Profitable Facebook Campaign

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I want to give you everything you need to know, about advertising on facebook. Without this, you won’t survive. Lazy ass people can scroll down to the campaign if they want to, but i strongly encourage you to read the whole post to get the max benefit out of this post.

Direct Linking or not?

I cannot emphasize enough how important this is. Do not direct link to any offer. You cannot direct link to a cpa offer on fb anyway, but you shouldn’t do it even if you could. Because by direct linking, you are sending all the traffic to the offer landing page, which you have no control.

Second, you need all the traffic info to be profitable on fb. What time do they visit most? What is the bounce rate (average time people stay on your landing page) ? When you know these, you can adjust the campaign and make it stop during non performing hours so your ctr will increase, earning you cheaper clicks, more profits. Unfortunately, there’s no way of automating this for now and you have to do it manually…

Cpm or Cpc

Most of the time, i don’t know why, most gurus and people who have experience with ppc advertising will tell you to go with cpc. They will say that even if you get lots of impression, if no one clicks then it won’t cost you any money. But we want clicks, right? We need as many clicks as we can get to our landing page. The more visitors we have, the better chance they will take action and make us some money.

Let me put it this way; Let’s say you want to promote a zip submit that pays $1.50 per submit. To be profitable, you need a cpc at $0.10 with a conversion rate of 10%. For every 100 clicks, you will pay $10 and if 10 people sign up, you will get paid $15. 15-10= $5 profit for every $10 you spend.

Isn’t that good? So, what’s wrong with this?

Well my friends, the bad news is the ctr for fb ads is less than 1%. The most successful campaigns run around 0.50-0.80% ctr. The ad performance is nothing like adwords ppc. Especially last year, it was possible to achieve higher ctr with girls with huge boobs but fb does not allow those type of ads anymore. They became very strict recently and if your ad copy and landing page is not relevant, then they instantly disapprove your ads during review.

So, is fb dead now? How am i gonna make money then?

It’s not dead. It’s just not easy as it used to be. With dating offers, expect to pay at least $1,20 per click, which will cost you $120 per 100 clicks. And you will need over 25% conversion rate to have a winning campaign, which we know it’s almost impossible, assuming that you get paid 5$ per lead industry average.

Cpm comes to our aid like superman

Anyone who has little bit clue about math should have already figured out that there’s no way to make profit with those click costs. So, what do we do then? We switch to CPM.

All we need is lots of cheap clicks right? What if there would be a way to not pay per click? We can do that with CPM. If we can create an ad that will get lots of clicks, then it is possible to make lots of money with just one campaign.

First we design several ads to see which one is getting the highest ctr. Then, we switch to CPM so we don’t pay for clicks anymore.

If you can get a 0.5% ctr, then you may have a winning campaign right there. Suggested fb CPM rate for broad targeting will be around $0.27 per 1000 impression. Let’s say, you got 100,000 impression. With a 0.50% ctr, you would get 500 visitors to your landing page and this would cost you $27. With a 10% conversion rate on a $1.50 zip submit offer, you would make: $75 gross profit.

However, cost per click for the same campaign would be around $0.50 per click,costing you $250 for 500 clicks. Do you see the difference now?

How to make a profitable campaign on Facebook?

This all depends on how intriguing your ad copy is. You gotta do your best and make those people click. The key factor to a profitable campaign is, to get as many clicks as you can. Because, with CPM 0 clicks and 10,000 clicks willcost you the same money.

Campaign Setup

As you know, current events are very important to get the best reaction for the poll method. For this campaign i chose Justin Bieber, because i knew that he has lots of dedicated girl fans which was perfect for my cpa offer. I chose $500 victoria’s secret gift card for this campaign, because the demographic perfectly fits for the cpa offer.

I had a generic domain, so i designed a landing page for the offer. Downloaded some images on google, made the background white, centered the image and created my poll. I also placed my cpa offer carefully, wrote my text and everything was ready to go.

Here’s my demographic

My purpose was to target people who shared the similar demographics with people who like victoria’s secret. Don’t forget that you can never be 100% accurate.

Facebook suggested cpc was 1.28 (you always bid 50% of suggested min)

As you can see, cpc was not low enough for me to be profitable. So i switched to CPM By doing this, i cut my cost to half with one click. Facebook will ask for all your money, so you should be careful when placing your bid. Start less than 50% and increase 0.10 increments till the yellow warning disappears.

Here, you can see that the min i can bid for this demographic is $0.28

Now, you can see that making a wrong choise between CPC and CPM can be costly…

Campaign Results

Ok, here’s the final part that reveals everything. I designed an ad about Justin Bieber’s Hair cut. It’s not actually the newest topic about him but it still had enough heat to test the waters. I just needed something to test the idea about polls on facebook and wanted to see how people react to it.

I created my ad around the subject with a call to action. Unlike google adwords, facebook will allow you to use “click here, click now” type of call to action words so take advantage of it.

When using CPM, you should certainly watch your ass! You have to make sure that you set a specific daily budget for the campaign so you don’t end up burning several hundreds in one day, for just one campaign with too many invariables.

After 12 hours, here’s the final result of today’s campaign.

For a daily budget set to $40, facebook gave me 150,000 impressions. Out of 60 clicks i received, 36 people participated in the poll. 20 people went to the offer page and made zip submit. The pay was $1.50 per lead. Entire campaign cost was $19,30 so ended up making $10,70 net profit.

Conclusion

Yes, the poll method ended up being a profitable campaign but there are some important facts that you should consider before jumping in with your both feet.

If i would choose CPC, same campaign would not be profitable. The min cpc bid was around $0.65 per click which would cost me $39 ending with -$9 loss.

However, by switching to CPM , facebook gave me a discount on the total cost, turning a loser campaign to a winner.

This, does not mean that you should stick with CPM I just tested a method to see if it would work. Other self serving ad platforms perform much better with cpc, such as adwords, msn search. But when the competition is high for a certain demographic, you should always consider the most cost efficient way to launch your campaign to get the highest earnings per click.

Also, make sure you find hot topics and create intriguing ads that will receive as many clicks as possible. Like facebookdude said, fb is baid on user interaction so don’t be surprised if you try to promote a clickbank product and burn all you money in one day. That’s why you see a lot of dating offers on there, which requires user interaction rather than purchasing something.

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