How I generated $88.95 from every $1 spent on Facebook Ads
(Originally posted 11 November 2019 on LinkedIn)
As the studio is running a series of special classes to close off its time at the current location before moving to the brand new space, I recently ran a Facebook ad campaign in that celebratory angle with the goal of driving class packages sales.
With the creatives coming in just a day before those classes would be released for booking, the campaign ran for less than 24 hours and I wasn’t too sure if it could rake in much sales, if any.
Thus I was pleasantly surprised when the results were as such:
Cost per result is calculated as the total amount spent divided by the number of results - purchases of class packages in this case. Purchase ROAS is calculated as the value of purchases divided by the amount spent, so you could think of this ad campaign as having generated a revenue of $88.95 from every $1 spent.
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All of the possible contributing factors outlined below are not groundbreaking, but are in fact commonly emphasized - I just thought that they do indeed apply to this very campaign!
1. Be clear on your goal of the ad
Are you looking to drive traffic, generate sales, or find leads? These are just some of the many results possible from running a Facebook ad. By being sure of what you want to achieve, and choosing the corresponding ad campaign goal, you’ll spend on achieving only results that matter to you.
In this case, I knew I wanted to drive sales from running this ad - thus choosing ‘Conversions’.
2. Be precise in the audience for your ads
By experience, I also knew that retargeting works better (in terms of lower cost per result, and higher purchase value) when it comes to driving conversions, and thus decided to retarget past website visitors. This decision stemmed from previous ad performances where past website visitors consistently outperformed other retargeting sources like past Instagram visitors.
Also from previous experiments, I knew that visitors to different pages of the website also had different ‘value’ in terms of the sizes of class packages they would purchase - but that’s a story for another day.
3. Be engaging in your creatives
Bearing this in mind, I repurposed the stories that were posted organically on Instagram to make them more concise for this audience as my window of opportunity to capture their attention is much shorter than that of the studio’s Instagram followers.
4. Be of value
Perhaps the most important point would be to question if the ad actually brings any value to the person who eventually sees it. I’ve learnt this point from my previous boss who highlighted that ads can help to amplify your message - but the message itself should be of value to the audience in the first place.
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These are some of the points which I think contributed to the results! What are your thoughts? Happy to get a discussion started. :)