Advertising on Facebook can be a powerful tool for businesses looking to reach new customers and grow their brand. With over 2 billion monthly active users, Facebook offers a large audience for advertisers to target. One of the biggest benefits of advertising on Facebook is the ability to target specific demographics, interests and behaviours. This allows you to reach the ideal audience with precision, resulting in higher conversion rates and a better return on investment.
You've most likely heard about the huge potential this can have for your business. This is absolutely correct. Social media collects and stores data about each individual consumer using the information that each user shares and creates through their interactions on the medium. Because of this, advertisers can proactively select, personalise and optimise ads through detailed tracking so that the ads effectively reach the intended audience.
A good return on ad spend depends on various factors such as your target audience, marketing campaign, etc. However, it is considered reasonable to get 3x to 4x ROAS for Facebook ads - meaning that you have an excess return of 3 to 4 dollars per dollar spent on advertising. If your results are less than this average ratio, your ads are not effective and you need to change your strategy.