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How We Generated a ROI of 566% Through Facebook Advertising

How We Generated a ROI of 566% Through Facebook Advertising
19th August 2019 Adam Ward

Facebook Advertising

 

There’s no denying that online advertising – and more relevant to this post, Facebook advertising – has gained in popularity in recent years.  TV has always been the staple diet for generating brand awareness but measurement and direct ROI has always been difficult to quantify. Research commissioned by Thinkbox from Ebiquity and Gain Theory found that all forms of advertising create profit with a ROI over 3 years of £3.24 per pound spent – with TV performing best at £4.20 per pound spent.

 

Facebook Advertising

However, TV advertising requires deep pockets for the best exposure. But what if you could reach 1 million people at a fraction of the cost and generate returns of a remarkable £5.66 ROI per pound spent? Well, we found a way via Facebook’s advertising platform.

In the 4 years The Northern Foundry has been operational, we’ve adapted to Facebook’s ever changing advertising policies, procedures and algorithms, to be able to generate success for our clients. However, success doesn’t always have to be measured by money. Each client often has their own agenda and targets for us to reach.

 

Client Case Study

In this particular case, with this particular client, they began utilising both The Northern Foundry skill set and Facebook’s advertising platform in early November 2016.

Fast forward almost 3 years, many different experimental, successful and unsuccessful adverts later, and we have now delivered Facebook adverts tallying up over 6 million impressions to over 1 million people whilst acquiring over 500 sales worth over £100,000!

Achieving such a well-rounded, monetary landmark is not only satisfying to showcase at the quarterly management meeting but a celebratory moment for ourselves, as an agency.

How much have our client had to spend to achieve such sales? The answer is a smudge over £15,000. Although this gives a huge 566% ROI there are some additional costs in the advert set-up, management and design. Still, it’s safe to say, the margins are healthy. It’s also worth bearing in mind that this is from Facebook Advertising alone, not including organic Facebook sales.

Organically, since we began managing their Facebook page, it’s generated over £45,000 in revenue, through 232 transactions, and had over 80,000 new users conducting over 118,000 sessions. Compare this to a mere 31 transactions and £5,250 worth of revenue, with only 8,400 sessions in the same time-frame before our services, and you can start to see why we’re feeling celebratory.

Facebook Advertising

 

How have TNF achieved this? 

Strategy

Strategies are always useful. Be it short, medium or long-term, having a plan is worthwhile. Plan it in pencil though, so you can adapt it over time.

We had several discussions with our client about their ambitions for Facebook. Growing its audience, reach and ROI were key.

To do this, we proposed a strategy which included regular offers, competitions and engaging posts. We began to combine these organic elements with Facebook Advertising to give us access to a new audience, as well as remarketing to the existing one. On top of that, we overhauled the Facebook page, introducing relevant sections and giving the whole thing a design uplift, to make it more appealing for its members.

 

Facebook Advertising

 

Because we were increasing the amount of traffic to the website, we knew it would be crucial to have a website that performed when customers landed on it. An ongoing analysis of the website, its performance, structure and functionality is important for decision making.

 

Creation

Our client placed full trust in our design and content ability. This is helpful when creating a range of adverts for alternative purposes and objectives, for a fleet of products and offers.

Eye-catching designs, showcasing the products and communicating the message clearly is imperative, when you consider how quickly you can scroll through content on Facebook. Through the insight and analysis tools that Facebook provides, we were able to recognise our key audiences and their chosen devices and create content to appeal directly to them.

Facebook’s advertising platform caters for all kinds of strategies, from increasing brand awareness to conversions, leads, engagement and more.

 

Facebook Advertising

 

Selecting the correct advert for your Facebook Advertising strategy is important and does require some know-how and experience with Facebook’s Business Manager platform. Whether it’s a carousel to showcase a range of products or an animated video to deliver important messages, again there are multiple options available.

 

Facebook Advertising

 

Not only are the adverts important in the creative phase, but the targeting of them even more so. Again, after some time, Facebook advertising algorithms will begin to learn and detect audiences which interact with both your website and Facebook page. From this, we are able to create custom audiences to retarget to and even create lookalike audiences with similar demographics, interests and behaviours.

 

Management 

The ongoing management of your adverts can make all the difference during a Facebook advertising campaign. Tweaks to the audience, budget or creatives can definitely yield better results.

Understanding and recognising when an adverts performance, delivery or engagement rates are hitting a pay streak or dwindling into nothingness, is a skill we’ve inherited over time, by analysing adverts for our clients. For instance, we noticed how website traffic and purchases for our client’s site were often in the evening and on the weekends, so we instructed certain adverts to only deliver at these times.

 

Facebook Advertising

 

Moreover, we’ve begun to discover how certain adverts, tailored for specific audiences on particular platforms work best for the different strategies we want to employ.

 

Reflection 

Over the last 3 years, we’ve learnt a lot about our client’s business. This ongoing trust and loyalty only benefits all-round performance. Due to the fact that we manage other marketing medium for their business, we are able to better understand and communicate their ideas and products.

Additionally, by constantly analysing and reflecting on our own performance, we have been able to improve or adapt areas where we’ve seen success or issues. Some times it’s trial and error until we have enough data or evidence to suggest a new strategy or idea to our client, but without that initial trust or time period, we feel some campaigns will never be a success.

 

Facebook Advertising with The Northern Foundry

If you’re one of the 2 billion plus Facebook users, you will have experienced a Facebook advert (whether you’ve wanted to or not!). Facebook also owns other platforms such as Instagram where their adverts can hit you. Often, it feels like there’s no escape, hence the new policies introduced by Facebook this year.

Regardless of the privacy invasion, Facebook’s advertising platform has proven it can be a huge success for many different types of businesses. It’s probably championed due to the low level costs, in terms of reach and ROI, compared to television adverts, for example.

Lastly, it’s important to understand that Facebook advertising goes much further beyond a ‘boosted post’ and is extremely intricate and intuitive. Employing expertise in this area is likely to stand your business in better stead than attempting a Facebook campaign with no experience at all.

 

If you’d like to know more about how Facebook advertising can help your business, please get in touch