Why Does Everyone Lose Money on Facebook Advertising

If you haven’t tried Facebook ads already and you know a lot of people who have, you probably don’t want to. They’re uncharted waters, and many before you have failed. At least once or twice, sometimes even from business professionals, you’ve probably heard plain and simple that Facebook ads don’t work. Everyone who tries just loses their money with minimal results. First, let’s dispel that myth. Not everyone fails on Facebook marketing. It is a highly effective platform, but only if you succeed in utilizing it’s tools properly.

1. They Don’t Test Their Audiences

Audience testing is going to be the very first step you use to build on your Facebook ad campaign success. The target audience you choose through Facebook will vary based on your industry and business type, and who you’re trying to reach with your product. Facebook provides many factors to consider when selecting an audience for your first ad:

-Demographics-Based on demographic factors like age, gender, job title, level of education, and more.
-Interests-Audiences hobbies, interests, and likes
-Behaviors-Behavior patterns typically followed like purchases, website visits, and using a certain device

When you first begin figuring out your audience type it will be anything but easy. It may involve some guesswork and gouging your competitors. Audience testing is the crucial element for long-term success in targeting.

How to Test Your Audience

To test your audience, you’ll need to create several separate ad sets. In each one choose your targeting factors. For the best gauge of success, create at least 8 to 10 different sets, and monitor each one’s performance using your ads manager.

Over time as you monitor the performance of each ad, look and see which ones are performing best, based on your goals. Are your target audiences visiting your page, engaging in your posts, or finally making purchases?

Keep the audiences that perform best.

2. They Don’t Utilize Lookalikes and Customs

As some of your ads begin to perform, entering the ads manager will reveal that you can actually create custom and lookalike audiences. To do this, simply visit the audiences tab in your Facebook ads manager. From there, you can select from custom or lookalike audiences.

Custom audiences are more or less “warm audiences” who have already performed some action on your page in a set period of time. You can choose to market your ad to people based on many factors, including those who have engaged in your posts, visited your website, or watched a certain length of your videos. This is a great way to put your ad in front of people who are already familiar with your brand.

A lookalike audience varies from a custom audience in that it is essentially a “smart” audience more or less cloned from a custom audience. Your custom audience requires 100 members or more, before you can create a lookalike audience. Creating a lookalike essentially spawns an audience of people who share similar interests, behaviors, and demographics with your custom audience.

In this sense, once you’ve established a heartbeat for your ads campaigns and desired audience, it becomes that much easier to find people just like them. That means people just as likely to become loyal customers.

3. The Pixel Isn’t Working Properly

Facebook Pixel is a tool you can use to track audiences who visit your webpage and then transmit that info to Facebook, allowing them to update your advertising algorithms. Go to your Pixels tab in Events Manager, click Create a Pixel, name your pixel, enter your website url to find easy set up optins and make your choice. Then simply copy and paste the code provided by Facebook into your website. Once you’re done, Facebook ads will track, optimize, and constantly work to improve your ad performance.

Pixels will work to track actions taken on your website outside of the Facebook page, like visits and clicks, sign-ups, and purchases. If you haven’t already synced up your website, it’s an absolute must. If you are already using Facebook pixels, there’s always a possibility the code may not be working correctly. If you’ve noticed your ads haven’t improved over time, or are simply not performing at all, it may be time to troubleshoot your Pixel.

What if All of This Was Easy?

Facebook ads CAN work and DO work, but you have to utilize all of the tools that Facebook has to offer, and you have to manage them effectively. Doing this is no easy task, but you don’t have to be a marketing expert to achieve some level of success, but it certainly helps. Fortunately, there is plenty of help for the rest of us who are less than master’s in the art of the Facebook ad. Programs like Automated Ads streamline the management of mulitple ad sets and vastly improves your chance of success without losing your shirt.

There’s a lot that goes into launching a successful Facebook ads campaign, but fortunately for some of us, you don’t have to do it alone.

How Split Testing Can Massively Increase Your Conversions and Sales

Too many business owners and marketers will only create one version of an offer, sales page, opt-in page, ad, etc., and simply hope that it works. If it does, they’re happy. If it doesn’t, they think that the offer simply doesn’t work.

That’s a horrible way to go about it. If your first attempt doesn’t work, you’ll want to create several different versions of all of those to see if maybe it’s something in your sales copy. And even if you get lucky and get a winning offer right off the bat, you’ll want to constantly test new things in the sales copy to see if you can increase clicks to your ads, lead conversions to your opt-in pages, sales to your sales page, and upsells to your upsell pages.

It doesn’t have to be hard. Even just changing around headlines or little things here and there can often have drastic effects. For instance, you might find that changing a headline and shortening down the length of an opt-in page might boost your lead conversions from 20% to 30%.  That alone could increase your sales by 50%! And by tweaking an upsell page just a bit, you might find that you move conversions there from 5% to 8%, which would be a 60% increase on the backend! Little changes can go a long way and can easily turn a loser campaign into a winner.

And the best part about all this is that little increases in conversions here and there can be responsible for massive increases in money made overall. But having said that, you want to be sure to focus your efforts first on the parts that make you the most money. For instance, improving your front-end conversion rates or those on your biggest money making upsell will almost certainly make you a lot more than focusing on your fourth upsell that doesn’t sell much currently (not to say you can’t improve that and make more, though).

One awesome free tool you can use is BizFire’s Funnel Maker, which you can get for free at www.bizfire.com/funnelmaker. This tool not only lets you build out funnels to simulate a real business, but it lets you see what happens when you increase or decrease conversions in various parts. It’s perhaps our favorite tool to play around with and plan out our businesses!

So make sure you are always testing new sales copy and upsells in order to see if you can increase your opt-in rate, sales conversions, or upsell conversions. Little changes can often have drastic effects that can turn a bad campaign into a winner.

And to check out the Funnel Maker software for free to see how even small changes can massively impact your conversions, click here BizFire’s Free Funnel Maker & Analyzer.