The first thing any beginner should do before jumping into Facebook advertising is to understand the most important metrics to track. Knowing these and how they can affect your campaign can be the difference between making your ads a success or a failure.
You’ll want to start with thinking about the price of the product you intend to sell. This is important as it impacts heavily on your ad spending. In general, the higher the price of your product, the more money you can invest to acquire a lead or a customer.
An expensive product gives you more leeway when it comes to ad spending. Imagine selling a $150 product as opposed to a lower priced one. We could spend up to $150 on an ad, get a ton of clicks, and even if only a single person buys, you still at least break even. Can you imagine the returns if 2 or more people convert?
Sales Funnel Conversion Points
Secondly, you should think about your Sales Funnel Conversion Points. A sales funnel is basically the process by which you lead customers toward buying your product.
A basic sales funnel begins with the Awareness Stage, letting your target audience become aware of the problem or solution. Then, you get them to the Interest Phase, where they start doing research on products. Then they evaluate your competitors, make a decision and hopefully choose your product.
The most successful Facebook advertisers understand which points they have to optimize in order for their campaign to be successful. And this requires extensive knowledge of both their product and their target audience.
Let me give an example. Imagine selling a product for a relatively unknown problem. In this scenario, you’d have to invest a lot more during the Awareness Stage to make sure enough people are aware that not only a problem exists, but that a solution also exists and that solution is your product. But at the same time, if the problem is obscure enough, your solution may be the only one on the market, and hence you don't need to worry so much about competitors.
If we take the flip side and sell a product to a widely known problem, you may not even need an Awareness Stage. However, you’d have to dig deep during the Evaluation Stage to differentiate your solution from the tons of competitors that are out there.
Funnel Conversion Rates
Last but not least, you should look at your Funnel Conversion Rates. If you have some data from a previous campaign, then great. But even if you’re just starting out and don’t have any data, you should still make projections so that at the very least you have an idea of what sort of numbers are necessary in order for your Facebook campaign to be a success. Information is the key to all ad campaigns, and estimating and projecting your Funnel Conversion Rates isn’t as hard as it looks.