Three Variables of Facebook Ads

Today, I want to share with you the key to making cost-effective ads on Facebook.

But first… 

Did you know what a martial arts school usually makes per month?

Around $10,000.

That’s $120,000 per year.

Now, it may not sound like much to us in the agency world. 

But would you be more impressed knowing the same business could reach half a million in revenue… In under three years?

There’s one way to make that happen:

Using social media and running better Facebook ads.

Here’s the thing…

This kind of boost in revenue can happen for any business – yes, including your agency – across any sector. After all, social media is a powerful tool and some of the strategies never change.

Yet, the problem is that this can mean a dent in the budget for many businesses.

With that said, there are three variables to consider if you want to create and run better, more cost-efficient Facebook ads.

• Location
• Assets
• Organic

Here’s what these mean variables mean.

Location is the place from where you’re advertising. It’s important because it can help you determine what kind of costs you get per lead.

You can think of Facebook ads as an auction where people compete for the attention of particular audiences. And if you’re in a location where more people are vying for the attention of the audience, the more you need to spend on your ads to get the edge.

Keep in mind that you can’t control your location and how the ads manager can help out. But you have limited control over your assets – the images and videos used in your ads.

Your organic strategy is also something you can control. And the stronger your organic strategy, the stronger your digital footprint becomes. Facebook even recognizes this in its ads manager algorithm and rewards your ad account.

So, why is all of this important?

Imagine that you could get some clients at $2 per lead. But you also have leads that cost you $42 each. Running more efficient ads would help you cut down on your advertising costs and expand your reach.

And since you can’t control the location variable, you’re down to the two variables you can work with to make it happen – assets and organic strategy.

If you can level up your assets and organic strategy, Facebook’s ads manager will recognize this. The process is called value stacking and it will enable you to convert better.