The average cost per click on a Facebook ad is $1.72, up from 23 cents just 6 years ago. And it's rapidly increasing, especially in industries that don't naturally have high social engagement.
So if you're not a fashion company or professional sports team, what should be your strategy to combat price increases, conversion rate decreasing, iOS14 injuring your ability to target, ad disapprovals that could shut you down, and more platform changes than you could ever keep up with?
What if you're in a "boring" industry and don't have Super Bowl budgets?
Let's talk about why the prices have been going up and then explain the techniques you need to use to not get priced out. When we understand how the system operates, we can feed it the right signals, so it will give us what we want.
The #1 factor causing your ad prices to go up is low RELEVANCE SCORE. And the top factor in relevance score is engagement rate. Much like Google's Quality Score, which is based on CTR, Facebook's Relevance Score is based on engagement. So it my ad gets twice as much engagement as your ad, all else equal, then I pay half as much.
The math of the Facebook ad auction is simple (bear with me, it's worth it, even if you haven't done math for a long time).
Relevance Score x Bid = Ad Rank.
Your ad rank determines your place in the auction, so you have to hit a certain ad rank to even have your ad shown. Thus, you can get traffic by increasing your Relevance Score or by increasing your bid. If you're not setting a manual bid, Facebook will set your bid for you, increasing it until you meet the threshold to show your ads in the auction.
So you can either pay your way there (which is brutal) or more elegantly, get higher engagement.
The highest engagement on Facebook is vertical video that is interesting and doesn't look like an ad. When you run ads that look like another user made them-- whether they are funny, entertaining, or interesting, you hold that user's attention. Facebook's default video optimization technique is to what's called a ThruPlay, which is a 15 second view.
The average ad performance on Facebook is less than a 1% click-through rate (one type of engagement), while the average video ad gets a 10% ThruPlay-- which is 10 times higher. If you use the right techniques for the "One Minute Video" formula, you can consistently get 25% ThruPlays.
In our webinar coming up, we'll walk you through the 4 components of the One Minute Video and show you detailed examples of how you can do this with your cell phone. You don't even have to be good on video or know how to dance. You could even film your customers-- we'll show you how.
Accompanying the One Minute Video formula is the $1 a Day Strategy on Facebook. It's how to test your ads most efficiently for only $1 a day. We'll cover how to structure your campaigns the right way, even if you've never made Facebook ads before.
Get ready for a high-energy, practical presentation by Dennis Yu and Tristan Parmley of ChiroRevenue.
Together, they have spent a billion dollars on Facebook ads and love helping see you unlock success with Facebook ads.