Creativity is the biggest and most important thing you have in Facebook advertising. So our last post from our mini-series “The Most Common Mistakes In Facebook Advertising” is about the use of creatives. If you have good creative that reaches the right people, it will work great regardless of the targeting – whether you use a 1% lookalike or a BROAD campaign.
What metrics are important to watch
At the same time, creative is extremely important in determining Cost-Per-Click and Cost-Per-Conversion. It’s important to remember that your pricing is based on one basic metric – CPM, or Cost Per Thousand Impressions. The Cost Per Click is only a function of CPM – if your thousand impressions cost €10 and your CTR is 1%, then your click will cost €1. If you have a conversion rate on the site from Facebook ads of 2%, then two people out of 100 will buy, so your conversion will cost 50 EUR.
You can lower this price by optimizing the metrics in this funnel. So a better-optimized website with more traffic and relevant creative. Increasing the conversion rate twofold is relatively difficult, increasing the CTR two times is easier. At the same time, the more people you “funnel” in the entry, the more they will take a green action on the exit. It’s easier than trying to increase the number of people who go through the conversion bottleneck by changing the color of the button on the site. (That’s not to say you shouldn’t optimize the site.)
If you increase the CTR x2, you suddenly pay 50 cents per click and the conversion will cost you 25 EUR. Of course, we are talking about relevant creative, not clickbait. At the same time, better creative means lower CPM, which is the primary number in this equation. Of course, CPM is also influenced by targeting (the higher the targeting of “quality” people, the higher the competition in the auction and the higher the CPM).
However, the other part of CPM is the estimated action rate and value => the more relevant and interesting you make your Ad for people, the less you will pay for the ad. First of all, FB wants to show relevant and interesting ads to people, because it doesn’t want to drive them away; without people, it would have nothing to make money from.
So better quality creative means not only a higher relevant CTR, but also a lower CPM.
How to get better creative
How to get better creative? At the moment, the best practice is called user-generated content. This is content that looks native to a given platform. Photos and videos from real people. They can be shot with a mobile phone. You can include native platform elements like stickers. For example, simple boomerangs shot on an iPhone work extremely well for us, where a person holds a product, moves it around, and over it are three text stickers with customer reviews.
Ask for videos and photos from customers. Give them X EUR discount on their next purchase if they do it for you. Have them make a 15-second video of them unboxing your product or talking about why they use it.
Don’t you have material like that? Make it yourself or pay someone. It will always be more authentic than polished photo bank images or gradient design banners => I almost always find UGC works better than “classic” ads.
Summary
You need to constantly test new creatives, even a few a week, or at least a few a month. Have a separate campaign to test new creatives, either on a narrow lookalike or if you want to scale, on BROAD. If your new creative works on BROAD, it will always work everywhere else. Pick the best creative from the test, include it in the scaling campaign and test other new creatives.
I’ve seen very few people use social proofing creatives. In new campaigns, they also re-create the same creative. If you’ve found a new creative that works well, take it and run it in a separate campaign with the goal of post engagement to a narrow audience of people who have shopped with you in the last X months. Only your customers. Let them comment on it, tweet it, put positive social proof out there.
That way, new people in TOFU prospecting who have never heard of you will see these comments. Social proof can dramatically increase efficiency, people’s confidence in the product and CTR. People trust such comments much more than the reviews published by you on your website. Don’t underestimate it and take advantage of it.
All credits for this series goes to Martin Palsovic, E – commerce consultant with more than 14 years of marketing experience.
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