62% of small business owners believe that Facebook ads don’t work.

…And with 9 million other advertisers using Facebook as a platform, who can blame them? I remember when I first started advertising on Facebook, I poured several hundred dollars of my own savings into Facebook ads that targeted local small business owners. (That may not seem like a lot, but keep in mind I was a broke college student). I was ecstatic to see what results came of it and was very confident that I would have several clients by the end of the month.

My audience parameters were great, especially for a small budget. I was averaging $5 - $10 a day in ad spend, for an audience with only 3 characteristics and a total population of a whopping 29,000 Facebook users. In my first month of advertising on Facebook, my ad spend quickly added up. I tried different ad goals, ad copy, static images, videos, and offers. Needless to say, it ended up being one of the most expensive lessons of my life so far.

After thousands of dollars spent on Facebook Ads, I was able to take the data from that “wasted ad spend” and apply it to future strategies. After careful analysis, I learned what it took to create Facebook Ads that targeted an audience that was ready to take action and speak to them in a way that drove action. These statistics are from a client of ours that averages above a 3.0% click-through-rate daily (industry average is about 0.95%).

Several weeks in and I had nothing to show for it. I quickly turned resentful towards advertising on Facebook. I was happy to see just 2 or 3 click-throughs a day on one of my ads. I didn’t have the large budget necessary to reach thousands of people a day, and I certainly didn’t have the patience to wait weeks for Facebook’s algorithm to adapt to the content of my ads. Besides, who buys stuff on Facebook anyway?

Well, as it turns out, quite a few people do. The healthcare industry alone has an 11.5% average conversion rate. Meaning for every 100 people who click on a healthcare ad, 11-12 decide to take the desired action. I mean, who would have thought that people would let a Facebook Ad determine where they go for healthcare? To put this even more into perspective, 78% of American consumers say they have purchased a product from Facebook. That is nearly 250,000,000 people, and that doesn’t even include repeat customers or multiple product purchases.

But that’s enough boring you with stats. Why do Facebook ads work for some, but not others?

Sure, budget can contribute to this. If you have several hundred, or even several thousands of dollars to spend a day on ads, you’re going to see some good conversion rates. Big budgets allow you to target massive audiences and still outbid other advertisers on almost every user. But what if you don’t have a large budget?

What if you only have $150 to spend on ads a month? Like I’ve said, you don’t need a huge budget to convert customers. Just because there are 9 million other advertisers on Facebook, doesn’t mean that any of them are good. Of course there are good ones out there, but let’s face it - when’s the last time you saw a Facebook ad you thought was good? When is the last time you saw a Facebook ad and thought, “Yeah, I would trust them.”

So what’s the differentiating factor?

Running Facebook Ads with just a few dollars a day limits your capabilities with objective and targeting, but does not limit your results. The key is to segment your ideal audience into smaller niche markets who are already interested in your product or service.

Let’s say you have $5 a day to spend on ads. Forget about your audience reach for a second. Even if you only reach a couple hundred users a day, who do you think they’re going to remember seeing the most? The ad that skipped every valuable aspect of connecting with someone and screamed, “HERE, BUY THIS!” or the ad that related to them and their interests and provided some sort of value benefit? It may not convert the viewer there in that moment, but they’re not going to forget you as the annoying business who interrupts their videos of cats or greatest sports moments.

That’s when you follow up with those potential customers by utilizing a retargeting ad. Follow up and provide them with more value, or make them an offer. (That next step really depends on your product or service). They’ll remember you as the business who can relate to them, and will be much more willing to buy from you. If your retargeting ad encourages a follow or a like, you can use that to build your audience. From there, you can use your content marketing strategies to engage them and continue building trust.

The most important and overlooked step to running successful Facebook Ads is analyzing their performance. Using your industry’s benchmark statistics for Facebook Ads can help you understand how you are performing compared to competitors and where you can improve. Consistent upkeep with this step will allow you to optimize your Facebook campaigns and get the most out of your budget.

For one quick example to end on, I give you this personal experience of mine. I was sick of seeing no results and low click-through rates. I had wasted several hundreds of dollars of my savings on these stupid ads, and as a struggling college student, nonetheless. I had bet on myself and lost. But this couldn’t be the end, could it?

I decided that my only option was to start studying relentlessly on how to write ads that connect with viewers. I spent several hours a day studying techniques and practicing my copywriting skills. I began simplifying my ads and offering a short and specific insight to the kind of value I could provide, then leaving it at the viewer’s discretion on whether or not to click the link. My main purpose changed from selling my company, to giving them a reason to learn more. My click-through-rates and average video-view time doubled the first day. Since then, my average CTR has reached around 2.75% for all of my clients.

The biggest thing I learned while teaching myself how to run Facebook Ads for small businesses was that the words you use and how you appeal to your audience is more important than anything else. If you can provide value and resonate with your ideal customer, you will see success in your Facebook Ads performance that you have only ever dreamed of.

Author’s Note: Article was originally written on September 24, 2020 and was edited for re-publish on March 29th, 2021.