Analyzing Facebook Ads Lecture Notes

Introduction

• Purpose: Make students comfortable starting Facebook ads
• Objective: Determine if ads are working effectively or burning money
• Background: Experience in helping authors with Facebook ads since 2016
• Goal: Help authors increase income through effective ad management

Presenter Background

• Running Facebook ads since 2016
• Helped 25-35 authors weekly
• Assisted over 2000 people in setting up Facebook ads

Ad Basics

• Facebook ad data can be overwhelming
• Three pillars of ad success:
  1. Ad health and performance
  2. Conversion rates
  3. Profitability

How Ads Work

• Campaign objectives are crucial
• Different types of campaigns: Awareness, Traffic, Engagement, Leads, App Promotion, Sales
• Importance of choosing the right campaign objective

Audience Targeting

• Recent changes in Facebook audience creation
• Issues with current Facebook targeting system
• Importance of aligning ad creative with targeted audience
• Tips: Avoid using Advantage Plus for audiences

Ad Targeting Strategies

• Broad vs. specific targeting
• Importance of testing and adjusting strategies
• Different strategies work for different authors
• Cost considerations: Avoid unnecessarily high costs per click

Target Audience Understanding

• Understanding the pyramid of ad targeting: from high-ticket items to those not buying anything
• Importance of large audience sizes for better targeting
• Use placements effectively: include Instagram for broader reach

Ad Messaging

• Importance of tailoring ad messages to specific audiences
• Different themes resonate with different demographics
• Create archetypes for target audiences for effective messaging

Analyzing Facebook Ads

• Only three key columns needed for analysis: Cost per result, Result rate, Frequency
• Set expectations for result rates based on genre and audience
• Understanding cost per result and its implication on profitability

Working with Amazon Attribution Links

• Use to track sales and reads from ads
• Limitations in tracking: misses around 50% of reads and clicks
• Use for comparing ads rather than exact sales measurement

Determining Profitability

• Calculate read-through/sell-through value
• Assess number of clicks per sale or borrow
• Use data to determine ad effectiveness and profitability

Return on Investment (ROI)

• ROI is not the only measure of success
• Higher total profit might be achieved with lower ROI
• Importance of evaluating total financial outcome rather than just ROI

Conclusion

• Practical steps and resources to improve Facebook ad campaigns
• Offers available for further learning and consulting

Q&A

• Opportunity for questions and further clarification