More you invest in FB ADs, the more you get ROI?

Since an old saying says, low risks mean low returns, why don’t we turn around the table and make it, high risks mean high returns? As we dwell on the question of whether you get more return on investment if you invest more on Facebook advertisements, you have to take the risk of running an ad campaign.

How effective is Facebook?

With multiple social platforms for you to promote your brand, products, and services; why Facebook of all? Why should you choose Facebook to run an ad? The answer is quite evident with the recent strata of the population actively using the social media. 43% of the world population actively uses Facebook, while more than 87% people are merely present on the platform. Amidst ample of applications and social media platforms, Facebook has been in the lead for all these years. Why? Facebook is leading with most of the active world population on the network for business people to endorse their products and brands.

In comparison to other social networks, content consumption is more on Facebook than Instagram, which is the second largest network in the world. But if we are talking about the ad-world of social media, Facebook has won the race long ago. The fact that your Instagram doesn’t have its own ads manager and Facebook provides it with the advantage of running ads on the application, is enough for you to know how large is the Facebook ad market.

The return on investment is all about what type of campaign you are running on your Facebook page. It’s just like what you sow is what you reap! If you are running a retargeting ad, then your ad will be displayed to the people that have already visited your website, and if you are running a traffic ad, then it will be shown to everyone as per the audience parameter selected by you. You can test your ads with different pictures, different words, and a different audience to target with different designs.

A survey says that a large population is affected by the ads they are shown throughout the day on their social media news feed, and most of the people visit the website through them. Wouldn’t you land up in a gear store that keeps on showing their fresh arrival in your news feed? Let’s be honest, we all will visit the website to check out more products of the brand, at least. Thence, build an objective before running an ad campaign. What do you want on your website? More conversions or more traffic? More visitors or more followers? Define a goal and invest in the ad to get the return. As an add-on, custom the audience by various metrics like age, gender, location, interest, occupation, and other details filled by the users.

Creativity is the key to lure people. How many of you will agree on it? When you come across a creative content, it engages you till the end. Facebook users are purposely not there to see your ads; they are there to stalk, like, comprehend, and pass the time. Run your ads with engaging videos for the users to relate and the least they will do is watch the complete video. You never know the ending of that engaging video may force the user to click on the CTA.

What are the factors that make sure your ad campaign will give you a positive return?

Factors that affect the return on your ad :

Your bid – How much you bid on the ad which you are going to run.
Ad quality – The quality of your image or video.
Estimated action for the user – The defined CTA for the user, is it even relatable to the content of the ad.
Audience – The target audience of your ad. Maximizing the target will not benefit but customising it and displaying the ad to a niche audience will make a difference.
Time of the ad – Is it a peak time for your business or a nadir time?
Ad placement on the network – Where will be the ad placed in people’s news feed?

How can you measure the return on investment?

The return on investment is estimated either through social ROI or financial ROI. Let’s face it, your store or page will either get an increase in the conversions or the leads. Either way, your brand will see a rise! Social return on investment is when your ad gives you new followers, potential customers, more likes, comments, and shares on your facebook page. The financial return on investment is when your ad turns your leads into customers. Therefore, be wise with the kind of ad you run on your Facebook network.

Ways to measure the engagement of returns on investment :

1. Facebook insights
2. Reach
3. Traffic
4. Conversion
5. Conversion tracking tool
6. Pixel

So how do you think? The more you invest in Facebook ads, the more you get the return on investment? Is it a myth or is it a fact? And are you willing to take the risk for your business?