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How do I make Facebook (and Instagram) Ads profitable?

How do I make Facebook (and Instagram) Ads profitable?

Facebook Advertising is now a very popular method for (online) entrepreneurs to reach their target group and generate sales. Thousands of companies advertise via the platform that is also linked to Instagram. So your ads will show on both Facebook and Instagram if you have set that up. But where do you start and how do these ads become profitable?

For starters, there are a few basic necessities to set up your campaigns the right way.

Facebook Checklist:

  1. Create an advertising account and a business page.

  2. Make sure you have a neat, easy and reliable landing page (or website).

  3. Install the Facebook pixel on your website. This will ultimately ensure that everything that an advertisement yields is properly registered and that these registrations become valuable to get to know your target group better. 

  4. Set your goal. What do you want to achieve with the advertisements? Do you want brand awareness or do you want to focus on conversions? Determine this before you start, so that you know which Facebook objective you need to set up the right campaign.

  5. Determine what you can spend on ads and what needs to come in next to break even.

Drafting your first campaign

Then you can start drawing up your first campaign. Our tip: test. to test. to test. There are many different ways to test. In this blog we mainly talk about testing between target groups in Facebook.

Set up different target groups within your campaign based on demographics, geographic data, interests, behavior and more (use pixel data for this too!). Give them all the same budget per day. After a few days you can often see which target groups are performing best within your campaign. At that point you can already start scaling up your ads. There are generally two ways to scale up: horizontal and vertical.

Scale up ads horizontally

The name says it all: you scale up your advertisements in width. You test more and more target groups and you eventually gain a lot of insights about target groups that can be valuable for your company. You then set the less valuable target groups to inactive, whereby you move the daily budget of these less valuable target groups to the target groups that are valuable. From then on you will scale up vertically.

Scale up vertical ads

Scaling up vertically actually means increasing the budget of your most profitable and valuable ad (sets). In the horizontal upscaling phase, you found out which target groups deliver the best results for your company. Then you will see to what extent you can increase the daily budget that you spend on these target groups. Do this step by step (with a maximum of 20-30% per week) and see with which budget you can achieve optimal results.

Think out-of-the-box

Repeat this method on a regular basis to keep gaining new insights. Dare to think out-of-the-box and do a lot of research on the internet. Do you have the right target groups? Then test different creatives (videos or photos, a carousel, etc.) to see what works best for you. Good luck! 

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