How to know if Facebook advertising is right for you



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The truth is that running paid advertising on Facebook is not for everyone. Some brands are
better suited to influencers, SEO, email or content marketing.
To find out if Facebook advertising is right for you (and your business), we’ve answered the
three most common questions from marketers who are new to Facebook ads.

Q1: What types of products work on Facebook and Instagram

It’s important to know who your customer is — this will help create your customer avatar. One of
the main categories of this avatar is where your potential customers “hang out” online.
For example, Facebook usually skews towards an older demographic, while Instagram skews
younger. Understanding where to find your customers is crucial.
Run a campaign that has the same audience targeting and ads (creative and copy). Then see
which channel returns better results by looking at Cost Per Action (CPA), Return On Ad Spend
(ROAS), Clickthrough Rate (CTR), Cost Per Click (CPC).
When you understand where your customer is, you can adjust copy and creative per platform
(e.g. beauty products have anti-aging skincare lines that you can test on an older crowd like
Facebook as well as make-up for the younger crowd on Instagram)

Q2: When should you start paid advertising

Running ads can be used effectively at most stages of a company, but the outcomes will be

1. Startups and New Brands

For example, if you’re just getting started, you should be using paid ads to validate your
product. Don’t expect a good ROI on your ad spend, the goal of these campaigns is to gauge
whether people are interested in your product.

So you would want to test different aspects to find out what sticks and what doesn’t. Some
things you should test are:

  • Offer
  • Pricing
  • Product colors
  • Product functionality or use case
  • Customer type
  • The hook (What problem would this product solve? For example, toothpaste. “Do you
    want minty fresh breath?” vs. “Make your smile whiter!”)

2. Brands Looking to Scale

This is when you would want to start at $50/day and use this budget to actually scale your
company in a profitable way. The goal is to use paid ads to get your product in front of new
people and push them down your sales funnel.
What this means is you have a balance of prospecting (cold traffic) and retargeting (hot traffic).
You manage your account to balance this ratio of cold and hot traffic to optimize towards your

We recommend that you only attempt this once you have a good product (tested in the market),
understand your customer, have at least a few hundred site visitors a week and organically earn
over $4,000 a month.
Cash flow will be important. You don’t want to jump in too early and spend all your money on a
product that isn’t proven to sell or be in demand.

3. Established Brands Trying to Get a Market Share

The third stage occurs when a company has a different goal and the brand is looking for ad
recall, market share, and larger reach.
These are companies like Nike and Apple who are not looking for a ROAS, but a larger reach and
ad recall on their “brand” — not necessarily their products.
It can take consumers months to make a purchase and these larger brands want to be fresh on
their their minds whenever that happens.
Larger brands usually have too many overlapping channels to properly measure ROI per ad,
campaign or channel. Instead, they analyze higher level metrics.
No matter where you are in your business, there is a purpose and use for paid ads in your
marketing strategy.
Just make sure you understand what your goals are and set realistic expectations.

Q3: What Should Be My Minimum Ad Spend?

$50/day is a good place to start for brands looking to grow with paid ads. This gives you enough
money to cover remarketing (a “MUST” when you start running ads) and still leaves a little left
over for prospecting.
Your budget will also depend on whether you have any traffic to remarket or retarget.
If you’re just getting started, I highly suggest focusing your time and money on improving your
product, getting customer feedback, and making sure your funnel or website conversion rate is
A good way to start collecting feedback is to create a post-purchase survey and add it to your
email drip. This also helps you pinpoint those pain points in your copy.
We suggest 3% plus for products under $200. The more expensive and higher your profit
margin, the lower your conversion rate can be to turn a profit.

If you meet those requirements and have a proven product, plus a bunch of feedback from
people you don’t know (no, Mom’s opinion doesn’t count), THEN you can start spending money
on ads.
Remember that you still need to set these ads up correctly, NOT boost them from your mobile
app or newsfeed.
These campaigns are usually not very scalable, which is why we usually suggest waiting until
you have the budget to spend $50/day.
If you are looking to spend a small amount, there are 3 implementation options

  1. Create a $5/day campaign that you add all your blog posts to, then target all your
    remarketing audiences. This consists of website visitors and social engagements
    (Facebook & Instagram)
  2. Create a $5/day campaign targeting people who have added a product to their
    cart but didn’t check out.
  3. Create a $5/day campaign that has all your best blog posts, then target interests
    closely aligned with your target customer.

If you are wondering why we didn’t suggest look-alikes, it’s because you need to have an
audience of about 500 to 1000 people, minimum, to create an effective look-alike

Remember: Don’t Run Ads Before You Get This Right

Now, there’s no point trying to fill a leaky bucket (i.e. sending traffic to your website if it doesn’t