The Future of Facebook Ads in 2020 (Is it still profitable?)
Let’s get real.
It’s getting harder and harder to get clicks and conversions these days.
Why is that?
Well, it all comes down to basic math.
Facebook has over 2.4 billion users and 7 million active advertisers; and those numbers are growing every single day. That means that Facebook has only 342 active users per advertiser.
When we look at the cost-per-clicks, we can see a sharp increase in price. From 2018 to 2019, we can see that the average cost-per-click for Facebook Newsfeed Ads has increased from 0.43¢ to 0.64¢.
The metrics for cost-per-result are also very revealing. From 2018 to 2019, the average cost-per-result decreased from 2.24% to 1.20%.
Ultimately, this means that advertisers are now paying more money for worse results.
Does this mark the end of Facebook advertising?
Facebook is still the top social media advertiser in the world right now. But with the ever-growing crowded market, you’re going to have to get more strategic to stand out and make your ads work for you.
Here’s a couple of strategies that you can use to make sure your ads are competing at an effective level in 2020!
Use retargeting ads for your really qualified prospects. These really qualified prospects are people that have already shown some interest in your product or service. This may mean they’ve visited your website, clicked on your ad, or even abandoned a cart with you. You want to retarget to these people who have a higher probability to convert.
Once you have people that are converting, use a 1% lookalike audience on Facebook to find prospects who are very similar to previous customers. These people have a higher percentage of converting than pooling from a group of random people. This will help you hone in and save a ton of cash!
Always remember to split test your creatives! This means switching up your ad copy and images to compete against each other in order to find out which one is most effective. You’d be surprised at the astronomical differences in cost and conversion that these tiny tweaks can make!
Lastly, avoid the dreaded “Ad Fatigue.” Ad fatigue occurs when people see the same ad over and over again and become desensitized to it. This drives up your advertising costs and lowers your credibility with Facebook because people are no longer engaging with your ads. So keep it fresh and don’t overuse the same ads into ad fatigue.
These are just some simple strategies that you can use to keep a competitive edge in 2020. If you want a more personalized strategy for your particular brand and niche, be sure to reach out to us at Cloud Gate Media for a free consultation and a no obligation proposal.