Facebook Ads is a way for businesses to bring their products/services to the billions of users on this platform. There are 2.08 billion monthly users. In addition, advertisers also need to deliver the right message to the right target audience. People are more likely to want the product or service of the business. In this article, we will summarize the information you need to know so that advertisers can create an effective Facebook Ads campaign.

Advantages of Facebook Ads 

Ads is one of the popular advertising tools with many advertisers or businesses. Because of the benefits of this social network:

•       Reach many different customer files 

With billions of users every month, Facebook’s user file belongs to many different audiences based on age, geography, job… All the above information helps in delivering ads to the right target audience campaign goal.

•       Interacting with customers 

Businesses or brands can leverage advertising to nurture and help grow followers and fans on Facebook. Interacting with customers helps the company capture information faster such as: customer problems, latest trends, what competitors are doing, promotions, campaign announcements or new products….

•       Increase website traffic 

Advertisers can leverage Facebook Ads to drive customers to a business or brand’s website.

• Increase conversion rate

Sales is the goal of any brand or business. Facebook Ads offers a variety of formats to help advertisers market their products to people in need.

How to charge Facebook Ads This social

Networking platforms offer a variety of payment methods according to the purposes and needs of advertisers.

•       Cost Per Click (CPC): Advertisers will pay only the cost each time a viewer interacts with the ad.

•       Cost Per Like (CPL): Every Facebook post provides a “like” or “like” button. When the viewer “likes” the ad, the marketer must pay.

•       Cost Per Mille (CPM): The ad provider only charges for every 1000 ad impressions.
•       Cost Per Action (CPA): Depending on how advertisers set up actions such as downloading an app, visiting a website, etc., the system will charge a fee when viewers click on the attached buttons.
•       Relevant: On a scale of 1 to 10 and only displayed after the ad has 500 impressions and user interactions, the system will charge the advertiser.
•   Frequency: This cost is calculated using the “impressions / reach” formula to indicate how often the ad appears to the user.

The Factors affect to the cost of Facebook Ads

Advertisers should pay attention to a few other items besides the above payment methods to estimate advertising costs most accurately. Avoid affecting the plan of the whole campaign.

1. Bid 

Facebook ads are decided by a bid system so there will be no certain number until the ad implementation. The business or advertiser will conduct a bid with other companies to get the best ad position. Basically, the bid is proportional to the interest in the ad space of the business.

Facebook Ads divides two types of bidding:

•       Automatic Bidding: The system will decide the bid based on the budget that the advertiser wants to spend in 1 day. If businesses are wondering about their bid, they can use this option, Facebook will calculate the most optimal choice for ads. 

For example, if you have a daily budget of 100,000 VND for a Facebook ad, the system will automatically calculate a bid and you will only get the number of clicks that roughly match that 100,000 VND daily budget.

•       Manual Bidding: The advertiser will offer the maximum cost to achieve the desired result. Also, the biggest budget doesn’t always win. Results also depend on other determinants such as quality, relevance, and click through rate.

The successful ad is then charged the lowest amount Facebook has set to buy ad space. Results will be determined by Facebook users’ estimated bid, quality, relevance, and action rate.

2. Quality and Relevance

Facebook Ads will give a scale from 1 to 10 to evaluate the quality and relevance of the business’s target audience. The higher the score is inversely proportional to the cost of the ad.

This factor is decided based on the positive and negative feedback of the viewers:

•       Positive feedback: click, like or comment on ads…
•       Negative feedback: the number of people who said they didn’t want to see an ad that wasn’t relevant to them.

In addition, this factor is also calculated by the click-through rate (click rate) which is the number of impressions / the number of times it was clicked. The higher the CTR, the lower the cost.

3. Estimated Action Rates 

Should advertisers consider the odds that the target audience will take the action being optimized for the ad? Because the cost of advertising will be low if the estimated action rate is high.

Some examples of what an estimated action rate looks like:

•       High Rate: The main goal of the promotion is to increase the number of “free eBook downloads”. When a lot of people see and take the action required by the ad, the action rate will be high.
•       Low Rate: The main goal is “selling a product” and the ad is linking to a landing page for free eBook downloads. This ad will be suboptimal, and the conversion rate will be low, resulting in a low action rate rating by Facebook.

4. Audience Targeting

An advertiser’s targeting and volume will affect the cost of Facebook Ads and the number of ads that are pursuing the same goal. If the audience is extremely popular, the cost will increase.

5. Placement 

Simply put, where ads appear on Facebook affects costs. Each placement option will have a

different advertising costs. Some advertising positions that businesses can choose from:

•       Facebook, Instagram message boards
•       Facebook video feed
•       Right column on Facebook
•       Explore Instagram
•       Messenger
•       Facebook Marketplace

Facebook Ads formats

To get the most out of Facebook ads, advertisers need to have a clear understanding of how and what ad formats are appropriate for each objective. Here are 12 different types of ads offered on Facebook Ads.

1. Image Facebook ads

Facebook image ads or photo ads are static images and accompanying calls to action (CTA). Facebook allows text to be placed on its image ads but should keep the words under 20% of the image. Advertisers can use image ads to promote products and include links to product pages.

2. Video Facebook Ads

Video ads are like Image Ads but in a different format to video or moving images. It is the most used ad format as 1.25 billion people watch videos every month and people spend almost half of their time on apps watching videos. Especially when using Facebook video ads, advertisers can choose from a variety of placements and objectives. These parameters determine the video request including the ad size, aspect ratio, and video length.

3. Instant Experience ads

Facebook Instant Experiences are full-screen, rich media ads that deliver rich content experiences to audiences. Instant Experience includes many of the features and capabilities of other Facebook ad types: images, videos, swiping through a carousel, clicking through tagged products, and even tilting to pan for angles unique. Instant experiences are a type of advertising that is highly engaging and utilizes the combination of multiple assets to create a rich user experience.

4. Poll ads

Poll ads allow you to survey your targeted audience with one question, giving them two answers to choose from. This ad type is only for mobile phones. Advertisers use Poll Ads to increase engagement with existing audiences and create brand awareness among new potential customers.

 

5. Carousel ads

Carousel ads include up to 10 images or videos to showcase a product or service that users can interact with. Facebook Ads allows you to have a separate link for each photo or video. Under each image or video, there will be a “Buy Now” button that goes directly to the sales page. Advertisers can use this format to highlight different benefits of one product, several different products, or even use all the photos together to create a larger image.

6. Slideshow ads

Slideshow ads create short video ads from existing still images, text, or video clips. The advantage of this ad is that the data will be 5 times less than regular video ads, the ads come to viewers with poor network connection to help attract attention easily, with little impact. In addition, advertising costs will be more economical when you do not have to spend too much effort to make a real video.

7. Collection Facebook ads

Collection ads include one main featured image or video, as well as three smaller images below. When a user clicks on the ad, they are taken to an Instant Experience. Collection ads only apply to the mobile format. Facebook Ads offers 3 main formats for this ad:

•       Instant Storefront: Have 4 or more products and want to focus on selling products.
•       Instant Look book: Apply to tell a story about a product or brand.
•       Instant Customer Acquisition: Focus on customer conversion rates.

8. Lead ads

This ad is extremely useful in the process of gathering information about potential customers, especially emails. Lead Ads only apply to the mobile format to optimize the customer experience when they can easily provide information. These ads are often used to collect newsletter subscriptions, sign up for product trials, or allow people to ask for more information from a brand.

9. Dynamic ads

This is a personalized ad specifically for potential customers. It will connect the in-store product catalog to the Facebook Events Manager and the Facebook pixel. Advertisers can leverage this type of advertising to market products to the customers who are most likely to be interested in them. 

The way Dynamic ads work is that when a customer adds a product to the cart on the brand’s website but does not perform the “buy” step, with Dynamic ads, that product will be promoted on their Facebook.

This ad typically appears with the Carousel ad carousel format that allows advertisers to target potential customers including:

•       Watched but not bought
•       Product added to cart but not purchased yet
•       Sell ​​more products
•       Sold with product

Facebook Ads is based on audience selection to optimize ads to reduce costs and improve conversion rates.

10. Messenger ads

Facebook Messenger ads appear in the user’s chat tab as well as between chats. Advertisers simply select Messenger as the desired placement.

In addition, Facebook Ads for integrating the “click on Messenger” button in other ads. Users can use it to chat directly with a salesperson or customer service unit.

11. Stories Facebook ads

This is an ad in the mobile format. Especially photos or videos used must be vertical to maximize screen area. Advertisers can apply this ad to Instagram and Messenger.

 12. Augmented reality ads

Facebook Augmented Reality Ads are rich advertising experiences for mobile users. Facebook Ads will use features like filters and animations to allow users to interact with the brand. Augmented reality ads are often used to expand a brand’s reach.

When a viewer interacts with the ad, Facebook Ads runs an augmented reality (AR) experience in which the user can view the product from new angles and explore the virtual product, mimicking the shopping experience live.

Final Conclusion

Facebook Ads is a convenient tool to help advertisers and businesses reach out more to their customers. If you are looking for a Facebook Ads unit or agent in Vietnam, please contact CleverAds immediately. We are the PREFERRED PARTNER of FACEBOOK with 15 years of experience in the Digital Marketing field.

Currently, CleverAds has branches in Hanoi, Ho Chi Minh City and Da Nang as well as several countries in Southeast Asia. Find out more information about CleverAds services right here.