Are you new to Facebook ads or just getting started with Home Value Leads? One of the fastest and most efficient ways of generating quick leads with Home Value Leads is through Facebook ads, but they can be a little tricky to figure out. One of the most common question we get via email as well as via our private Facebook group is “My Facebook ad has been running for 2 days and I haven’t gotten a single lead. Why isn’t my Facebook ad working?” If you are the video type, you are in luck because I’ve done a video where I explain exactly how we look at Facebook ads to determine where the problem is. Can’t watch a video right now? Scroll down a bit more and I’ll explain it all to you.
Facebook Ad Statistics: By The Numbers
Here we have a Facebook ad that has been running for a week or so. I have blurred out some of the information for privacy reasons. This is the information we need when we ask you for a screen shot and this is exactly what we are looking at, by the numbers:
1) Ad Copy – Is the ad copy effective and is there an actual call to action? Is the photo used for the ad something that is likely to attract attention? Is the subtext something that will encourage a user to click on it?
2) Potential Audience – The potential audience should ideally be between 5,000 and 15,000 people. If you live in a large city, you may have a higher audience and be ok. If you are targeting less than 2,000 people, your ad probably isn’t going to gain much traction. On the flip side, if you are targeting 150,000 people, then you aren’t keeping your ad specific enough to be personal for the person seeing it, which means they aren’t going to click on it.
3) Location – You should almost ALWAYS select a single city for your targeting. If you live in a large city, you may want to target a single zip code or a couple of zip codes within that city. Facebook wants as much money from you as they can and they will automatically add a radius around your selected city. TURN THAT OFF. This is probably the #1 most common problem that we see.
4) Demographic Targeting – You probably want to keep this as simple as possible, since the more items you target means Facebook is going to charge you more. If you can get your ad targeted well through a single city or a couple zip codes, you shouldn’t need much targeting. For the majority of the ads that I place, I simply target “homeowners” and nothing more. Other targeting options that you can consider depending on your area includes education level (college grads or higher) and parents (all) seem to both be popular and effective targeting. Just remember that you want your potential audience (refer back to number 2) between about 5,000 and 15,000 people.
5) Ad Reach – This tells you if your ad is actually getting delivered or not. You can have the most effective ad ever created, but if it’s not getting shown to people, it won’t convert. If your ad reach is super low, it may be because your budget is too low.
6) Frequency – Has your ad been doing fine and then all of a sudden you aren’t getting any more leads? Frequency may be an issue. I always use the analogy of watching a football game or TV show and you see the same damn commercial at every commercial break. Even if it is a great commercial, after the 5th time you see it, it becomes more annoying than anything. We refer to this as your ad becoming “stale” which usually happens after a week or two. If your frequency is higher than 3, it is time to change your ad. Change the photo, change up the words, and publish a new ad. You will often find that the new ad magically starts working again.
7) Click-Through Rate (CTR) – This tells you how many people that saw your ad actually clicked on it. If people aren’t clicking on your ad, it might be because it isn’t personal enough to them or because they have seen it way too many times. You should aim for a CTR of greater than 2, although some people manage to get CTRs of over 5% which is just crazy effective. If your CTR is less than 2, you need to consider changing your ad. If your CTR is less than 1, you have serious problems and need to do something ASAP!
8) Max Bid – The Max Bid is what you put in when setting up your ad. You either selected Optimized Bid per Click or Cost Per Click. We always recommend cost per click, because we don’t want Facebook to be in charge of how much money we spend if we aren’t getting clicks. We use this number to determine if your bid is too low by looking at #9.
9) Average Price Per Click – You may notice that there is another “Cost” column in between website clicks and reach. This is how much your ad is costing per WEBSITE click, but not the average price per click. You see, Facebook charges for ANY click on your ad, not just clicks to your website. If they click over to your business page, “like” the post, comment on it, or share it, those are all considered clicks and Facebook charges you for that. What we are looking for here is how close your max bid (see #8 above) is to your average price per click. If your average price per click and your max bid are very close, then you probably need to increase your max bid because your ad views are being limited by Facebook.
10) Conversion Tracking – Conversion tracking is one of the things that makes looking at your statistics quite simple. Facebook allows you to track exactly how effective an ad is by tracking the conversions from the ad. If you are only running ONE ad, this isn’t such a big deal because you can just look at your dashboard and see how many leads you have generated since you started the ad. However, if you are running multiple ads on Facebook or have multiple drivers of traffic such as your blog, website, postcards, flyers, etc, then it becomes much more difficult to know exactly where those conversions are coming from. Conversion tracking is as simple as putting a little bit of code into the general settings are of your HVL dashboard.
Facebook ads can be tricky to figure out, but once you know what you are looking for, it is easy to diagnose what the problem is and where you need to make changes. Still having problems? You can always ask in the private Facebook group, or just shoot me an email.