What is Facebook Advertising?

Chapter 2

Setting up Facebook Advertising

This chapter will take you through the Facebook ad creation process. We’re going to discuss the step by step process of setting up and optimizing Facebook ad campaigns from scratch and also showcase how to run a remarketing campaign in Facebook.

How to set up your Facebook ad campaign

To begin running your Facebook advertising campaigns, there are a few things you need:

    1. A business goal: The business goal defines why you’re running ads.
    2. Understanding of your target audience: Do some audience research to find out who your target audience is, so you can choose the right targeting options when the time comes.
    3. A budget: Figure out a budget for the ads.
    4. Ad photos/videos: Capture the photos or videos you want to feature in your Facebook ads.

Facebook’s advertising campaigns are three tiered and have the following structure:

1. Campaign: Campaigns are at the highest level and can include several ad sets, but every campaign should have a unique campaign objective. If you have multiple campaign objectives, such as increasing free trial signups, and getting more downloads for an ebook, it would be best to run two separate Facebook campaigns.
2. Ad set: Ad sets include multiple ads and have unique audience targeting, budget, schedule, and ad placements. You can use an ad set for Facebook A/B testing.
3. Ad: The ad is the smallest unit of the campaign. Ads have separate URLs, image, and copy.

This section of the chapter will focus on the step-by-step procedure you need to follow to create and optimize paid advertising campaigns on Facebook.

Here’s an overview of the steps involved in launching a Facebook ad campaign:

Step 1: Select campaign objective for Facebook Ads

When you set goals for your Facebook Ads, you should know what you’re trying to achieve with the ads.

Setting goals before your ads go live helps measure their success. For example, if the goal of your Facebook ad campaign is to increase ebook downloads, you can set the goal of 200 downloads for the first month.

Having a concrete goal makes measuring success simple.

Facebook’s Ads Manager offers the following campaign objectives:

  1. Brand Awareness
  2. Local Awareness
  3. Reach
  4. Traffic
  5. Engagement
  6. All installs
  7. Video views
  8. Lead generation
  9. Conversions
  10. Product catalog sales
  11. Store visits

Facebook categorizes business objectives in the following three categories:

1. Awareness

The purpose of running awareness campaigns is to generate interest in a particular offer, or your product/service in general. You can reach your target audience in the awareness stage with the help of:

  1. Boosting posts
  2. Promoting your page
  3. Reaching out to people located near your business
  4. Increasing brand awareness
  5. Increasing your audience reach

2. Consideration

If your target audience is already aware of what your business does, you can select Consideration as your marketing objective. The objective helps target audience consider your brand as a possible solution to their problem, and persuade them to learn more information about it.
You can use the Consideration objective to:

  1. Get app installs
  2. Get video views
  3. Collect leads for your business
  4. Raise attendance for your event

3. Conversion

The Conversion objective includes objectives that encourage people interested in your products/service to purchase or use your product, with the help of ads. Make use of the Conversion marketing objective to:

  1. Increase conversions on your landing page
  2. Increase engagement in your app
  3. Get people to claim your offer
  4. Promote a specific product or a catalog
  5. Get people to visit your shops

When you set your campaign objective you’re essentially helping Facebook determine the campaign’s ad formats and bidding options. The social network auto-optimizes your campaigns based on the campaign objective you choose.

Step 2: Assign a name to your ad campaign

After selecting the campaign objective Facebook asks you to name the campaign:

If you’re running multiple campaigns on Facebook, add a date next to your campaign name, so you can easily navigate between different campaigns.

Step 3: Set up audience targeting

If you’ve run previous Facebook ad campaigns, you have the option of using a saved audience. If this is your first Facebook Ad campaign you can simply create a new Facebook target audience.

Facebook also gives you the option of targeting ads at Custom Audiences – people who already know your business. You can create a Custom Audience list to show ads to users who are already in your contacts, which includes your website visitors or current app users.

You can customize audience based on:

  1. Location
  2. Age
  3. Gender
  4. Languages

You can also choose the option of detailed targeting, this allows you to refine the group of people who see your ads. You can add additional demographic information, interests, and behaviors.

The detail targeting options can be based on:

  1. What users share on their timeline
  2. What apps they use
  3. What ads they click
  4. What pages they interact with
  5. What activities they engage in, on and off Facebook. Activities such as device usage, purchase behavior, purchase intent, travel preferences etc.
  6. Which mobile device they use, and the speed of their internet connection.

You can get even more laser focused with your targeting options by adding criteria to the ‘Include people’ and ‘Exclude people’ option.

After you’ve selected the criteria, Facebook will automatically include or exclude people who meet at least one of the added criteria.

For example, let’s say you’re promoting an app that features fitness exercises, and you add the following criteria to the ‘Include people’ option:

  1. Users who follow ‘fitness exercise’ pages
  2. Users who ‘follow healthy food and workout’ pages

A user who follows fitness pages, but doesn’t follow workout pages, will be included in your audience and will get to see your ad.
If you want to include or exclude people who meet all of your criteria, you can use the audience narrowing action.

This is how it works, using the same example:

  1. Include people who follow healthy food pages
  2. Click ‘Narrow Audience’
  3. Include people who follow fitness exercise and workout pages
  4. Click ‘Narrow Audience’

By selecting the narrow audience option, your audience will now only include people who follow healthy food pages and exercise and workout pages.

While narrowing audience lists, be careful not to make it too specific, as doing that can lead to an audience that’s too small to be effective.

Facebook automatically optimizes the target audience you create, so you don’t have worry too much about refining your audience further.

Step 4: Set ad placement

Where your ad appears on Facebook is called the ad placement:

Facebook ads can appear as sponsored posts between regular posts, they can also appear on the right-side column across Facebook.
Facebook ads can also appear in Instant Articles within the Facebook mobile app and Messenger, another ad placement is in-stream videos when your ads appear as short videos in both Live Video and Video on Demand.

The campaign objective you selected in step 1 determines which ad placements are available to you:

Facebook pre-selects and recommends using the ‘Automatic Placement’ option.

Facebook’s automatic ad placement option shows your ads in the placements they’re likely to perform best for the selected audience. Automatic Facebook ad placements may include Facebook, Instagram, Audience Network and Messenger.

Facebook’s newest ad placement ‘Ads in Messenger Home’ lets you run ads that people will see in the Home tab of their Messenger mobile app.

You can also select the ‘Edit Placements’ option and remove ad placements you don’t prefer. However, this reduces the number of people who see ads, making it harder to meet your marketing goals.

Step 5: Selecting Budget & Schedule

As the title suggests this step involves the selection of a budget, schedule of your ads, optimization for ad delivery, bid amount, and ad delivery type:

Budget

The budget is the amount you’re willing to pay to run your ads. Budgets are a cost control tool, helping control overall spending for an ad set in the same way bids help control cost per result.

When you’re setting a budget you’re not buying ads or the ability to show ads to your target audience. You’re just

letting Facebook know how much you’re willing to spend on ads.

The budget you select is different from the amount spent.

Also, each ad set has a separate budget, this is important if you have more than one active ad set.
There are two options available in terms of budget selection:

Daily Budgets: The daily budget is the average amount you’re willing to spend on an ad set per day. Because the amount you’re setting is an average amount, the amount actually spent daily may vary for different days depending on ad opportunities Facebook sees for better results. For example, if you set a daily budget of $30, somedays Facebook may spend $14, and somedays it may spend $7. Facebook spends more of your daily budget on a day with more opportunities for results and less on a day there are fewer opportunities.

Lifetime Budgets: The lifetime budget is the amount you’re willing to spend over the entire duration of your ad set. If you select the ‘Standard Delivery’ option, Facebook spends the lifetime budget evenly over the runtime of your ad set. Similar to daily budgets, Facebook chooses to spend varying amounts on different days depending on ad opportunities. However, if you choose the ‘Accelerated Delivery’ option and ‘Lifetime Budget’, the budget could all be spent in less than a day.

Once you’ve chosen your budget, don’t change it too frequently as doing this may negatively affect your ad performance. This happens because Facebook has to re-learn how to best deliver your ads so you get the most out of your newly selected budget.

Schedule

The Schedule determines whether the ad set will run continuously from a particular selected date, or within a selected date range. If you’ve selected a lifetime budget, the ad set must have an end date. Doing this allows Facebook to spend the selected budget, and pace the ad set delivery evenly across the ad set’s lifetime.

Whereas with a daily budget, you don’t have to set an end date, Facebook will keep delivering the ad set until you pause the campaign or reach the account’s spending limit.

Optimization for ad delivery

The optimization for ad delivery option allows you to choose how you want Facebook to target your audience based on what you’re trying to achieve. The option you select affects who sees your ads, to get you the best results at the lowest cost possible.

These are the options available:

For example, with ‘Link Clicks’, ads are targeted at people who are most likely to click your ads.

Bids

The bid is the monetary value associated with each ad set, the amount represents how much you’re willing to pay for the ‘Optimization for Ad Delivery’ option you choose.

Your bids are combined with two other factors – estimated action rates and ad quality and relevance.

The combination of these three factors are entered into Facebook’s ad auctions, which ultimately determines which advertisers get to show ads.

So, the ad that wins the auction and gets shown is the one with the highest total value for the combination of the three factors.

1. Advertiser bid: When you select the manual bid amount, you enter a bid based on what results are worth to you – this depends on the optimization for ad delivery selected. So, you represent how much you value the result your ad set is optimized for through the bid. It is best to bid your true value or higher for best results.

2. Estimated action rates: Every ad set is optimized for an action. Facebook estimates action rates based on how likely they think the audience is likely to take that action. The estimated action rate determines the difference between an ad being generally relevant to someone’s interests and it being likely to convince them to take the action you’re optimizing for. Facebook bases estimates on target audience’s past actions, and your ad’s historical performance data.

3. Ad quality and relevance: Facebook calculates ad quality and relevance based on how interested your target audience will be in seeing the ad in terms of its overall quality and specific relevance. An ad that has received lots of negative feedback will decrease its total value. Whereas, if the target audience is interested in the ad it will increase the ad’s total value. Check your ad’s relevance score to see how audiences are reacting to your ad. The relevance score, is a number between 1 and 10, and the positive and negative feedback of an ad will be shown as a rating of low, medium and high:

The relevance score, is a relative number, which means that the value only measures how relevant your ad is compared to other ads targeting the same audience.

To determine the winner of an ad auction, Facebook standardizes the advertiser bid, estimated action rates, and ad quality and relevance to account for different optimization goals, it then combines them into a total value.

The ad with the highest total value wins and gets shown to audiences.

There are two bidding options available:

1. Automatic: Facebook sets the bid that helps get the most results at the best price possible.
2. Manual: You enter a bid depending on what results are worth to you.

Facebook recommends choosing the ‘Automatic’ bidding option.

The ‘When You Get Charged’ option determines when you pay for the ad. You can choose to pay whenever a user clicks the ad, or when a user clicks the ad’s video and watches up to a certain point.

The charge choice is different than the Optimization for Ad Delivery choice, the latter lets Facebook know which results you value (whether that’s clicks or impressions).

Facebook’s delivery system tries to show ads to the audience who are likely to get you those results. The optimization for ad delivery choice you use, in combination with your bid has a major effect on your average cost per result.

Ad Scheduling

Facebook lets you schedule ads for specific hours and days of the week. You can choose to run ads all the time, or choose to run ads on a specific schedule.

One thing to consider in ad scheduling is rotating ads for audiences, so if you haven’t convinced them with one ad, there is a chance you will with another. You should also set a frequency cap, so the same person doesn’t see identical ads multiple times, which causes banner blindness.

Delivery Type

The delivery type determines how Facebook spends your budget. There are two options to consider:

    1. Standard Delivery: The ads are delivered, and your budget is spent evenly over the duration of the campaign – this is known as pacing. Pacing allows you to get the most out of your budget by discounting your bid when it’s appropriate.

    2. Accelerated Delivery: The ads are delivered, and the budget is spent as quickly as your target audience and bid allows. Which means Facebook prioritizes speed over efficiency when choosing who to show your ads to, and when. There’s no pacing in accelerated delivery, so there’s a chance your lifetime budget can be spent in less than a day and the daily budget can be spent in only an hour.

Step 6: Create your ad

Select the preferred Facebook ad format and insert the ad copy and images to create your Facebook ad.
You can create a new ad, or use an existing post:

Ad formats

You can choose from the following ad formats:

Carousel: Create an ad with 2 or more scrollable images or video.
Single image: Create up to 6 ads with one image each at no extra charge.
Single video: Create an ad with one video.
Slideshow: Create a looping video ad with up to 10 images.
Collection: Feature a collection of items that open into a full screen mobile experience.

Add images

You can create 6 ads at once by uploading multiple images. Facebook recommends the following image specifications:

  • 1200 X 628 recommended image size
  • 1.91:1 recommended image ratio

Facebook ads that contain images with minimum to no image text cost less and reach more people than ads that use images with text.

This is the preferred image text ratio:

Destination

The ‘Destination’ is the page where a user is directed to after the ad click.
Always connect your Facebook ad to a relevant landing page, as this results in an optimized post-click experience for the visitor which increases the chance of conversions.
Ad text

Write a brief and to the point ad headline so the target audience immediately knows what your ad is about. The character limit for the ad headline is 40, you can add more characters but your headline may cut off when audiences see your ad in certain ad placements.

The ad text should clearly tell audiences what you’re promoting through the ad.

Call to Action

Selecting a Call to Action enables you to choose the action you want audiences to take when they see the ad.

Facebook offers the following CTA button copy options:

  1. No button
  2. Download
  3. Get Showtimes
  4. Learn More
  5. Listen Now
  6. Send Message
  7. See Menu
  8. Shop Now
  9. Sign Up
  10. Watch More
  11. Request Time
  12. Apply Now
  13. Book Now
  14. Contact Us

News feed link description

The news feed link description is the additional text used to emphasize to audiences why they should click your ad. The news feed link description will not appear in all ad placements.

Use Conversion tracking to see ad performance

Conversion tracking helps measure the ROI of Facebook ads by reporting on the actions your target actions takes on the ad. The actions can range from page likes to app installs.

The results of the conversion tracking are available in the Ads Manager, along with the ad performance data.

You have three options to select from for conversion tracking:

1. Facebook Pixel: The Facebook Pixel is an analytics tool that measures the effectiveness of your ads. The Facebook Pixel can be used to understand the actions visitors are taking on your website or landing page and reach the audiences you care about. You can set up the Facebook Pixel by placing the pixel code on the header of your website. When a visitor takes an action, the pixel is triggered and reports an action. The Facebook Pixel is used for running remarketing campaigns in Facebook.

2. App Events: Adding app events lets you add events to your product to view analytics, measure ad performance, and build audiences for ad targeting.

3. Offline Events: Upload offline sales and interaction data to measure ad conversions, then build audiences for ad targeting based on those transactions.

That’s it, you now know the exact steps you need to take to create an optimized Facebook ad campaign.

In addition to running awareness and consideration campaigns, Facebook ads can also be used to create and launch remarketing campaigns to help get back visitors who have left your website or landing page without converting.

Before we dive into the process of creating remarketing (retargeting) campaigns on Facebook, let’s look at the definition of remarketing.

What is Remarketing?

Remarketing campaigns allow you to call back visitors who have left your website or landing page without clicking the CTA button. Persuading them to revisit your offer when they need it.

According to Marketo, 96% of visitors that come to your website are not ready to buy. That’s a huge chunk of website visitors that you’re essentially losing out on, remarketing campaigns allow you to target these visitors with specific ads with the primary goal of convincing them to convert for your offer.

With remarketing campaigns, you’re reminding and convincing visitors that weren’t initially ready to convert to give your offer another chance.

Setting up Remarketing Campaigns in Facebook

In the Facebook Ads Manager select the “Custom Audiences” option for remarketing, as this allows you to reach out to visitors who have already been on your website with relevant ads.

From the list of Custom Audiences select the “Website Traffic” option — this lets you create a list of people who have visited your website or viewed specific web pages:

Choose the audience you want to target your remarketing ads at from the drop-down menu in the “Website Traffic” tab.

These are the given audience options:

  1. Anyone who visits your website
  2. People who visit specific pages
  3. People visiting specific pages but not others
  4. People who haven’t visited in a certain amount of time

Custom combination

Select a target date range for each audience option you select. 30 days is the default date range, however, you can increase the duration depending on the lifecycle of your remarketing campaign.

After you’ve selected audience options, Facebook gives you a pixel tracking code known as the Facebook Pixel that you place on your website or landing page in to track visitors who come to your website:

Facebook remarketing campaigns have the following advantages:

  • Track Conversions: The Facebook Pixel lets you gather data on how people interact with other websites after viewing yours. You can track customer behavior across different devices, which helps you refine your ad strategy and run better, more informed campaigns.
  • Serve Dynamic Ads: You can serve visitors ads that carry specific information about their website visit. Personalized ads have a higher click-through rate since they are created specifically for the visitor.
  • Create Lookalike Audiences: You can run remarketing campaigns for Lookalike Audiences (people who have similar interests and demographics to visitors who have visited your website). This can help you expand your visitor base.
  • Use Custom Conversions: Custom conversions use URL rules based on specific URLS or URL keywords. For example, instead of tracking a standard event, or all visits to a certain webpage, you can choose to track visitors for a specific section of a page. This helps you create further segments of your audience and create more targeted ads:

Facebook remarketing campaigns allow you to track conversions on Facebook ads and optimize ads based on the data that you gather from your campaigns.

You can create a targeted audience for future ads based on the data you’ve collected and remarket successfully to qualified and prospective leads.

The bonus point of using the Facebook Pixel for remarketing campaigns is that it can also be used to serve remarketing ads to your visitors on Instagram.

In fact, you can also use your Facebook ads manager to create an ad campaign on Instagram.

Here’s what you have to do.

Creating Instagram ads with Facebook Ads Manager

Using Facebook Ads Manager to create Instagram ads allows you run a paid campaign on Instagram, even if you don’t have an Instagram account allowing you to tap into the network’s growing user base.

Just choose a Facebook page to be associated with your ad campaign. This Facebook page then represents your business for Instagram ads.

To create Instagram ads with Facebook’s Ads Manager, do the following:

  1. Choose a marketing objective
  2. Name your ad campaign
  3. Define audience, placements, budget, and schedule
  4. Create the ad

When you create Instagram ads with the Ads Manager rather than within the app itself you can do much more with the Ads Manager.

Creating Instagram ads is very similar to creating Facebook ads.

Step 1: Choose a marketing objective

There are a total of 11 objectives in the Facebook Ads Manager:

Out of the 11 only 8 are available for Instagram ads:

    1. Brand awareness: Create awareness for your brand by reaching audiences more likely to pay attention to your ads.
    2. Reach: Maximize how many users see your Instagram ads and how often they see them through this marketing objective. Contrary to the brand awareness objective, with reach your ads are seen by people who might not be interested in your ads.
    3. Traffic: Send audiences to your website or to the app store. However, it’s ideal to send traffic to a dedicated landing page.
    4. Engagement: Get more people to view and engage with your post. You can choose the type of engagement you prefer, such as page likes, event response, and offer claims etc.
    5. App installs: Send users to the app store where they can download your app.
    6. Video views: Promote a video to your audience.
    7. Lead generation: Collect lead information from your target audience through lead ads. One thing to note is that Facebook lead ads and Instagram lead ads have a few differences. For example, not all pre-filled form fields are supported on Instagram. Only email, full name, phone number, and gender fields are currently supported by the network. Also, Instagram lead ads require users to click the ad and go to another page to add in their information, while with Facebook lead ads they only need to scroll down and not click. Instagram lead ads also need to fulfill Instagram’s requirement for lead ads, which are different from Facebook’s requirements.
    8. Conversions: You can get users to take action on your landing page, such as signing up for a free trial or registering for a webinar. You can also use the Facebook Pixel or app events to track and measure conversions.

Step 2: Define your ad audience

Facebook gives you the opportunity to target a very specific set of people. You can create a precise audience pool by combining factors that make up your target audience:

    1. Location: Enter global regions, local areas, countries, postal codes or addresses to include people who make up your target audience and exclude people who don’t.
    2. Age: Select a range of age – the widest set of age range is 13-65+.
    3. Gender: Choose to show ads to every gender, or just men or women depending on the product/service.
    4. Languages: You can leave this option blank, unless the target audience uses a language that’s not common in the locations you’ve selected.
    5. Demographics: Include or exclude people based on their employment, education, lifestyle, and household.
    6. Interests: Target people based on their interests, their Facebook activities, the pages they liked, and interacted with.
    7. Behaviors: Target people based on their buying intent, device usage, activities etc.
    8. Connections: Target users who are connected with your pages or your app.

Step 3: Choose ad placements

By default Facebook selects both Facebook and Instagram ad placements. If you only want to run your ads on Instagram, simply click ‘Edit Placements’ and deselect ‘Facebook’ from the placement options:

You can also use the advanced options to pick out the mobile devices and operating systems (iOS or Android) you want the ads to appear for. This is extremely helpful if you’re promoting a mobile app, because if you’re promoting a Google app, selecting ‘Android devices only’ will narrow the audience pool.

Step 4: Set a budget and schedule

Setting a budget determines how much you want to spend on the ad, and how long you want the ads to run for:

You can select a lifetime budget or a daily budget.

The ad schedule determines if your ads will run continuously until you pause them or the lifetime budget runs out. You can select a start date and an end date. You determine how much your Instagram ad costs.

You can pause the campaign at any time and adjust the budget as you prefer.

Step 5: Create your ad

There are 6 ad formats to choose from for your Instagram ads:

Use the following formats to create Instagram ads:

    1. Carousel: the ad has two or more scrollable images or videos.
    2. Single image: you can create up to 6 ads with one image without any extra cost.
    3. Single video: the ad has one video.
    4. Slideshow: the ad has a looping video with up to 10 images.

You can also launch Instagram Stories ads:


After selecting an ad format, you need add a ‘Destination’.

The Destination is the page you want the visitor to be taken to post-click. You should always connect your Instagram ads with relevant landing pages instead of a busy homepage or a cluttered product page, because landing pages increase the probability of conversions.

After the ‘Destination’, add a headline, ad text and a call to action button. The characters available for your headline and ad text vary depending on the ad format you’ve chosen.

When you create Facebook ad campaigns, whether for remarketing or other marketing goals, you have at your disposal one of the biggest pools of social audiences, along with laser-focused targeting options, helping you achieve campaign goals and increasing ROI.

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