how to reduce facebook ads
Facebook Ads: How to Reduce Wasteful Spending- So many people think that Facebook ads don't work,,wh
Updated on Jan 19,2023
Facebook Ads: How to Reduce Wasteful Spending
- So many people think that Facebook ads don't work,,when in reality,,they just aren't managing their campaigns correctly.,The good news is there are oftentimes,a few small tweaks that you can make to a campaign,to get much better results.,In this video, we're going to show you,how to identify the ads that are hurting your bottom line,and when you need to turn them off.,(smooth music),In this video, I'm going to share with you,the individual metrics and the trends to watch for,,but make sure you stick around to the end,where I'll talk about what you can test next.,When you're looking at your Facebook ad reports,,there are a lot of numbers in there,that can be overwhelming.,So I recommend focusing your attention to one main number,which is your cost per result.,Beyond that, there are a few key metrics,that will affect that result that you can optimize.,So let's jump into ads manager to get to all of this data.,You're going to click on the dropdown menu,that has the three small columns in it,to get to the performance and clicks report,and you'll see the key data that you want to watch.,If needed, you can also select the customized columns,in that dropdown menu,to add additional metrics into your report.,So what you're looking for is the cost per result.,Your cost per result is going to vary,based on the type of campaign you have set up,and the objective you have chosen.,So in this example, I have chosen a conversion campaign,with the objective of leads.,I was sending traffic to a webinar,where people could then sign up for my webinar,and Facebook would record the cost per lead.,You might be choosing an objective of traffic,where then the cost per result will be link click cost.,Or you might be choosing a conversion campaign,optimized around purchases.,With the cost per result,,there is no one size fits all number.,It's really going to depend on your industry,and what you're advertising.,One of the biggest metrics you want to watch,is link click-through rate.,Many people are sending traffic,from their Facebook ad to a website.,You want to make sure that your link click-through rate,is over 1%, because that indicates,that your ad is interesting to people.,If it's lower than 1%,,you may want to consider turning that ad off.,Two metrics that are closely related,are frequency and first-time impression ratio.,These two metrics show you how often your ad is being shown,and what percentage of people,are seeing your ad for the first time.,In general, I recommend keeping your frequency below three,for a cold audience.,For a retargeting audience, that frequency can go higher,because people are familiar with you.,Also, if you have a short promotion window,,it's okay to have your frequency go a little bit higher.,The next metric you want to pay attention to is CPM,which is cost per thousand impressions.,If this number is over $50,and you're not getting the results you want,,you may want to turn that ad off and try something new,which we'll get to at the end of this video.,To find the link click-through rate,,go into your ads manager,,select the column preset of Performance and Clicks,and then scroll to the CTR link click-through rate.,CPM and frequency are also in this report.,For first-time impression ratio,,you need to navigate to the ad set level,for an ad set that is currently running.,Select that ad set and then select Inspect.,Typically, I like to see a first-time impression ratio,of 50% or higher.,If it's below that, it may be time to turn the ad off,and choose a new creative.,Looking at the individual metrics is great,,but you also want to pay attention,to the larger trends of the ad.,You want to look at how it's doing over time,to see when it's time to turn that ad off.,Sometimes an ad will experience one bad day,and you don't want to turn it off prematurely.,If you're seeing a decline in performance of 30% or more,over five to seven days, your ad may be fatigued,and it might be time to try something else.,There are two ways to look at your trends.,One is to look at the charts in your ads manager,and the other way is to compare by timeframe,so you can see an exact percentage change.,To see the trends in your ads manager,,select the campaign ad set,or ad you want to look at and choose View Chart.,The other way to see your trends,is to compare your metrics week to week or month to month.,Go up to the date range,,select the date range you want to compare,and toggle the compare button.,Now just expand the column,so that you can see what the percentage difference is,in the cost per result.,In this case, the cost per result,has gone up 25% this week versus last week.,I may want to keep an eye on this particular ad set,and adjust or turn it off as necessary.,When deciding what you want to turn off,,you want to make sure you're looking at the right level.,You may need to turn off an entire ad set,,which is the targeting.,You may just need to turn off a particular ad,underneath each ad set.,For example, there may be an underperforming ad,that is taking more of the budget.,In this case, both ad sets are performing pretty well,but if I drill down into the ad level,,I can see that one ad is costing twice as much,and I should shut that ad down.,If you need to turn off ads or ad sets,,what should you try next?,I suggest trying different audiences,like perhaps a different lookalike audience,or perhaps some different targeting,or even narrowing down your age range,to see what the best performing age range might be.,For ads, one of the biggest variables,is going to be the images.,So you may need to try a different image,or possibly even adjust your text.,To find out more about testing, go here.,I'll be talking about what variables to test, budgeting,,and how to set up your split tests.,So I'll see you over there.
The above is a brief introduction to how to reduce facebook ads
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