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April 29, 2010 / Raffy Pekson II

Practical Lessons I Learned from a Facebook Ad Experiment

I recently set up and ran a Facebook advertisement, experimenting to see if this works to an advantage. Here is my Facebook Ad setup/profile:

  • It ran April 26 12:00am PST up to April 29 6:00am PST
  • I opted for “Impressions” than “Clicks”, at 80,000 per day
  • I targeted those residing in the Philippines
  • I targeted 30-50 years old, guessing decision makers
  • I targeted those who graduated from college
  • This had about 400,000 profiles in Facebook
  • My daily budget was $4.00 per day, totaling $16.00
  • My CPM bid was $0.05 (cost per thousand impressions)
  • My URL (when clicked) went to KunnectPH.com
  • www.kunnetph.com routes to a WordPress Blog

After 4 days, here are the results of my Ad:

  • It generated 481,006 impressions
  • It generate 118 clicks
  • My average CPC was $0.14 (cost per click)
  • My average CPM was $0.03 (cost per thousand impressions)
  • My CTR was 0.025% (click-through rate)

My Facebook Ad Stats

I checked my blog-site to see if the same clicks occurred as reported by Facebook:

  • Day 1 generated 24 clicks
  • Day 2 generated 19 clicks
  • Day 3 generated 18 clicks
  • Day 4 generated 17 clicks
  • Total clicks = 78 clicks

Where in the world did the 40 clicks difference come from or go to? The target URL actually routes to my WordPress blog where it (WordPress.com) provides statistics of clicks. I am assuming that the WordPress stats are accurate.

Conclusions:

My Facebook Ad

I should have opted on the maximum size of my target market. Rather than just penny-pinching at only 400,000 impressions, I should have gone to as much as half (1,600,000) of the total allowable (3.2 million) impressions I could get for 4 days.

I could have paid for “Clicks” than “Impressions”. But then, I’m still wondering where 40 clicks went. If I went for Clicks than Impression, would that have generated more clicks? I don’t know the answer to this.

I should have fixed my destination website well. If you go to my destination site, it’s my presentation of a call center technology service in the guise of my blog. However, most of the clicks just stayed at the Home Page. Less than 10 opted to click at the About and Contact tab-pages. So, I should have planned well for this by making sure the surfing experience of my visitors was a lot better than what was being presented. This only means practically no one has (yet) called or e-mailed me.

I reasoned this activity as an experiment rather than expecting good results. So, even if I wasted $16 on it, it’s $16 extra money that I might have lost in a slot machine anyway (56 quarters?) If you are going to attempt your first web advertising, it doesn’t really matter if you get an experienced person or group to do it for you or, like me, experiment on about $20 and learn your lessons. The trick is to test then optimize on the next round; because if you’re thinking of succeeding the first time, then you’re just fooling yourself.

So, whether be it Facebook or Google Adwords, the practical advise is to PLAN well. Ask the basic question, “What is the single objective for advertising on the web, particularly Facebook?” Yes, only one objective; because if you had more, you might not fulfill all of them.
For example, if the intention is gain the interest of the user (can I call him or her a “clicker?”), make sure to FIX your site properly. A UAT (user acceptance test) would be your Mom and Dad. If you live alone, have an online friend visit your site and get the comments – without telling that friend what to do or what to expect. The best person is the type that fits your target market.

If your intention is a sale, FIX your site even better. “First impressions last” is not a byword in the web world – it’s the first goal to win the interest of the clicker. After that, it’s the (surfing) experience – the easier, the better. Next comes relevant information. Lastly, if you can invite your clicker to share some basic, personal information like a name, location, sex and age, that would give you a clear idea of the demographic of your clicker.

So, the end-game is your destination website – how aesthetically pleasing, how functional, how is it structured, how can one get information, how one can learn from it as fast as possible, and a lot more how’s will definitely be the factors of your success in getting the clicker to be a sold proponent, advocate or customer of your product or service.

Pic by Facebook.com

If you test your Ad and see that your target audience isn’t responding well, then do a deeper understanding of Facebook’s psychographic and demographic data. Chances are, you’ll shout “Eureka!” after a few permutations.

There’s one more: if not my website, I would have “also” created a Facebook Fan Page and built my marketing and presentation through the Fan Page. Maybe in a socially-oriented online network such as Facebook, joining a Fan Page is much more appealing. My blog or website could have just acted as a reference or an order-taking site.

I leave you with a mission statement that I’ve always had in me which, sad to say, didn’t entirely reach my first Facebook Ad (test):

Always make it VERY EASY for your customer.

  • Make it very easy to START.
  • Make it very easy to STAY.
  • Make it very easy to EARN or gain.
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