What is Facebook Advertising?

Advertising on Facebook allows you to market to over 15,000,000 Australians Monthly in 2018

Social media is a hugely influential online medium and one that modern businesses in Australia should be capitalising on as part of an effective search marketing strategy (read more about social media usage in Australia). Facebook are the undisputed kings of social media, especially in Australia where approximately 64% of all internet users visit Facebook regularly.Facebook Advertising ROI in 2018

While a social media strategy is now an essential element of marketing campaigns for most businesses, advertising on Facebook lacks the wholesale success and credibility of search engines such as Google. However for certain niches such as fashion trends and products aimed at youth, Facebook advertising can be an effective means of ensuring your brand remains in the mind of your target market.

Facebook ads show up on the right hand side of the screen underneath Sponsored Links, and usually feature a heading, image, text and like button (as shown by Buzz Insurance to the right)

Quick Facts – How Does Facebook advertising work?

  • Facebook advertising is a simple, low-cost form of online advertising
  • Advertisers can opt for either pay-per-click (PPC) or per thousand impressions cost structures for their ad campaigns
  • There are two types of Facebook advertising, Premium and Marketplace. Marketplace is more commonly used
  • Ads are ranked based on the bid, ad quality and the past performance of the advert (if applicable)
  • Similarly to search engine advertising, ads can be scheduled for preferred periods
  • Facebook ads can be split-tested to determine how effective one version of an ad is in relation to another, helping to improve the cost-effectiveness of a campaign
  • Facebook offers guidelines on how to advertise and presents reports based on ad performance, demographic and social metrics – something which Google doesn’t offer
  • The Facebook Ad Manager provides you with an all-in-one interface to control your advertising campaign

Facebook advertising cost in 2018

What Does Facebook Advertising Cost?

Similar to search engine ads, Facebook ads have no set cost and the price of advertising will vary significantly depending on your industry and other factors such as the extent of your target audience.

Recent studies have shown that Facebook advertising costs have risen by as much as 40% compared with last year, outlining that the space is becoming more competitive and pricey.

Marketplace Advertisers are billed frequently, often daily, upon reaching a $25 limit. Daily budgets and spend limits can be applied to advertising accounts so no fees in excess of those limits are accrued.

Advantages of Advertising on Facebook

facebook thumb upThe main advantage of advertising on Facebook is that you can target your ad to a very specific audience. With the extensive profiles Facebook has built on its users, you can deliver your ads to specific demographics including age, gender and marital status. This profiling cannot presently be matched by search engines.

The other key advantage of Facebook ads is the low cost. Despite the recent rise, ad fees are still small when compared with search engines for most industries so it may be relatively inexpensive to discover whether or not it works for you.

Disadvantages of Advertising on Facebook

thumbs downAds on Facebook generally don’t receive the same click through rate (CTR) as other platforms such as search engines, primarily because Facebook users are not actively searching for a product or service like they are on Google.

Facebook ads also lack a certain credibility as an advertising platform. Users generally don’t like the ads and see them as a nuisance and the low CTRs support this notion.

If prices continue to rise as they have been, Facebook will lose it’s ‘cheap alternative’ angle.

Can roi.com.au assist with Facebook advertising?

Our PPC team have vast expertise in all forms of online advertising including Australian Search Engine Optimisation services and can advise on where your budget would be best spent. If you would like you would like to enquire more about our online advertising services, or are interested in social media strategy, contact roi.com.au today.


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