How does Facebook Ads Work

SilverLakes Auto Car Dealership Facebook Ads designed by Chilli Media

You have most probably heard of the power of Facebook ads, or hear that some people have huge success with Facebook ads while others feel like it is a waste. So in this article we will talk about the ins and outs of Facebook ads for any business in South Africa and Africa

How does Facebook Ads work?

Whenever your ad has a chance to appear to someone in your target audience, it goes into an ad auction to decide if your ad gets shown or if another one does. This auction system is set up to help you get the best possible results for your budget, while making sure people see ads that are relevant to them.

To make your ad more competitive in the auction, there are a few key strategies you can use. Focus on choosing the right ad objective, zeroing in on the perfect audience, setting up your ad effectively, and more.

 

Nissan Facebook Ad for Kenya - Africa designed by Chilli Media

 

Understanding Facebook Ads Pricing

What is Facebook Ads Pricing?

Facebook Ads pricing means how much money you spend to show your ads on Facebook. When you create an ad, you pay Facebook to show it to people. But here’s the catch—you’re not the only one who wants to show ads to these people. Many other companies also want to show their ads to the same audience. So, you have to bid against these companies. The more popular the audience, the more you have to pay.

Boosted Posts vs. Sponsored Posts

Boosted Post:

A boosted post is when you take a regular post from your Facebook page and pay to show it to more people. It’s the simplest way to advertise on Facebook. You just pick a post, choose your audience, set a budget, and let it run. However, the options for targeting and control are limited.

Sponsored Post:

A sponsored post, on the other hand, is created in Facebook Ads Manager. It offers more options and control. You can define your target audience in much more detail and choose specific objectives like website visits, app installs, or event responses. You can also use advanced features like A/B testing to see which ad performs better.

 

What you need to get right to get the best performance out of your Facebook ads

1. The right objective specific for your ad and business (see the table below for more details)
2. Select the right budget for your South Africa or Africa business
3. Select the right audience to target with your business ads on Facebook

  • Target the right audience on Facebook.
  • Ensure your ad reaches those most likely to engage.
  • Consider who you want to reach with your ads.
  • Define your ideal audience based on location, age, gender, language, and interests.
  • Avoid overly narrow targeting.
  • Starting with a broad audience of two to ten million people increases your chances of finding the right fit.

4. Create the right sales or marketing messages and eye catching designs or visuals so that your ad stands out from the rest of the content on the Facebook or Instagram platform.

Simplified Ad ObjectiveYour Business GoalOriginal Ad Objective
AwarenessIncrease awareness of your business by reaching the maximum number of people who are likely to remember your ad. Ideal if your business is new or recently rebranded and you want to build familiarity with potential customers.Brand awareness, Reach, Video views, Store traffic
TrafficDrive more visitors to an online destination, like your Facebook Page, Instagram shop, website, or app. This is perfect if you're running a flash sale or want to direct potential customers to a specific page explaining your services.Traffic
EngagementConnect with people most likely to interact with your business online, send messages, or take actions on your ad or Page. This is useful if you want to encourage potential customers to start conversations through Messenger or engage with your posts.Engagement, Video views, Messages, Conversions
LeadsGather leads for your business through messages, phone calls, or sign-ups. If your goal is to get potential customers to subscribe to a newsletter, this objective can help you reach those willing to share their information and stay updated on your business.Lead generation, Messages, Conversions
App PromotionEncourage mobile users to install your app or take specific actions within it. This is ideal for driving app purchases or promoting new features to potential customers.App installs
SalesTarget individuals who are likely to purchase your products or services. If you want to drive sales on an e-commerce site or optimize for actions like adding items to a cart, this objective is your go-to.Conversions, Catalogue sales

Why Facebook Ads Manager is Better than Boosted Posts

When you use Facebook Ads Manager, you have more control over your ads. You can decide what your ad should do—like get more people to visit your website, sign up for your newsletter, or buy your product. You can also target your audience very specifically. For example, you can choose to show your ad only to people who live in a certain city, are a certain age, or have specific interests.

How Targeting Works

Targeting in Facebook Ads Manager is like using a magnifying glass to find the exact people you want to see your ad. You can define your audience by their location, age, gender, interests, behaviors, and even the devices they use. This helps make sure your ad is seen by the people who are most likely to be interested in what you’re offering.

Creating Ads for Different Objectives

In Facebook Ads Manager, you can create ads for different goals, called objectives. Some examples are:

  • Traffic: Bring more people to your website.
  • Engagement: Get more people to like, comment, or share your posts.
  • Conversions: Encourage people to take a specific action, like making a purchase or signing up for something.

Facebook Ads Pricing Explained

Facebook Ads pricing works like an auction. You bid against other companies to show your ad to a specific audience. The more companies that want to reach the same audience, the more expensive it becomes.

Example:

Imagine you want to sell car insurance to young, online shopping fashionistas in wealthy areas. This group is also being targeted by online retailers, entertainment channels, and fashion magazines. Because so many companies want to reach this group, the cost to show your ad to them is higher. You’ll need to bid more to make sure your ad is seen by this audience.

This is why it’s important to be smart with your targeting and budget. Sometimes, it might be better to find a less competitive audience that still fits your product or service.

Conclusion

Understanding Facebook Ads pricing and the differences between boosted posts and ads created in Facebook Ads Manager can help you make better decisions for your advertising strategy. By using detailed targeting and setting clear objectives, you can reach the right people and make the most of your advertising budget.

 

Understand the next steps.

After submitting your ad, it will undergo Facebook’s review process. Once approved, your ad will go live.

Use the results to refine future campaigns. Even minor adjustments can significantly impact your ad’s performance.

 

What We do at Chilli Media For Your Business

For the best ad performance, Chilli Media takes a hands-on approach. We monitor your ads closely to track how they’re performing in real-time. We continuously test different elements, such as audience targeting, ad creatives, and messaging, to see what resonates most with your audience. Based on these insights, we optimize your ads to ensure they deliver the best possible results. By making data-driven adjustments, we help you maximize your return on investment and keep your campaigns running at their peak.

Are you looking to take your digital marketing efforts to the next level? Look no further than Chilli Media Digital Marketing Agency.

At Chilli Media, we are a team of experienced and knowledgeable professionals who are focused on helping our clients achieve their marketing goals. We have a deep understanding of the latest trends and technologies in the digital marketing industry, and we use this knowledge to develop effective marketing strategies that deliver measurable results.

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