Social media platforms are perfect for marketers looking to maximize their return on advertising investment. One of the most widely used advertising platforms by marketers is Facebook, which had over 2.6 billion monthly active users in the first quarter of 2020 alone.
Facebook is the king of social media advertising and many businesses use it to get huge returns on investment from their marketing efforts.
Despite all the advantages recognized by marketers, there are some details to keep in mind so that you can successfully advertise on Facebook. A successful ad is one that gets customers to convert into buyers, so it is important to understand how conversion rates work on Facebook.
Anyway, here’s what you can expect from your Facebook ads!
What is conversion rate?
Before we get into the subject of Facebook Ads, let's define what exactly a conversion rate is .
In simple terms, conversion rate is a metric used to measure the success of an ad.
To be more precise, this metric will tell you the exact percentage kenya phone number list of your ad visits that end up in conversion. The term “conversion” can vary depending on your goals, whether you’re looking to sell your products or get your visitors to fill out a survey , write you an email, book a phone call, etc.
Source: Wikipedia
The conversion rate percentage formula is simple:
(Number of conversions / Number of visits) x 100
So, if a Facebook ad gets 2 out of 50 people to buy a product ( 2/50×100 ), it will result in a conversion rate of 4%.
Your ad could sell up to 100 products and still be less profitable than one that sells 20 products. That's why conversion rate is so important. The higher the conversion rate, the higher the profit.
Advertising on Facebook
If you're planning to advertise your business on Facebook, it's important to first understand how the platform works.
Facebook has a huge user base and is popular with all types of users. However, it is important to note that in recent years, the average age of Facebook users has increased. It is a platform targeted at teenagers and high-income users, and is likely to remain the same.
According to their 2019 financial reports , only 6 % of Facebook Ads revenue comes from desktop computers. That means that 94% of revenue comes from mobile phones . This fact must be taken into account when creating your ads. All of them must be fully compatible with mobile phones.
Any type of business can use Facebook to advertise. Some industries get better (or more frequent) results, but Facebook's cost per click (CPC) and targeting algorithm are designed to suit all types of advertisers. It's also perfectly compatible with local geolocation ads.
Facebook advertising is clearly profitable, but what kind of results can you expect?
What is a good conversion rate for