Facebook advertising is a goldmine for businesses. Businesses new to Facebook advertising are usually confused about whether they can even benefit from the platform. However, as per the data, around 97% of people prefer using paid ads to grow their businesses. With the massive number of users on Facebook, it’s impossible to not have the target audience/potential customers of businesses on Facebook.
In this guide, we will help you understand how to get started on Facebook advertising in India and what best practices you need to utilize to be successful with paid ads.
What Exactly Is Facebook Advertising?
Businesses utilize Facebook advertising, which is paid posting, to market their goods and services to Facebook users. Facebook users are typically targeted with ads based on:
- Demographics
- Location
- Interests
- Additional profile details
Businesses set a budget for their advertisements and place bids for every click or thousand ad impressions.
Facebook has advertisements spread out across the whole program, including feeds, stories, messengers, and more. They resemble regular postings in appearance, but they are always marked as sponsored to indicate that they are advertisements. Compared to standard posts, Facebook ads include more capabilities, such as CTA buttons, links, and product catalogs.
How To Find the Best Facebook Ad Strategy?
Here is how you can figure out which strategy is working for you and which is not-
● Calculate your average customer value
Because many advertisers instinctively want to concentrate more on the creative side of things, average customer value is underrated in the world of digital marketing. However, the more you can afford to pay to acquire a customer, which has an impact on your Facebook advertising, the greater your average customer value.
It also has an impact on volume. If your company’s average customer value is low (i.e., consumers don’t normally spend a lot with you), you need a lot more clients, which has an impact on how you promote. Naturally, the opposite is true if your average customer value is high.
Keep profitability in mind when calculating customer value. Profit per customer is quite important in this calculation. The average customer value can be raised by upsells, cross-sells, and referral schemes that promote word-of-mouth advertising.
● Analyze the competition of Facebook ads
Let’s get into the specifics of the competition. The development of Facebook and Instagram as ad platforms suggests that competition is mostly mirrored by region. If you market a good or service that you only provide locally and that can only be provided locally, you will face significantly less competition, than if it can be transported nationally or globally. That is the simplest method for defining low and high competition on Facebook.
Consider the competitors’ businesses that your clients can choose to deal with or make purchases from. How many other businesses are there in your town similar to yours? And how many of those run Facebook and Instagram ads?
What if you’re selling original goods on the Internet? That would also involve a lot of competitors. Thousands of other advertisers are eyeing the same audience, despite the fact that you have managed to assemble your particular portion of the market.
It’s evident that there is a sliding scale when comparing local, national, and international competitiveness.
Choose The Strategy That Works For You
The two points mentioned above—your competition and average customer value—are going to determine the strategy you need to use for Facebook advertising in India. Here is how the approach changes depending on where you are in the grid.
● Low Competition/Low Average Customer Value
You don’t need to make a lot of an impression with your advertisements if your company has little competition and a low average customer value, like a restaurant, hair salon, or local shop. It is frequently sufficient to just provide individuals with information about your company, offers, product, or service for them to express interest. Usually, you don’t require original advertising ideas or an unconventional strategy.
Your objective is to generate a ton of attention, make your business as busy as it can be, and concentrate on offering first-rate client service. You want to give a customer a satisfying enough experience to entice them to return time and time again and suggest your business to their friends and family.
This is crucial to remember because it’s doubtful that your first transaction will be profitable. Therefore, you should usually utilize the reach campaign aim instead of brand awareness, although they will work similarly.
● High Average Customer Value/ Low Competition
Local companies with few competitors and high average customer values are common, but their clients are significantly more valuable than in the prior case. Everything changes as a result of the high average customer value because you are no longer required to operate your efforts as loss leaders. With the clients you bring in, you can make good money.
Your offer can be directly advertised. A lead generation campaign or a conversion campaign can be used to generate leads for your website. These campaigns are frequently highly successful, and relatively simple, and the budget is frequently adjusted to reflect capabilities.
● High Competition/ Low Customer Value
Physical product manufacturers and online retailers often fall into the “high competition/low average customer value” category. This is the biggest category in Facebook advertising in India, at least in terms of ad spend, if not per advertiser. But it’s also the most challenging tactic to succeed with on Facebook and Instagram.
There is a lot of competition, so you must take many steps to stand out. Your clients aren’t worth much, so you can’t afford to spend a lot of money on them. However, you can offer a little discount to attract customers and differentiate yourself from your competitors.
In such cases, it’s important to spread word of mouth and sell your product to as many people as possible.
● High Average Customer Value/High Competition
High average customer value/high competition make up the final category. These are primarily companies that offer informational services like coaching, consulting, and courses.
Even if you are competing against a large number of companies and can frequently supply these things remotely, you still make a sizeable profit when someone purchases your product/service. You don’t need to incur a loss or break even on the initial transaction because your consumers are very valuable.
It all comes down to standing out from the competition with these firms. It is suggested to use a content omnipresence campaign as a tactic. With this strategy, you run an ad stack of 8–12 ads concurrently to your target market.
The goal is to pick your target market and persistently advertise to them for several weeks or months. Because of your reliability—you’ve consistently shown up and delivered—you want to establish yourself as the go-to individual or business that customers want to do business with.
Conclusion
Hopefully, all of the tips in this post have given you a bit of clarity, and you’re now prepared to use your imagination.
The most crucial thing you can do to guarantee your success on Facebook is to be original. Avoid doing what everyone else is doing and follow the crowd. Likewise, you are not required to consistently adhere to “best practices.” To identify what works best, you occasionally need to slightly bend the rules.
Utilize the affordable testing choices for Facebook advertising in India. Do your research before investing a lot of money in a campaign, and don’t be hesitant to experiment.