Facebook Ads: How To Make Money
If you are a small business owner, you may have heard about Facebook Ads and wondered how to make money through them. Even if you are simply a casual Facebook user you have likely also seen advertising come up on your computer screen. Did you know that there are around 2 billion active Facebook users globally?
Quite simply, there is no other social media site with a wider pool of potential customers to draw from. However, even if you are convinced that Facebook ads are the way to go, you may still be confused as to how to make money off of Facebook.
How Do Facebook Ads Work?
If do you have a Facebook account yourself, then you have seen how selective the advertising can be. For instance, if you are a fishing hobbyist, then you may have gotten ads for fishing equipment, fishing spots, boats, and so forth. Now, imagine that your customers are on the receiving end of these ads. You can target customers that have already purchased goods or services from your business and increase brand loyalty and engagement, or you can target an entirely new audience that can turn into future customers.
Facebook works by utilizing targeted demographics, but these ads also go beyond age, gender, housing location, and can get as specific as drawing from the audience’s particular interests, hobbies, spending habits, etc.
How To Make Money with Facebook Ads
There is often some apprehension when it comes to Facebook Ads, because many users are not aware of the exact Return on Investment. The Return on Investment refers to the overall profit you will make based on the amount you have put into the marketing, in this case the exact dollar amount you have spent on the Facebook ad.
The way to make money with Facebook ads is to utilize all the tools at your disposal, such as knowing your customer’s target demographic, and what interests might be aligned to what you are selling. Beyond this, it is imperative to quantify your return on investment.
Quantifying Your Return on Investment
For this, you should be aware of what each website visit is worth. Are you selling products for $25 or $2,500, or both? This is relevant, because if you have a conversation rate of 1%, and a 1,000 people visit your site, then you could expect 10 people to purchase something. Even with that $25 product, $240 (at 10 people) is still a reasonable profit.
Thus, you should work to measure Facebook Ad Campaigns in the same way you might measure a physical campaign or sale. Determining the amount of visitors, the conversion rate for each one, and the sales prices, can give you a better understanding of your Return on Investment for Facebook ads.
To learn more, watch the video below: