Facebook ads are increasingly becoming popular as a form of advertising because this feature is highly effective. However, if you aren’t careful, you can get a real surprise when you discover your bill for just a few days is hundreds of dollars. This is why it is so important to create a click through rate threshold.
In addition, some ads will outperform others. The last thing you want to see happen is that you throw your money away on the ads that are not performing well. This is another reason to have a click through rate threshold in place for all Facebook ad campaigns.
Let’s look at an example. You create a campaign designed to drive more people to your small business’s page to increase your fans at under $0.30 a fan. However, the ad generated 3 fans at the minimum and 21 fans at the maximum bid. This is assuming all of your clicks converted to likes. What this means is that the cost per fan ranged between $0.65 and $5.60 and the majority were at the very highest end. The end result – you would kill the ad for underperforming. The money spent on the ad could have been much less if you had created a Facebook ad threshold.
It’s important for you to determine what click through rate you are okay with and then to immediately kill any ads that are not performing to the standards you set.
Doing so will ensure that you don’t have any huge surprises or bills you can’t afford. Remember, when you set up your Facebook ad campaigns you provide your credit card information and authorization to charge that credit card, so it really is important that you know what you may be charged with.
Facebook ad campaigns are a great social media feature to include in your strategy to bring new visitors to your Facebook page, to your website, and/or to run a promotion. However, before you jump in with both feet, we encourage you to take the time to learn and understand just how Facebook ads work so that your experience is a positive one and you actually reap the benefits of a Facebook ad campaign. Because if you do not understand how it all comes together, you do face the risk of a very high charge that won’t be to your advantage.
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