Facebook Ads: what is it, benefits and statistics
Are you convinced that you need to start investing in Facebook Ads ? This article brings important and sufficient knowledge to guide your first steps with the tool.
About a quarter of the people who inhabit our planet today have an active Facebook profile. The social network run by Mark Zuckerberg reached the mark of 2 billion users, with more than 100 million profiles created in Brazil.
If we consider that there are about 200 million people on Brazilian soil it means an ocean of business opportunities for the companies that advertise on Facebook Ads.
It is important to emphasize that it is important that Facebook Ads ads are integrated with a digital marketing strategy that includes actions such as Google Ads , SEO , email marketing, etc.
But before starting or expanding ad campaigns for Facebook users, you need to understand the mechanisms and functionality of the tool.
What is Facebook Ads?
Facebook Ads is the social network ads platform that displays them according to each user's behavior, preferences and tastes. It is undoubtedly one of the most important digital marketing tools nowadays.
Through a "trail" left by Facebook's personal profiles it is possible to have access to segmentations and information and this brings more assertiveness to the campaigns.
Every day millions of people and companies also access Facebook and interact with each other.
What Facebook Athe ds does is to target the ads to those who enjoy a page; do a search; leave comments, follow certain company, among other advanced segmentations.
The Facebook Ads algorithm interprets this data and determines who shows interest in the advertised product or service.
In addition, Facebook Ads lets you advertise on Instagram, by the format that popularly became known as Instagram Ads .
Main ways to advertise on Facebook Ads
To define how your Facebook Ads campaign will be done, you need to know what types of ads will be most impacting to your target audience. Therefore, we list below the main models that the platform offers. Check out.
Ads to drive traffic and conversions
The simplest and least costly ads for the user are those that are exposed in the right column of the Facebook page, but they often have low clickthrough rates. They also serve for companies that seek to attract and convert users to your website, blog, etc. in the news feed or the sidebar of the pages.
Ads for sale or Lead Ads
In this format the user can choose to use the product catalog, use different titles, calls, images, videos and links, all in a single ad in the Facebook news feed and also Instagram.
Another way to advertise with a focus on selling is to track and map user preferences through the format that uses a pixel embedded in websites, blogs, or e-commerce platforms to manage the delivery of ads.
You can also create ads as forms so leads (the so-called Lead Ads ) are generated with few actions as well as display exclusively for smartphones.
Ads that generate authority
That ad that asks you to enjoy a page is the most popular model of Facebook Ads and also the most effective and useful to increase the number of likes on the Facebook page. But be careful when thinking only about quantity, because quality is always more important.
Another way to show authority with Facebook ads is to use the model based on positive impact images as well as videos that are increasingly accepted by users.
There are also pure text options, with no image or video, but less impactful in most strategies. Authority is also achieved through mobile app ads, offering the download directly on the post, for both smartphones and desktops.
Event ads or promotions
Famous facebook events can also become ads. Facebook Ads has developed this format that allows the diffusion according to the region where it will be realized and the distance of the user to the place of the event. Already the advertisements of products on sale or promotion cause the user to buy through the advertisement and withdraw in the store closer.
5 Benefits of Facebook Ads
1 - Democratic Advertising on Facebook Ads is democratic for large, medium, small and micro businesses with relatively low cost and tangible benefits to all market niches.
2 - Assertiveness Ads can be easily segmented, that is, aimed at exactly the consumer profile that the company is looking for. It can be done by location, demographic profile or interests according to each user's data.
3 - Attraction Facebook Ads advertisers attract both the potential customers of the company and those who are still in the early stages, needing information about the service or product you need.
4 - Different formats The variety of ad templates that Facebook Ads has makes the tool even more interesting for its users. You can create ad campaigns for different consumer groups and different behaviors.
5 - Feedback You can keep track of the audience data for each ad in real time. The tool features easy-to-read reports that indicate campaign performance. A very interesting metric is the Relevance Index, which shows how much an ad is helping people.
Facebook Ads Statistics
Number of monthly active Facebook users worldwide through the second quarter of 2018 (in millions)
Facebook's overall advertising revenue in 2017 is $ 39.94 billion in advertising, which is also responsible for the vast majority of Facebook's revenue.
Below we reproduce data on Facebook advertising revenue available at this link published by the Statist website.
Facebook's business model depends on ads, as most of the revenue from the social network comes from advertising. By 2017, about 98% of Facebook's overall revenue was generated from advertising, while only about two percent was generated by payments and other revenues.
Facebook's advertising revenue stood at more than $ 39.9 billion in 2017, a new record for the company and a significant increase compared to previous years. For example, the social network generated nearly $ 7 billion in ad revenue in 2013, about 10 billion less than in 2015.
The average Facebook revenue per user also increased significantly over the same period, from $ 6.81 in 2013 to $ 11.96 in 2015. The US and Canada are important markets for Facebook, considering the average revenue per user (ARPU ) in these two countries, which is well above the global average. Facebook's ARPU in the US and Canada was $ 13.54 in the last quarter of 2015, while the global average was $ 3.73. In Europe, Facebook's average revenue per user was $ 4.5 for the same period of time.
In terms of segments, mobile is the most promising form of advertising for the company. By 2015, Facebook's mobile advertising revenue already accounted for 77% of total social network advertising revenue. Facebook's mobile advertising revenue is expected to grow from an estimated $ 13 billion in 2015 to $ 60.68 billion by 2021, and boost the company's growth in the coming years.
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