Facebook Ads: How to Run Profitable Ad Campaigns

Facebook advertising can be either profitable or a massive loss for businesses. It depends on your Facebook Ads campaign and how you optimize your ads which will determine the outcome of your Facebook advertising.

I am sure you have come across multiple Facebook ad tutorials but not many of those focus on strategically teaching you how to make your ads more profitable.

Facebook as a platform is an awesome tool that helps small businesses grow from zero to heroes. It’s simply the most used and the most popular social media platform with a lot of your target audience spending time on it every minute of the day.

Although the opportunities on Facebook Business are endless, It takes smartness to get profitable with your ads because of the ever-changing algorithms and bidding strategies of your competitors.

However, tools like Facebook pixel, Facebook audience insight tool coupled with micro-targeting could be a way out for profitable Facebook Ads.

The aim of this article is to educate you on how to create and optimize your Facebook Ads campaigns to be more profitable.

So let’s jump into details looking at what you need to know about Facebook ads and profitable Facebook advertising.

Making your campaign profitable

There are many twists to Facebook advertising and understanding some of these and how Ads works on Facebook is the only way to get your campaigns profitable.

I will take you through what you actually need to do and when to do it to get a high return on investment (ROI) on advertising. These include the type of Facebook ads to create for each campaign, data collection and reuse, audience research and interest targeting.

so let’s jump into it.

Facebook Pixel installation

So why do we start with Facebook Pixel? Well see why here below.

One the first and the most important thing to do is to install Facebook Pixel on your website. This could be done on different levels depending on your products and services.

It is important to understand the type of data you need and where you need to collect the data using your Pixel.

Facebook Pixel is extremely important for your ads hence targeted advertising all depend on quality data.

Make sure you install your Pixel before you can launch your first campaign.

Audience research

Understanding your target audience is one sure way of getting your ads to perform well while saving you the unnecessary cost of advertising on Facebook.

Facebook has provided one of the best tools for audience research known as the “Facebook audience insight tool”.

With the Facebook audience insight tool, you will be able to understand the demographics and psychographics of your audience giving you an edge for more precise targeting.

A great combination of the Facebook ad library and Facebook audience insight tool will definitely help you understand your target audience better and the type of ads to create.

Take a look at how to use the two tools for better results.

Facebook Targeting

Facebook targeting helps advertisers reach their target audience more accurately as explained in the above sub-topic (Audience research). Facebook provides the advertiser with data such as Demographics, interests, behaviors, locations, and connections.

The advertiser uses these data coupled with the custom data collected using the Facebook pixel as well as using the Lookalike audience to expand the audience based on the already performing audience.

It is vital you carefully customize your audience, target more accurately and then expand with the lookalike audience to expand your reach to increase your ROI on Facebook advertising.

Placements

There are multiple Facebook Ad placements to choose from when creating a campaign. Some are not as effective as others. By default, Facebook will use automatic placements (recommended) if you do not select your placements.

However, it is better to use manual placements. This way, you will be able to select exactly where you want your ads to be shown either on Facebook, Instagram, or other Facebook placement options.

This is also a cost-saving major which helps you keep your budget in check.

Bidding and budget

the bidding strategy also plays a role when it comes to profitable advertising basically having a high ROI on your advertising.

You have to make you don’t bid too low and not too high to avoid overspending and invaluable clicks.

Your max CPC bidding should be decided when you know or understand your customers’ lifetime value. The following article shows how to calculate your max cost per click.

Read: How to calculate maximum cost per click

Facebook Ads

Facebook has various types of ads for advertisers to choose from depending on their goals. This might be the type of product, service or niche they are promoting.

So let’s take a look at the various types of Facebook Ads you can create.

Facebook Image ads

Image ads may look simple but actually powerful ads and very easy to create with few clicks.

These ads can be created by the advertisers in various ways, either by boosting an already posted photo on your Facebook business page or adding a photo and some text description that tell a unique powerful story.

One important thing you need to know about Facebook image ads is your picture must be attractive and meet the Facebook ad requirements.

Try as much as possible not to include too much text in your image ads.

Facebook Video Ads

There are many placement options for video ads on Facebook, These video ads are allowed on stories, in-stream ads on Facebook videos, and Newsfeed.

These video ads give the advertiser the opportunity to showcase their services or products in action in other to motivate people to take action that leads, to sales or conversions.

Carousel Ads

Carousel ads are known to be one of the most engaging ads. This ad type was designed for eCommerce to take advantage of showing multiple products on the platform.

However, these ads became very popular among all businesses using them to showcase their various products (goods and services). Across all verticals, brands use carousel ads to display many images telling stories of their products and services.

Compare to image and video ads, an experiment show that carousel ads have a higher click-through rate (CTRs%) for website clicks as well as lower cost per click (CPC). It will be created to try it, especially when you are selling your digital and physical products online.

Facebook Slideshow Ads

These ads have the ability to catch the viewers’ attention fast and easily with the sliding images that almost display like videos. These ads are created with images and short videos with great motion.

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They are easy to create and do a great job of storytelling, brand awareness and multiple product advertising.

Because these ads load faster than video ads while consuming less bandwidth, they work very well even in areas with low internet speed.

Use them if you believe your target location does not have high-quality internet.

Collection ads

These are one of the best Facebook mobile ads that give your customers the opportunity to buy your products on their mobile phones without leaving the Facebook page.

They are a great opportunity for eCommerce and people selling multiple products, for example, fashion products (clothes and shoes etc).

You can display up to five products and showcase your shop online while giving your customers the opportunity to easily buy your products on the go.

Note: Facebook collection Ads work only on mobile devices.

Instant Experience ads

These are Facebook paid ads that work hand in hand with the collection ads to deliver a great user experience on mobile devices.

These ads are a full-screen ad format that loads 15 times faster than a mobile website outside of Facebook.

It’s a great way to give people access to additional instant experiences on mobile content.

Facebook Ads Sizes and Ads Specs

One of the things to keep in mind when creating Facebook ads is the ad sizes and the specifications guide by Facebook. It’s important for user experience as recommended by Facebook advertising.

Here you will get a complete guide to Facebook ad sizes Facebook ad sizes.

Hootsuite has compiled a set of 16 free Facebook ad templates you can use to help you create your ads within a few minutes.

Text and objective specs for Facebook ads

It’s always important to maintain the recommended text limits while creating Facebook Ads. If you have too much text on your ads, it will be cut off.

You also need to understand which types of Facebook ads work with each of the ad campaign objectives described above.

Video ads

• Headline: 25 characters
• Link description: 30 characters
• Body text: 125 characters
• Campaign objectives: All except catalogue sales

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Image ads

• Headline: 25 characters
• Link description: 30 characters
• Body text: 125 characters
• Campaign objectives: All except video views

Slideshow ads

• Headline: 25 characters
• Link description: 30 characters
• Body text: 125 characters
• Campaign objectives: All

Facebook Stories ads

• Text: No set character count. Aim to leave 250 pixels text-free at the top and bottom of the ad.
• Campaign objectives: Engagement, messages, catalog sales, store traffic

Carousel ads

• Headline: 25 characters
• Link description: 20 characters
• Body text: 125 characters
• Campaign objectives: All except engagement and video views

Collection ads

• Headline: 25 characters
• Link description: N/A
• Body text: 90 characters
• Campaign objectives: Traffic, Conversions, Catalog sales, Store traffic

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Instant Experience ads

• Text: Blocks of text up to 500 words each.
• Campaign objectives: All except lead generation, Catalog sales, and Messages

Messenger Inbox ads

• Headline: N/A
• Link description: N/A
• Body text: 125 characters
• Campaign objectives: Traffic, App installs, Conversions, Catalog sales, messages

Facebook Ads Costs

Facebook Ads cost is not fixed and varies greatly depending on the GEO and your bidding strategy plus your relevance score.

However, you will be able to find more in-depth details about Facebook Ads costs here: Guide to Facebook and Instagram advertising cost

Applying some of the strategies discussed in this post will significantly help lower your ad cost and in turn impact your ad advertising ROI.

Wrapping up

So much is involved in running profitable Facebook Ad campaigns. Many of these tips and tricks are discussed here.

It will still depend on your type of Facebook campaign, your budget, and the effective implementation of these strategies.

You should also ask for help if necessary. We are always here for you. Let’s also know in the comment section which of the tips here is the most important to you.

If you are an experienced Facebook advertiser, please share your tips and tricks in the comment section too to help others.