Facebook PPC Advertising: What’s Hot and What’s Not

Did you know there are more than 750 million active Facebook users, and people spend over 700 billion minutes per month on Facebook? With the community growing as much as it has, Facebook advertising is growing exponentially every single day. According to The Financial Times, the price of advertising on Facebook has increased 74% since last year! With this drastic increase in average cost per click, more and more competition appears to be entering the Facebook space. Is your company missing out?

At Fathom, we have managed multiple Facebook PPC advertising campaigns and have discovered some very good and very bad elements.

Let’s face it: Google AdWords is becoming more and more saturated with competition and your costs are going up. You’re working eagerly to try and optimize your quality score, find new keywords to bid on, test new landing pages, etc., but costs continue to rise. You might want to branch out and try Facebook PPC Advertising to compare ROI.

Facebook PPC advertising offers many benefits over Google AdWords:

  • Demographic targeting: Facebook PPC gives you an extremely targeted way to reach your audience which does not involve bidding on individual keywords like Google
  • Reach: According to Facebook.com, 70% of users are from outside of the U.S. This just puts into perspective that Facebook is just as popular out of the United States as inside of the US! No worries, though, if you want to reach a small audience, such as 10 miles within a DMA or a specific zip code, this can be done as well within Facebook.
  • Brand awareness: While you can definitely generate leads and sales on Facebook, the main benefit from advertising on it is easy building of brand awareness. By targeting friends of fans, you can easily double or triple your amount of “likes” within weeks. Then the key is to continue to re-engage with these fans by promoting specials, news, and updates on your wall.
  • Sales and lead-generation: Generating leads and sales on Facebook ads can be quite tricky. If you are trying to generate more sales, be sure to offer specials exclusively to Facebook members and track it separately than other marketing efforts. As far as generating leads, consider building a landing page within Facebook and testing it vs. sending users to a landing page with an external URL (outside facebook.com).

Just like any other pay-per-click advertising platform, Facebook could help improve your ROI by fixing several issues:

  • Setting monthly budgets: Facebook ads currently only lets you set a daily budget, as opposed to a monthly budget. This can be an issue if you happen to be having a really good day as far as clicks go, and you run out of budget. If you were able to have your budget set at a monthly level, you would avoid potentially missing out on clicks, leads, or sales.
  • Using ad scheduling: Unlike Google AdWords or Microsoft Adcenter, the Facebook advertising platform does not allow you to  automatically turn off ads on certain days or during certain times. This is unfortunate, as you could be exhausting your budget very early on in the mornings when your best conversion rate happens to be later on in the day.
  • Conversion tracking: It is impossible to tell which campaign/ad converts better within Facebook’s interface. In order to track conversions, you must use a 3rd-party tracking system, such as Google Analytics.
  • A/B testing of images and ads within same campaign: Unlike Google, Adcenter, or even LinkedIn advertising, you aren’t able to a/b test ads or landing pages within the same campaign. You have to duplicate the campaign and targeting in order to test different elements,  which can lead to a mess of campaigns that are difficult to manage.


Get a deeper look at advertising wisely on Facebook with our Facebook advertising white paper.

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