Search Engine Marketing

The Marketer’s Guide to Driving ROI From Facebook Advertising

The key to any successful marketing program is to set clear objectives, and Facebook marketing is no different. With the proliferation of Facebook advertising products, marketers are constantly presented with new opportunities to capture the attention of customers across every stage of the buying cycle. While some advertisers continue to view Facebook in traditional, transactional, performance marketing terms, successful Facebook marketers are beginning to adopt a “full funnel” approach. They select their objectives and use these relatively new creative formats to craft a holistic approach to marketing in this rapidly growing channel. Marketers can start by answering two fundamental questions:

1.) What business outcome(s) would you like your Facebook marketing investment to produce?

2.) How will you measure and optimize these outcomes?

Advanced Tactics

Beyond the standard goal of conversions, consider the awareness amongst your target audience of a new product line or promotion. Think about how to influence customer perception of your brand to increase the likelihood of purchase in the future. Consider building customer loyalty in order to drive repeat purchases from your top customers. Successful marketers are experimenting with awareness and consideration building techniques by utilizing new Facebook ad types and destinations, while at the same time continuing to focus on driving conversions by targeting Facebook users with purchase intent. Those able to identify and articulate clear “top of the funnel” and

“bottom of the funnel” objectives throughout the organization will ultimately have a more successful Facebook campaign experience.

1.) Consider the maturity of your brand and degree of equity on Facebook – How established your brand is on Facebook will shape the goals you select. For example, a startup may be new to Facebook and therefore may need to focus on fan acquisition in order to establish a community to engage with over the long term. Mature companies with a strong fan base may find it more appropriate to leverage their existing networks for word-of-mouth marketing and driving brand engagements.

2.) Consider your industry – What goals are appropriate and realistic for your business, your customers and the products you sell? For example, a marketer in the retail industry may set a specific sales objective at a target ROI and use a promotion to achieve this objective. A B2B marketer may instead choose to use Facebook ads for the objective of increasing awareness through a page post distribution strategy that promotes thought leadership.

3.) Consider the brand assets you have available to promote – Over the past year, Facebook has allowed marketers to promote numerous online and offline activities and assets, including mobile applications, offers, events, and Facebook applications. Consider which assets you have available to promote and how will they support each of your objectives. If Facebook-compatible assets are limited, develop new assets to promote.

4.) Identify the Facebook metrics that align with your objective – Consider the awareness and conversion metrics that make sense for your business. To fill the top of the funnel, are you concerned mostly with the reach and frequency of your message? Does it make more sense to focus on engagement metrics such as clicks, shares, and likes? Or would it be better to focus on driving leads, sales, or a combination of both? Have a conversation with your senior-level management about the short-term and lifetime value of each of these metrics and be sure to justify the importance of investing towards these objectives.

5.) Confirm tracking and reporting capabilities – Once marketers have identified success metrics for each campaign objective, they must ensure proper reporting processes are in place to track progress towards success. Consider utilizing a social ads management tool that tracks on-Facebook (social) engagement metrics, off-Facebook (website) conversions, sales, ROI, and Lifetime Value in a single interface. Doing so will allow the marketer to accurately determine the ROI of their Facebook program and budget accordingly.

Once business goals are confirmed, develop an action plan that allows other higher-level stakeholders and media managers to understand how proposed Facebook investments and targeting strategies align with other company initiatives. This plan will also serve as a guide for Facebook managers to implement and optimize new campaigns. A sample action plan can be found below:

FB Marketing Objective and Guideline

When creating the action plan, consider a mix of ads (voice of your business), stories (voice of your customers), or a combination of both to communicate the message to your audience. In short, ads are generally best for targeting a broad audience on Facebook to promote content or targetingbrand assets to build awareness and/or acquire new fans. Conversely, sponsored stories allow Facebook users to act as brand ambassadors by promoting their engagements with your brand to their friends.