook ad.

You will then be redirected to the Ad Set page. This is where you choose who your Facebook ad is going to target.

Ad Set

Step 1: Name your ad set

Adding a name to your ad set is super important especially if you plan to test it or if you plan on using it to create lookalike audiences.

 

 

Make sure you name your ad set in a format that gives you as many details about the audience - especially when you are searching for it. You can write it as <name of the product> - <type of engagement> - <target audience>.

For example, in this case, the name of the campaign could be ‘Roborock S5 – Traffic – Homeowners.

Step 2: Choose where you want to redirect your audience

You can then select where you want to redirect the traffic to. You can send your audience to your website, to Whatsapp, or messenger and if you have an app, you can get them to install the app.

 

 

You can also choose to add dynamic creatives or offers to your Facebook ads. A dynamic creative gives you the option to change the creative when someone sees your ad again. You can put in an offer in the ad that can directly apply when the customer makes a purchase.

Step 3: Select your target audience

The next crucial thing in an ad set is the audience. This is where you select your target audience’s demographics like location, age, and gender.

 

 

In location, you can further be concise about who you want to target – people who are living in the location, travelling in the location, or were recently in the location. You can also choose everyone in the location, but it is better to be very specific about your target audience.

For the ad example, since we are looking to target homeowners, we will choose the option – people living in the location.

When choosing the age demographic, reflect on the needs of your audience. For example, an 18-year-old mostly does not own the house and will not be making purchase decisions even if he liked the vacuum cleaner. Instead, we would choose our age demographic to be between 23-65 years of age.

Depending on your business, you can also choose the gender you want to advertise to. For example, we have chosen to advertise to all genders.

Step 4: Use Detailed Targeting to make your ad set more specific

Detailed Targeting uses keywords to filter audiences based on their characteristics and interests. Pay attention to the size, description, and interests of the keyword filters you choose for your ad set.

 

 

For example, we have added these keywords – homeowner, first-time buyer, and new house. This will help us target only those who fit in these categories.

Pro tip: One of the important things while using interest testing is that you only use a maximum of three interests. In fact, using one interest can give you the best data results because then you know what is working. The more interest you add, the more confusing it gets to pinpoint what worked for you.

Once you have fixed on your interest keyword, based on the size of your target audience, you can further narrow down your ad set. We have a target audience of 2,000,000 people which is a big ad set. Let’s make our target audience more focused.

To do this, simply click on ‘Exclude people or narrow audience’ below. This will open a new tab that will allow you to further filter people in your ad set.

What this tells Facebook is that from your target audience who matched with the first keyword, in our case ‘new house’ must also match with the second keyword, ‘first-time buyer’. This further narrows the audience down to 1,300,000 people.

Now, based on the data you have to input, your ad set is ready!

For our example of Roborock S5’s Facebook ad, our ad set is of 1,300,000 people who are in the age group of 22-65, they have shared with Facebook that they are new house owners and their data suggests that they are first time buyers.

 

 

For example, targeting people who are already looking for a vacuum cleaner is an obvious choice but it also increases the competition amongst other sellers. As a marketer, you need to think further and understand who needs your product. In our case, people with a new house need a vacuum cleaner, giving us a more focused audience pool to tap into than just people looking for vacuum cleaners.

Step 5: Choose your Facebook ads placement

The next thing to look at in ad sets is placements, which essentially allows you to choose where your audience will see your ad on Facebook. You can of course let Facebook decide for you by selecting the automatic placements button, or you can edit placements and choose what works best for you.

 

 

We would recommend editing your placements because that allows you to be very specific about how and where your target audience sees the ad. You can choose multiple options right from Facebook’s news feed, to stories on Instagram, messages in-streams, and much more.

The small preview section shows you how your ad looks, so you can also choose what placement works best for you depending on how and where the audience will see it.

 

 

Once you have selected your placement, your target audience pool would have also reduced to a more focused group. For us, it became 200,000 people from the last count of 1,300,000 people. You can also check your estimated daily reach and link clicks – this number is also based on the ad spend budget you have set.

Step 6: Optimize your Facebook ad

The last thing you need to do is to make sure your ad is optimised for what you’re looking for, in our case – link clicks. You can also choose from impressions, landing page views, and daily unique reach.

 

 

Setting up your Ad

With your ad set in place, let’s look at how to make the ad itself.

Step 1: Name your ad

Follow the same pattern as you did with your ad set and campaign – this will allow you to easily identify the ad in the future.

 

 

For the ad name, you can name it with <purpose of ad> – <target audience> – <type of ad>

For example, the ad name for our example would be ‘Vacuum purchases – Homeowners – Testimonial Video’

Also, make sure that the correct Facebook page is selected and if you want to also place the ad on Instagram, then make sure your Instagram account is connected.

Step 2: Choose your Facebook ad format

If you want to create a new ad, click on Create Ad or if you want to convert a previously published post into an ad, you should click on ‘Use existing post’.

 

 

You can then choose the format of your ad from options like Facebook carousel ads, single image or video, or a collection, which is best to display your catalogue of products. Remember that the formats for your Facebook Ads change depending on the marketing objective you chose for your campaign.

For our example, we chose our marketing objective as traffic and we will be choosing a single image or video ad format.

Step 3: Choose the media file you want to upload

Click on Add media to upload your image or video from your desktop.

 

 

Step 4: Write your Facebook ad copy

With your video uploaded, you need to spend some time writing the copy for your Facebook Ad. Remember, when your ad is on someone’s newsfeed, it has 2 seconds to grab their attention - so you want to write a catchy headline.

The primary text is what goes on the post description of your ad, so make sure it peaks your user’s curiosity. For example, for the Roborock S5 ad, the primary text is ‘Never vacuum your home again. Get a robot to do it for you. No seriously… it’s 2020.’

The headline is the next to get the most attention, so write a compelling copy that gets your users to click on the link. For example, ‘Join the robot vacuum revolution.’

The description comes directly below the headline and must be simple and crisp. Use the description to tell your audience about additional information like ‘free shipping worldwide’ or ‘limited period offer’. Your copy needs to compel your target audience to watch the ad and then click on the link and buy the product. 

 

 

You don’t need a professional copywriter to do this for you. Read this guide that will teach you everything you need to know about copywriting for social media.

Step 5: Choose where you want to direct your traffic
In the case of this example, we have chosen the website, so we will put in the URL of the landing page we want to send traffic to.

You can also change the text of the call-to-action button that appears in the bottom right corner of your Facebook ad.

 

 

If you have Facebook Pixel set up for your website, tick the box in conversion tracking so it can allow it to collect data.

That’s all, your ad is ready to be sent out to your target audience. Go ahead and click confirm. If you haven’t set up your payment details on your Business Manager, it will ask you to fill that in before your ad is published.

When your ad is published, you will be redirected to the ad manager page. This is where you will get all the data about your ad. You can also edit the campaign, ad set, or the ad itself if you feel something is not working for you or you want to try something different.

Don’t turn your Facebook ad off in less than 3 days. Give your ad at least 3 days before you make any edits or additions to test out something different. Facebook Ads take a minimum of 3 days to optimize and reach the maximum of your target audience. If after 3 days you don’t see any results, you can try something different. 

So now you know how to create an advertisement on Facebook. While it seems like a lot of work, it gets easier with practice and once you have created ad sets and campaigns that have worked for you, you will be able to publish multiple ads without going through the entire process.

Next, we’ve created a short swipe-file of Facebook ad examples for you to take inspiration from.

5. Facebook ads examples to inspire you

The New York Times

 

This concise and witty Facebook photo ad by The New York Times is a great example for a conversion ad.

The ad copy is kept to the point and immediately makes an offer that will capture their target audience’s attention. The ad is clearly aimed at someone who has interacted with their business before, by clicking on a link, sharing their organic content, etc. - thus making them offer to convert to a customer.

InVideo

Create your own Facebook video ad with InVideo

In this Facebook video ad, the copy and visuals work together to catch the audience’s attention. The ad also has a clear CTA that makes it even more simple for an interested audience to click and convert to a customer.

MeUndies

 

 

This collection ad by MeUndies is a great combination of a humorous headline with a fun video, making it a great Facebook ad. They have showcased the products that their audience can see in the video – giving them an opportunity to buy it right away from the listing below.

The New Yorker

A great example of a slideshow ad is this one by The New Yorker. It is minimalistic and focuses on making a clean and simple offer to its target audience.

The high resolution visuals combined with a sleek copy that gives their customer a straight-up offer also supports their overall brand tone.

AirBnB

 

No one uses a carousel ad better than Airbnb to show their target audience the many options they have for their next trip. They use Facebook Pixel to retarget interested audiences by showing them a carousel of multiple stay and experience options in locations they have shown interest in, and can be booked with a simple click.

You can also check out this carousel ad by Cadbury Icecreamland which was created for an audience that is familiar with their top-selling products.

 

 

When Absolut wanted to get their audience to try their latest range of cocktails, they used Facebook Messenger. When a customer clicked on their ad, they showcased their latest cocktails and then offered their audience a promo code to have it served at their nearest local bar.

It doesn’t end here - once their audience had used their promo code at the bar, they would get a notification from Lyft offering them a ride home. The campaign was so successful that it exceeded Absolut’s expectations.

Candy Crush

 

This playable ad by Candy Crush not only shows their potential customer what the app looks like but also how interesting and interactive the game is - which may lead them to download the application.

Check out this video where we share the #1 hack to create successful video ads that will convert to a sale - with free templates you can start using right away.

Now that you know how to create a Facebook ad, let's talk about your Facebook ads budget strategy.

6. Facebook ads budget strategy

Now that you know how to make Facebook ads and what facebook ad types can work best for your business - you need to have a budget strategy to ensure you’re getting the maximum return on ad spends.

Having a strategy and control over your ad spends ensures that you don’t drain money on an ad that is not going to work. So before we discuss how much Facebook ads cost, let’s understand how Facebook decides whether and how much to show your ads.

Facebook Ads work very differently because they are not only trying to create value for advertisers by giving them access to their target audiences and helping them convert but they also want to provide a positive and relevant experience for its users.

 

 

So, this means that the ads with the biggest budget don’t always win. Facebook groups ads together that are competing for the same ad space and auctions the spot. Billions of these auctions take place every day and the winner of the auction gets their ad shown to the users.

7 factors that determine the cost of Facebook ads:

Your bid

When you create a Facebook ad, you’re participating in a global auction where you are competing with other advertisers to make sure your ad reaches its target audience.

While the auction does not depend solely on the highest bid, Facebook wants to know how interested you are in showing your ad. The higher your bid, the more likely your ad will be shown. You can either allow Facebook to set your bid or you can do it manually.

 

 

Why choose Facebook’s automatic bidding?

- Through its algorithm, Facebook will find the lowest cost for your objective and bid that
- Use Facebook’s intelligence to maximise your budget and get the best possible outcome from it
- If you’re new to Facebook ads and you’re trying to find your benchmark for bids or you have a limited budget, automatic bidding is your safest bet to get maximum reach and impressions.

Why choose manual bidding?

- Choose and control the bid against the objective you are aiming for
- Tell Facebook how much a conversion is valued for your objective and what will your maximum bid be
- If you have been using Facebook ads and know your competitors well, manual bidding lets you be more competitive and makes your campaign more cost-efficient

Ad quality and relevance

One of the key things Facebook looks for in an ad is how relevant and useful it is to its users (your target audience). Is your target audience even interested in your business?

How does Facebook judge the quality and relevance of your ad?

- Facebook takes into account both the negative and the positive feedback from your audience.
- They take into account the number of clicks, video views, app installs, etc.
- They also keep a count of the number of people who clicked ‘I don’t want to see this’ on your ad.

If your ad relevance diagnostics are high, Facebook will show more of your ads as compared to an ad with a low ad relevance diagnostics. Keep a check on the relevance Score metric to know how well your ads are performing.

You can find this data in the ad manager where you can customise the column to show you your ad relevance score. It is a default column in the Performance column preset.

 

 

We have also made a list of the top 6 Facebook metrics businesses must keep a track of that will help them meet potential customers on Facebook.

Estimated CTA Rates

Facebook estimates click-through-action rates by showing your ad to people it knows are most likely to sign up for a product like yours.

For example, if you’re running an ad for cat food that is optimized for website conversion, it would show your ad to people in your target audience, who have made such a decision before to check if they will click on your ad.

If your estimated CTA rate is low, the cost of your Facebook ad is most likely going to be higher and you may have to increase your bid to win at the auction.

Your target audience

Your audience also plays a major role in determining the cost of your Facebook ad. Who your target audience is and how focused is your pool can greatly influence your ad spend on Facebook. This is because so many businesses are trying to tap into the same target audience.

For example, the cost of showing your ad to an audience in San Francisco is much higher than to show the same ad to someone in Indonesia.

Your target audience’s age, gender, location, and even their interests, behaviours, and connections also play a role in determining the cost of your ad.

Peak season

There are months in the year when the Facebook ad costs are higher as compared to regular months, such as the holiday season. This is because the number of advertisers targeting similar audiences increases - making the cost of advertising on Facebook higher.

If you are planning a campaign around these times, it is important to be very clear about your return on ad spends (ROAS) because of the increase in Facebook ad costs.

Placement of your ad

Where your ad is placed in Facebook’s ecosystem and audience network (which includes Instagram and Messenger) is key to how much your ad will cost.

 

 

While a lot of businesses believe that advertising on Facebook and its network platforms can be expensive, Facebook says otherwise.

According to Facebook, “Allowing us to show your ad on Instagram and the Audience Network as well as Facebook gives you more opportunities to reach the people you care about across devices. It can also reduce your average cost per result. At the ad level of ad creation, make sure you’ve opted into both additional placements and that your ad’s creative complies with the Instagram and Audience Network requirements.” 

Ad delivery optimization 

When you choose to optimize your ad delivery, Facebook shows your ad to people in your target audience who are most likely to respond to your ad. 

For example, if you clicked on ‘Link clicks’, Facebook will show the ad to people in your target audience who are likely to click on the link, based on their previous behaviour. 

This affects your Facebook ads cost because the actions taken on your ad impact your relevance score and estimated action rate. 

 

How to make sure your Facebook ads budget gets used effectively?

1- Calculate your return on ad spends

Return on ad spend is the amount of revenue you generated for every dollar you spent on Facebook advertising.

To calculate this, you need to take your total revenue (purchase value) and divide it by the total ad spends of your campaign.

 

 

So, if you sold 5 products, each costing $20 from your Facebook ad campaign in a week, your revenue is $100. To make those sales, you spent $25 on Facebook advertising.

That means your ROAS is:
100  ÷ 25 = 4x (where x is the multiple of 1).

Simply put, every time you spend a dollar on Facebook ads, you get $4 in revenue.

To make things even simpler, use an ad spends calculator to understand how much ROI you can get from your investment in Facebook ads. Check out HubSpot’s Ad Spend Calculator.

2- Tick the Campaign Budget Optimizer when you are creating an ad

 

 

Campaign budget optimization effectively uses your budget spending to get you the best results that align with your bid strategy.

 

 

Remember that the campaign budget optimization works at a campaign level and so your spends on every ad and ad set will not be equal. The CBO will analyse which ad is performing well and has more potential and will spend a larger chunk of your budget on it. While this reduces the cost per action, it results in a higher return on ad spends (ROAS).

 

7. How to scale Facebook ads?

Get more leads and sales from your best performing Facebook ads by scaling them. We’re going to discuss 4 techniques you can start using right away to max out on your best Facebook ads.

Increase the geographic area of your target audience

If you’ve started noticing a buying pattern from customers that come from a particular area or location - you must start by targeting your ads to that location and slowly increase the geographic area.

 

 

You can also identify new locations and areas using Facebook’s analytics, and focus your marketing strategies there to attract new customers. Keep your ad spends to a minimum when you’re testing out new locations and areas.

If you’re using Facebook Pixel, you will have a lot of data that can identify traits and behaviours of your ideal customers in a particular area. You can find an audience with similar traits and behaviours in another geographic area.

Increase the size of a Facebook Lookalike Audience

Lookalike audiences are built on a source audience that has positively responded to your Facebook ad, using data collected by Facebook Pixel.

You can slowly increase the size of your Facebook lookalike audience. As you increase the percentage of the lookalike audience, the audience will start becoming less similar to the selected source audience but this increases your potential to reach new audiences.

 

 

Remember to always start small - increase the size of your lookalike audience one percentage at a time, and if your ads are getting a positive response, scale it further.  

Segment your Facebook audience

It’s important to understand where your customer is in his buying journey to target him with appropriate ads.

You can use Facebook’s analytics to understand how your audience responded to your ad thus determining where they are in the sales funnel.

If you have posted a Facebook video ad, you can create a custom audience based on their engagement - segmenting them according to their response.

 

 

- People who watched 25% - 50% of your video are warm leads and should be retargeted with an ad that can give them more information about your product. 
- People who watched 75% or more of your video are hot leads and should be retargeted with an offer that can lead them to convert and make a purchase. 
- On the other hand, people who have watched less than 15 seconds of your video may either not be interested or don’t see the need of your product, making them cold leads,  and should be targeted with ads that focus on building that need for your product. 

The same can be done by using different metrics like people who visited your website but left something in their cart - use these metrics to group your audience and retarget them with appropriate ads. 

Increase your ad spends budget 

If you are beginning to see good returns on your ad spends from a Facebook ad it is a great idea to increase your budget. You don’t want to immediately pump in a big amount, instead keep adding small amounts to your budget every 3-5 days. 

You need to keep a close eye on your return on ad spends (ROAS) to make sure your ads are working and getting in sales. For example, if you are spending $50 dollars a day which is generating sales worth $300 dollars - your ROAS is 6 which means your ads are working. However, this number must keep growing as you increase your ad budget. 

If your ROAS stays stagnant or drops - this means your ad has reached it maximum potential and you need to target your audience with something new. 

8. Remarketing using Facebook ads

Facebook ads like any other sales funnel also works in stages. Not everyone will convert in the very first ad, in fact, that is a very rare occurrence. It could be anything really – a phone call that distracted them from making the purchase, the need to be double sure, or even a sudden change of plans. That doesn’t mean you’ve lost a good lead.

As a business, you want to interact with these audiences again, the ones that almost made it to checkout and even the ones that interacted and engaged with your ad.

Facebook retargeting ads let you reach an audience that already knows your business and allows you to personalize every ad based on what your customer is interested in. You can also build brand loyalty by advertising new products and offers to your old customers.

How can you retarget customers on Facebook?

Track Engagement

There are many ways to get data to help you identify people who have engaged with your business. For ads you run on Facebook and Instagram, Facebook will automatically update their data and identify people to retarget.

For businesses that have a website, Facebook has a tool called Pixel that collects data to optimize ads, build targeted audiences for future ads, and also remarketing to people who have already engaged with your website.

It is a small code that has to be installed on your website for it to capture data of people and their activities. For example, Facebook Pixel will help you target people who have come on your website, browsed through products but have left without making a purchase.

Watch this video for a step-by-step guide to set up Facebook Pixel.

If you’re a physical shop and you have a customer’s entry book or you have recorded your customer’s details when they made a purchase, that list can become a bank for people you want to retarget.

Follow this step-by-step guide to add your own list to Facebook to create a custom audience.

Creating Custom Audiences

With all of this data, you can create multiple custom audiences and plan different campaigns to retarget them. To do this you have to start specifying people you want to reach with your retargeting campaigns and then put them into buckets.

 

Once you have uploaded your list on Facebook Ad Manager and it is ready to use, you can start creating custom audiences.

Facebook Pixel will automatically be able to create custom audiences based on your specification. For example, your custom audiences can be divided between people who visited your home site, people who browse products, and people who left items in their cart. All these 3 custom audiences can be targeted based on where they are in their customer journey.

We have written a detailed guide where you can learn more about Facebook Pixel and how to install it for your website.

Choosing Your Ad Type For Remarketing

The best Facebook ad type for retargeting is dynamic ads. Dynamic ads will automatically show each person the relevant ad for them.

For example, if you are retargeting a customer who has left behind products in their cart, dynamic ads will allow you to show them that product and remind them to complete their purchase. They will also see similar products most relevant to their search.

You can also reach out to your retargeting audience on Messenger, which allows you to send highly targeted promotions to people who have shown interest and engaged with your business.

Pay Attention To What’s Working

Once your retargeting campaigns start, pay close attention to what is working. Understanding which ad did well for what ad set and the custom audience will help you target your audiences better.

You can also create lookalike audiences of the custom audience set that respond well. A lookalike audience is an algorithmically assembled group of audience that is very similar to your custom audience – with respect to their likes, common interests, purchasing habits, etc. Facebook identifies these patterns from their database and helps you create a lookalike audience so you can reach many more people who may be interested in what you’re selling.

9. Facebook ad tips for 2021

While we’ve covered everything you should do in this Facebook ads guide, here are some tried and tested hacks that will improve your chances of conversion.

Choose the right campaign objective

If you’re just starting out with Facebook ads it is best you choose a video views or traffic campaign because these will help you collect more data about your audience which can be used to target them with specific ads. They are also cost effective as compared to conversion ad campaigns and are the best bet to help you build awareness about your brand. You can then retarget audiences who have positively responded to this ad.

Avoid super tight audience pools

You want to have a fairly broad audience of at least 250,000. When you choose an extremely niche set of audience (20,000 or less), Facebook finds it very difficult to show your ads to the right people. Choosing a broad audience will let Facebook do the hard work of finding the right people for your business.

Always choose campaign budget optimisation

When you select this option you are basically allowing Facebook to optimise an ad in your campaign that is performing well by pumping more of your budget towards the right effort. This means you don’t need to constantly monitor your analytics - leaving the decision to Facebook to ensure you get your ad spends worth. 

 

 

Read about the top 6 Facebook analytics you need to keep a track of if you’re using Facebook ads to meet potential customers.

Use dynamic ad creatives

Dynamic ads let you have multiple different ad creatives and copies which will allow Facebook to mix and match them and show them to different audiences - letting you test out multiple creatives to see which one works best. You can add up to 10 different creatives and 5 copy options.

Create for mobile first

98% of all Facebook users are on the platform from their mobile device. This means they will be seeing your ad on their mobile and not a desktop. You must be cognizant of how your ads look on mobile devices. You can safely choose the 1:1 (square) aspect ratio which is perfect for mobile viewing.

Don’t Put All Your Money On Ads

When someone engages with your business, they are most likely going to check out your Facebook page and other social channels. Make sure that you are engaging them with organic posts that add value to them. Organically target customers with value-adding content that builds a long-term relationship with them, while supplementing it with paid ads.

Use Facebook Remarketing

Don’t let someone off the hook after they have engaged with your business. Make sure you follow up with them and retarget them on Facebook with exactly what they’re looking for. Leverage tools like Dynamic ads, Custom audiences, and Facebook Pixel to retarget audiences who have shown an interest in your business.

Lastly, don’t forget to watch this video where we have listed the 5 Facebook ad mistakes to avoid in 2021 in this video.


Wrapping up -

We’ve spilled everything there is to know about advertising on Facebook in this comprehensive Facebook guide. Right from understanding the fundamentals, creating your own ad, retargeting engaged audiences to your ad budget strategy – you’ve got it all. All that’s left to do for you is to start.

If you found this article helpful and you want to start leveraging Facebook for your business, you’ll definitely want to check out our guides on how to build a lead generating community on Facebook and how to Facebook live like a pro next.

FAQs

1. Are Facebook ads worth it 2020?

Unlike other marketing channels, the cost per click on Facebook is lower - making it a more profitable platform for businesses and marketers to advertise. Facebook makes available quality leads of interested customers for your business, however a lot of this depends on how you set your campaign and ads.

In this article, we show you how to create your first Facebook ad and ensure it converts. We have also shared a Facebook ads budget strategy so you’re always aware of how much every lead or sales costs your business. 

2. How much does a Facebook ad cost?

A Facebook ad can cost as low as $1 a day for an ad set charged for impressions (the number of times your post is displayed). Facebook ads that are charged for clicks, likes, video views and post engagements have a minimum spend of $5 a day. 

3. How do I start a Facebook ad?

Anyone can start advertising on Facebook once you have a Business Manager account on Facebook. However, creating a Facebook ad is a process that requires you to carefully select the right ad campaign, target audience, ad budget etc. That’s why we have put together this simple guide that will walk you through creating your first Facebook ad with a step-by-step tutorial that is fit for your business. 

4. Are Facebook Ads Free?

No, Facebook ads are not free and you have to pay for your ad spends. However, you can realistically make your Facebook ad cost almost nothing if y0u focus on optimising your return on ad spends (ROAS).

In this article, we discuss the relationship between your Facebook ad budget, return on ad spends (ROAS) and your business’s return on investment (ROI).

5. Does Facebook have video ads?

Facebook video ads can be seen in-stream (ads that play on videos people are watching), on feed (ads that are interspersed with the homepage feed), and on Stories (these ads will show up when you're watching Stories).

In this article , we show you how you can make Facebook video ads in less than 15-minutes without burning a hole in your pocket. 

6. What are video ads on Facebook?

Facebook video ads can be seen when you’re streaming a video on Facebook, browsing through the homepage feed or watching Stories. These are sponsored (paid for) posts that allow marketers to reach out to their target audience on Facebook.

In this article, we show you how you can use Facebook video ads to reach out to your target audience. 

7. How to delete Facebook ads?

Here’s a step-by-step guide to delete your Facebook ad:

Step 1: Go to Facebook Ads Manager
Step 2: Click on Campaign, Ad Set, or Ad, depending on what ad you want to delete.
Step 3: Click to tick the box next to the said Campaign, Ad Set, Ad you want to delete.
Step 4: Select ‘Delete’ from the action bar - your campaign, ad set or ad is now deleted.

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