Facebook ads – they’re so hot right now. But like with all things bright and shiny in marketing, it’s smart to be skeptical and ask whether it’s really right for your business. The tough part is that this isn’t necessarily an easy question to answer. Well at least it didn’t used to be…
Introducing the Facebook Advertising Opportunity Calculator
WordStream is always trying to keep you an informed and on top of the online marketing industry. So it made perfect sense for us to help you answer that burning question: Is Facebook advertising right for my business?
Whether you’re just starting out or looking to expand your online marketing to a new channel, you’re probably asking the same questions about Facebook ads. Are my customers on Facebook? How do I find them? How much will it cost? What kind of returns can I expect? Well, WordStream was listening, and we have the answers.
What Is the Facebook Advertising Opportunity Calculator?
Our new Facebook Opportunity Calculator is a free tool that with a few easy steps can show you what the Facebook landscape looks like for your business. Just follow the steps to give the tool one-time access to your Facebook Business Page, and you’ll get a free report and analysis that breaks down your current performance and your potential to reach new audiences given a monthly budget for Facebook ads and promotion.
The report includes five sections:
- Potential Reach
- Cost Calculator
- Lookalike Audiences
- Remarketing Calculator
Each section is designed to help you understand Facebook advertising and how it can help your business.
Let’s look at what each section of the report will tell you in more detail.
Conventional thinking would tell you that if you have 100 fans then every time you post content to Facebook, 100 people will see it. In reality this number is usually quite a bit lower. This can come as a surprise to many, but in today’s world nothing comes easy.
Based on your Facebook account data we can determine what percentage of your fans are actually seeing your content. We also pull together some key stats about your Facebook page including:
- Number of page fans
- Average posts per month
- Average number of people who see your posts
- Average likes, share, comments per post
- Average page impressions per month
In this section we continue analyzing your fans by displaying your actual Facebook audience, your expected audience and your potential audience.
Your actual audience is based on how many of your fans are actually seeing your posts. Your expected audience is the number of fans you have, and your potential audience is the number of relevant unique Facebook users you could reach with paid advertising.
This last number is the really important one. There are over 1.65 billion users on Facebook and you probably don’t want to advertise to all of them. You want to advertise to specific people who are likely to become your customers. To determine your relevant potential audience we look at your Facebook fans and count the number of similar users. This gives you a good sense of how many potential customers you have on Facebook.
Facebook Ads Cost Calculator
Now the next logical question is, how much is this going to cost? Facebook is typically quite a bit less expensive to advertise on than AdWords. Our interactive calculator lets you choose from a range of dollar amounts and see how many users you can expect to reach based on a monthly budget.
This is where Facebook advertising really gets interesting. If you show Facebook your target customer it can find more people who “look like” your customers. This can be done with something as easy as a list of your customers’ email addresses, a list of people who visited your website or even specific demographic information you know about your customers.
You feed this information into Facebook and they give you back an audience of people to advertise to. Think about your personal Facebook page and all of the information it knows about you. Now imagine all that information at your fingertips for 1.65 billion people. Talk about cherry picking your best customers!
Another great way to advertise on Facebook is through remarketing to your website traffic (in other words, showing your ads selectively to people who have already visited your site). We have found this to be very effective. In this section we let you select how many people visit your website per month and then, using an algorithm based on our Facebook research, we can estimate how many additional leads or sales you can get through Facebook advertising.
Sounds Great, What Now?
Don’t have a business page yet? No problem! You can still generate a Facebook Opportunity Calculator report based on our industry average research. Check it out.