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Start Your Business with Facebook Ads – How to Use Facebook Ads for Local Businesses
Do you own a local restaurant or perhaps a boutique? Wondering how you can promote your local area business through Facebook ads? In this article, you would find all you need to know about starting to advertising through Facebook.
Below is the checklist that will give you a list of factors to consider before starting:
- Getting the Foundational Elements in Place
- Calculate the LTV Using the Below-Mentioned Formula
- Creating your Target Audience
- Promoting your Business via an Engagement Campaign
- Delivering the Ad via Website Conversion Campaign
- Benefits of Marketing through Facebook Ads for Small Businesses
1. Getting the Foundational Elements in Place
Before you start to advertise, you need to have a few things set up for quick access:
- Setting Up the Facebook Tools: Considering you have already made a page for your business; the next step would be adding that account to Business Manager.
- Have an Estimate of the Lifetime Value of the Customers: Having an estimate of the LTV of your customers would aid in creating and promoting a budget-friendly offer.
2. Calculate the LTV Using the Below-Mentioned Formula:
Annual Customer Value = (Average Sale per Customer x Monthly Frequency) x 12 Months
LTV = (Annual Customer Value x 5 Years) x 2 Referrals
Once you derive the LTV, it would then come in handy to create a budget-appropriate offer that you can promote via an organic page post. For instance, you could offer your customers a chance to win a gift card of certain value.
For people who entered but didn’t win, you can provide an option of consolation prize which can be received via Messenger. Ask people to comment a keyword of your choice to avail the consolation discount. When you offer something to your customers, they provide you a way to get in touch with them. Once your offer has been accepted in exchange of an email address, you could send out messages or ads to persuade them to purchase from you. This easily makes up for the cost of giving something for free initially.
3. Creating your Target Audience
When it comes to digitally marketing your local area business, the biggest advantage is being able to target people who are interested in your services or products. Think about who your ideal customer might be? Where exactly are they based? Do they have a family? There are countless questions that you could ask to have a better understanding of your potential customer.
- Identifying your Customers: Different people would react differently to certain kinds of messages. For instance, in a restaurant, every customer is hungry but they might have come for different reasons. A business professional might have dropped by to grab a quick lunch while a mother might have stopped to feed her children. By understanding your customers better, you can address their unique needs which in turn can help in improving your ad performance. Check our Facebook audience Insights to know more about your customers.
- Create Custom Audience: To create your custom audience, you may already possess the assets required. Uploading your Email list to Facebook will help create your custom audience that you can easily target. Then use the existing members as a source to create a lookalike audience who are similar to the customers you have.
4. Promoting your Business via an Engagement Campaign
Your main aim with the engagement ad is to encourage people to engage with the post. Facebook’s algorithm would anyway optimize the ad so as to get more people to react to it. These ads are supposed to look pretty similar to posts that you boost. However, an engagement campaign would allow you to split test a variety of custom audiences you created and see what generates the best engagement.
Facebook allows ad accounts to target people based on their preferences. For instance, you could choose to target women between the age group of 25-55 based in a certain area, behaviours and interests. You could even choose the placement of your ad. If you are new, Facebook feeds would be the best place to advertise.
5. Delivering the Ad via Website Conversion Campaign
It’s imperative to have the Facebook pixel installed when you are running website conversion campaigns. Such campaigns are optimized for the people to actually click on your site so expect a higher cost. Once you have connected the pixel, the rest is similar to the engagement campaign. Also, it would be wise to target the same audience that were targeted in the engagement campaign. You get the option to target existing customers, friends of the customers or even people who haven’t liked your page.
6. Benefits of Marketing through Facebook Ads for Small Businesses
- Targeting: When it comes to marketing for a small business, reaching hundreds and thousands of people isn’t the main goal. There’s already a set of audience who are in need of particular services and products and you only require a way to get to them. With Facebook Ads, you can target potential customers based on their age, language, location and interests.
- Straight Forward Reporting: Facebook ads for small businesses, it is easier to ensure that your ad spend is being fully utilized. Facebook offer a variety of key performance indicator metrics that can aid in accessing the engagement rates of the campaign. This typically includes cost per click, reach, total spend and the Clickthrough rate.
- A Compelling and Creative Ad: In order to promote efficiently on Facebook, you need to put together a compelling product ad. With Facebook, you would get various options for the design aspect of your content including images, video, slideshows, image carousel and canvas. It is imperative to ensure that the ad you have created has bright colours, presents a clear CTA, catches the audience’s eye and portrays your value proposition.
When you are beginning to write your ad copy, think about what makes you unique and helps in standing out from the crowd. For instance, if you own a restaurant, your value proposition could be that you have the best burger in town. Once you are aware of your value proposition, make sure to alight all marketing message with that.
Additionally, make sure that your offer is actually effective enough for the viewer to follow up with the action that you desire. Add a call-to-action button so as to persuade people to take instant action. Once you have a better understanding of how much a customer is actually worth, you will be better at deciding what offers would actually compel your customer to take action. If you use it wisely, Facebook ad marketing can actually be highly beneficial for your business.
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- Facebook Ads
- Facebook Ads for Local Businesses
- Facebook Marketing
- Start Your Business with Facebook Ads
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