Where Google ads were 10+ years ago, Facebook is now. It's a landscape ripe with opportunity. Few mid- and small-sized businesses have figured out how to really use Facebook ads effectively, so there is still lots of room in the market to grow.
If you’re considering the value of Facebook advertisements for your B2B endeavors, it’s important to understand how far the platform has come in recent years. Once decried as a low-value investment due to poor targeting, ineffective delivery, and low engagement, Facebook has rapidly increased the potential of its advertising in recent years.
Any business willing to invest in leveraging Facebook’s targeted delivery mechanisms to the fullest will find it an incredible tool for securing B2B leads.
Here are a few facts to catch your interest:
1) Facebook’s algorithms target ideal recipients
If you’ve paid attention to the development of Facebook over the years, you know they’re completely overhauled the end-user experience, cultivating a highly curated approach to delivering content in the news feed. Few platforms have developed the same level of detail and analysis which drives the Facebook algorithms, which account even for usage details such as adjustment of video volumes and where pointers linger.
This has made it harder for low-effort social marketing efforts to achieve success on Facebook, but it’s created an incredible system of content targeting for Facebook to leverage in paid advertising. You can get incredibly detailed in choosing your audience for advertisements—and behind the curtains, Facebook gets even more precise. You won’t get nearly as many impressions with Facebook as you might with other ad platforms because you won’t need as many.
2) The specificity of B2B advertising can mean lower competition
While certain approaches to B2B advertising can throw you into the thick of extreme competition (like buying lead lists and working off those), the specific nature of B2B products and services creates any number of low-competition avenues for a creative advertiser to deliver content.
As your insight into your market segments improves, you can take increasingly specific approaches to the targets you most need to see your content, minimizing costs and maximizing lead generation.
3) 96% of small businesses maintain a Facebook presence
A simple statistic which speaks for itself. The people you need to see your advertisements are there, waiting—you just need to get the right message in front of them.
Enough said, right?
4) Higher value leads give pay-per-click advertisements a strong ROI for B2B
While it’s not always true, generally speaking, the value of any given lead will be higher for a B2B firm than a single lead for a B2C firm. That makes paid advertising on a platform such as Facebook, which allows you to target individuals in a precise fashion, offer a particularly high ROI.
The most competitive fields for Facebook advertising are national consumer chains, which nonetheless manage to obtain value from Facebook ads—put together a savvy, low-cost B2B campaign, and you’re looking at a truly incredible ROI.
According to AdEspresso, the U.S. the average cost per click for Facebook advertising is $0.27, with an average CPM (cost per thousand impressions) of $5.45. Of course, this varies by advertiser and industry, but that holds pretty true with what we've seen at the low end. At the top, you're looking at $1 per click -- which for most industries is still much lower than Google ads!
5) People spend more time on Facebook than other social networks
While other social networks may boast similar or even greater populations than Facebook, research confirms that Facebook users spend more time on Facebook than Twitter users on Twitter, LinkedIn users on LinkedIn, etc. That means you have a better opportunity to land your ads in front of the right eyes at the right time to generate a lead.
On average, people spend more than 50 minutes a day on Facebook and it's suite of mobile apps.
6) Facebook ad campaigns teach businesses about their market
Few things impact B2B marketing success more than data about that market, something which the extreme precision of a Facebook ad campaign can provide in big amounts. It might seem strange to invest in Facebook advertising for data rather than leads (which you can get by pushing to a landing page), but it makes a lot of sense for any business with a strong ability to convert information into success—because very few channels can provide anywhere near as much data on your market at a Facebook advertising campaign.
What do we mean by data? By digging into your results, you can figure out the best age range, messaging by segment (this is huge for all other marketing), and even whether your audience is on mobile or desktop.
Seeing which segments respond to which content in what ways not only allows you to refine your paid advertising with Facebook, it allows you to develop more effective inbound, social, and paid campaigns across every channel you utilize.
7) Ad values on Facebook have greatly increased due to quality improvements
If this seems like a negative rather than an argument in favor of advertising on Facebook, keep in mind that savvy campaigns can keep their costs much lower than the average. This increase in ad value instead indicates the massive improvement in the value of Facebook advertising, something which should catch the attention of all businesses considering marketing channels, not just B2B customers.
Once perceived as a dismal market for advertising, the value of Facebook ads has improved in concert with the improvements in Facebook’s content sorting algorithms and its refinement of its advertisement delivery. The quality of feeds improves, prospects pay closer attention to what Facebook chooses to show them, and advertisers benefit.
It’s important to understand what Facebook ads truly offer: the opportunity to communicate with ideal prospects. Make sure you’ve built the right funnel to receive those prospects or no investment in ads will turn a profit. That means you have strategically thought about where ad clicks are landing, what you want them to do while there, and how to use the information they give you to develop them into a good lead.