As Patrick recently discussed, Facebook has changed their ad buying interface, making it simpler for businesses to choose what types of ads they want to purchase. With this new objectives-based format, Facebook hopes to provide its advertisers with a much easier way to determine what ads will work best for their goals. However, with high costs for Facebook ads, many small businesses have become disinclined to spend their advertising dollars on this system. Is the new interface enough to draw small businesses back into the Facebook advertising mix?
With this new ad format, users of both Ads Manager and Power Editor begin the ad buying process by selecting an objective. Next, Facebook decides for the advertiser what type of ad to use (users of Power Editor will be allowed to manually choose their ads if they want to). The advertiser gets to select where the ad will appear, such as within the News Feed or in the sidebar. In addition, advertisers can use more than one image per campaign, which means you get to run five separate ads at once and analyze the performance of each.
To determine the objectives for their new platform, Facebook reportedly discussed potential options with marketers from companies both large and small in a range of industries. The eight objectives they chose are Website Conversions, Clicks to Website, Page Likes, Page Post Engagement, Event Responses, App Engagement, App Installs, and In-Store Offer Claims.
Does This Help Small Businesses?
When it comes to small businesses and Facebook advertising, there are many conflicting opinions out there. Some report that Facebook ads are simply too expensive, and that the system in which businesses must pay both per like and to promote their posts is unfair. Others argue that Facebook ads are cost-effective, especially in comparison to the high bids for Google ads. Furthermore, because Facebook offers unique targeting capabilities, some argue that the cost for their ads is worth it.
The data shows that despite high costs, many small businesses are using Facebook ads and seeing success. A survey conducted by Hubspot showed that 74% of small businesses rely on Facebook for lead generation, and 70% of ad campaigns brought an ROI of three times or more. Tech Crunch notes that this new ad buying platform may eliminate the scare factor for small businesses – the system used to be very overwhelming in its options, but the new platform is much more user friendly.
Do you use Facebook ads? What are your thoughts on the new system as well as its pricing?
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