Do Facebook Ads Work for Small Businesses in 2024?
Do Facebook Ads Work for Small Businesses?
With almost 3 billion monthly users Facebook is a golden opportunity for small businesses to use as a marketing platform.
Small business owners often ask me if Facebook ads will work for their business, my answer is yes-but and the “but” is what I'm going to talk about with you in this article.
You can always skip ahead to 18 Advantages for Facebook Ads if you want, but it's my mission as a small business owner is to help small businesses increase their revenue and not waste their money, and if that sounds good, keep on reading so you can make informed decisions if you're exploring Facebook ads as a marketing strategy.
Facebook Ads Aren't A Magic Bullet
Just like anything you want to do successfully, It takes understanding how it works.
You need to implement what you know, and pay attention to your results, so you can keep making necessary changes to keep improving.
It's like when people join a gym on Jan 1 because they want to improve their health in the new year. They're so excited and while handing over their credit card ask “will this work for my health goals?”
And we all know if they plan, show up consistently, and commit to the process, the answer is yes. But, if after 1 week they stop going because they still can't fit in their skinny jeans, then the answer is no. You'll hear them saying “yea, I tried the gym but exercise just doesn't work for me”
So yes Facebook ads work for small businesses, but my goal is for you to understand why they work, and how to make sure you know what to expect, and some of the nuances before investing your money.
Understanding the Basics
If you're thinking of advertising on Facebook it's probably because you want to promote your products, services, or brand, and not to just spend your hard-earned money.
Ads are different from organic posts, which are the regular updates you share on your Facebook page for free, and If you don't already have a Facebook business page, I highly recommend you go create one ASAP.
The difference in using paid ads is its ability to push your content beyond your usual audience, and ensuring greater visibility, which will increase awareness and sales.
Facebook Ads Manager
To prepare your business to have successful campaigns on Facebook you'll need to have a Business account.
Inside the business account is ads manager, which is the interface and control center for ad creation, customization, and data collecting.
There are tools for robust targeting, budgeting, tracking the performance of your ads, to ensure you can optimize your strategies for the best results.
Now, ads manager can be intimidating until you get familiar with all of the different capabilities, so If you're not a person who enjoys learning new tech platforms, or just don't have the time, I suggest you hire a Facebook ad manager if it's in your budget.
To recap about Facebook ads manager- it's crucial before you spend money on ads you either learn how to do them or hire someone.
Preparation is Key
Before pouring your hard-earned money into ads, there's some pre-work involved. This involves understanding your target audience, having a clear goal, and a budget.
Facebook's ability to create custom audiences and lookalike audiences, is a great way to have your ads shown to potential customers.
However, it's always a good idea to test specific audiences as part of your advertising strategy, including testing cold audiences until you find one or more that performs well for your ad objective.
Detailed targeting is one of the best ways to stretch your Facebook ad budget, because the more relevant your ad is to the audience the less it will cost.
Your Offer
Part of being prepared is knowing that your offer is solid.
Facebook ads work for small businesses that have products or services that solve a problem for their target market.
If your product doesn't sell organically, ads won't fix that. What ads will do is get your offer to a larger audience than organic marketing.
But, keep in mind, all the website traffic in the world won't help, if your thing isn't a thing people want.
Facebook Advertising for Local Businesses
Facebook ads are a great option for local businesses because they can use the location targeting.
What sets this advantage apart from print and billboard ads, is the ability to track the data of how many people saw, clicked, or watched the ad.
The magic happens when all the data from engagement, clicks, and watch time is used to retarget by sending out new ads to all the people that clicked or watched your video, because these people are interested in your offer.
It doesn't mean that they will buy it, but for some reason it captured their attention, so the next ad will either keep their interest, or not which is all great data to study for until it becomes clear what's working and who it's working for.
Some different ideas for local business advertising campaigns can be
- are to offer a coupon or discount to get more traffic in their store,
- get their community involved with some engaging fun ads like contests
- or shouting out their customers, and build a loyal customer base.
This local restaurant below has 2 different types of ads: both going to their menu. One is a video commercial, the other a static image. The benefits of both these ads vs traditional mail marketing is everyone that clicks on it or watches the video, can go into their next campaign as a warm lead.
Facebook is the most widely used advertising platform by marketers
As shown in the image above, Social Media Examiners annual report for 2023 illustrates Facebook is the ad platform favored by the majority of digital marketers surveyed.
There are various reasons for this including the average cost of ads on facebook are lower than other social networks which is appealing to businesses that may have a small budget.
Small businesses can use Facebook ads to increase brand awareness, get new leads, grow their email list, get page engagment, communicate with their audience using messenger ads for a more personal experience, launch new products or programs, and increase sales.
The bottom line is- Facebook ads can be an extremely effective marketing strategy when done with preparation, strategy and testing.
Testing
The metrics you gather tell a story about your campaign, are you getting good results within your budget, or do you feel like you've been wasting your money?
You can look at specific key metrics and know if you need to make any changes. For example, if you have a click through rate over 2% but no conversions, that's a good indication to have a closer look at your landing page, because people are interested enough to click, but they're not taking any action once they end up on your page.
If you're a small business looking to try Facebook ad campaigns, but don't want to do it yourself, take this free quiz and see how ready your business is to outsource.
Frequently Asked Questions
What's the difference between Facebook Advertising and organic posts?
Organic posts are regular posts on your business page without paid promotion, while Facebook Advertising involves spending money to promote posts or create ads to reach a wider or more specific audience.
How can I ensure my ads reach the right people?
By using features like custom audiences and lookalike audiences in the Facebook Ads Manager, you can target specific groups or individuals that mirror your current customers.
Is it expensive to advertise on Facebook for a small business?
Facebook offers flexible budgeting, allowing businesses of all sizes to advertise. The key is to set a budget that aligns with your marketing goals and monitoring the ROI.
What is a Facebook Pixel and why is it important?
A Facebook Pixel is a code that you place on your website. It in tracking conversions from Facebook ads, optimizing ads, retargeting specific website visitors, and understanding user behavior.
How do I choose the right campaign objective for my business?
Determine what you want to achieve, whether it's brand awareness, lead generation, or website visits. Facebook Ads Manager offers specific objectives tailored to your goals.
Can social media marketing replace traditional marketing methods for small businesses?
Social media marketing, especially through platforms like Facebook, is powerful, but it should complement, not replace, traditional methods. A holistic approach combining both ensures wider reach and effectiveness.
Final Thoughts
Facebook advertising is a powerful tool for small businesses. With the right strategies, clear objectives, and an understanding of the platform's nuances, businesses can leverage Facebook to reach their ideal customers and increase their revenue.
By embracing the potential of Facebook advertising, small businesses can not only foster growth but also ensure they remain competitive in an increasingly digital world. Whether you're a novice or a seasoned marketer, the opportunity to tap into Facebook's vast user base is too significant to overlook.