While hanging out in a Facebook group, I saw a post by someone who said that their Facebook Ad was not profitable and how to make it profitable.
I wrote a reply giving some free advice there. And I will repost the advice for the benefit of readers on this blog.
Feel free to ask any questions that you may have regarding your Facebook ads in the comments below.
I said that there is a certain formula to use to make FB ads profitable.
If you have the following details, I can help calculate if your FB ad have a good chance of being profitable:
1. What is your monthly revenue goal:
2. Your customer value or even just revenue per sale:
3. What is your conversion rate (the % of sales from the ad reach eg conversion rate = sales/fb ad reach)
4. And finally what is your ad budget per month:
Look at FB ad as a campaign that is measured over one month. An ad/product/brand needs time to gain traction and thus for enough people to see. That’s why you see repeated advertising over a period of 1 month for lets say TV. You see those movie ads repeatedly over 1 month.
Comment below ‘Yes Ali, I want the template’ and i will send you a special template on how you can keep track and measure your FB ad campaigns.
Once you learn how to properly measure with the right metrics then you can tweak and Optimise your ad for greater profits.