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Facebook CPC – Don't Waste Your Money

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101–110 of 172 posts

Re: Facebook CPC – Don't Waste Your Money

#101
I just tested the water with Facebook Ads for my startup AppBlade.com as well, budgeted some $500. Did my best to target mobile application developers, this was my exact experience. Thousands of clicks, not a single sign-up. Also the CPC was higher than Google for our keywords.

Google in the same timeframe has had a measurable ROI and is converting at ~10% for us; even mobile clicks.

This is just data, it's worth experimenting for yourself but I definitely feel that something sketch is going on. Make sure to use utm_ codes and something like MixPanel so you can track the originating source for your paying customers.

Re: Facebook CPC – Don't Waste Your Money

#102
The problem with the article is that the author draws a conclusion with far too little data, akin to signing up for NetFlix and saying it is a terrible service when the first movie doesn't buffer fast enough.

I've spent mid six-figures on Facebook CPC ads over the last several years and can definitively say that they work very, very well - depending on your use case. Mine is not the OP's use case (though I've sold a metric a-ton of SaaS on FB).

I advise everyone here thinking about FB ads to do the following:

- If you try it, dedicate a serious amount of money. Nothing less than $500 will suffice as you need to get statistically significant data across all your targeting sets.

- Focus very narrowly on your target market. Trying women age 22-29? Do that in your metro area only. Keep your targeting sets small so you have fewer variables to contend with.

- Don't lose your nerve. If you give up too quickly you'll know nothing.

Finally, I do understand the OP's frustration with click numbers from FB vs. GA. Don't let it get you down, as this is common on every platform. Optimize for your actual logged data and you'll profit.

Re: Facebook CPC – Don't Waste Your Money

#105
Oh boy. Another one of these posts.

While you can self-serve advertising, it is not necessarily a good idea, in the same way that representing yourself in court is not necessarily a good idea.

Facebook cares much less about fraud than Google does, because FB has been under much less external pressure from shareholders to do it. That is not to say that various Google properties do not have fraud issues still. This is reflected in the price differentials.

After all, entire IPOs built around Adsense fraud occurred in the mid-2000s. There have been countless small businesses built around link fraud. It is quite likely that some of the major media names built on social traffic are also based in part upon defrauding social advertisers, because as of yet, few have cared about it, and many investors will just reward companies based on trivially faked traffic metrics.

But guess what? Circulation fraud is a problem that has been with us for over a century in media. Some combination of the price system, auditing, direct response ad testing, corporate incompetence, the good ol' boy network, and other methods have kept it from making advertising either totally useless or totally risk free.

Despite this, here are some issues that could help you advertise better in the future:

1. This is not a good ad. The copy is bad. The illustration is bad. The call to action is unwieldy. The logo placement is haphazard. The headline is Wrong. The human figure is in the wrong position. The button placement is haphazard. You would be better off plagiarizing ads from Mint and swapping out the logos and colors. If you want to keep the lady accountant mascot, put her to the left of whatever copy you want the visitor to read, and make her look at it.

2. The demographics you selected might as well have been at random. Market research is not throwing a dart at the entire planet and targeting whatever the dart landed on.

3. FB != Adwords in the same way that a newspaper != the yellow pages != a niche interest magazine != radio != flyers != e-mail spam != direct mail != a catalog and so on and so on and so on.

4. Your budget is so small that it barely qualifies as a test campaign. You ran a test campaign and discovered a hazard to avoid. That is the point of the early tests. If you run out of budget before you can discover a profitable marketing strategy, your tests will uncover that you are out of business.

In this case, you are dazzling yourself with your measurements because it is easier for you to do so than it is to think at a higher level about your objectives and the methods that you want to use to achieve them given your resources. You could call this Silicon Valley Degenerative Metrics Dementia. Sadly, there is no known cure for SVDMD.

I could personally care less if Facebook goes out of business, but as long as real people with wallets continue to use it, it will have some utility to advertisers, so long as they put forth at least some good faith effort to control their bot/fraud/misclick problems.

Considering some of the things that I have seen with Facebook, I am not confident that they really care, because many investors will reward them when they count bot users (or human users living in third world conditions) as if they were humans with first world bankrolls. There is no comparable Matt Cutts figure for Facebook. I think the real money on the platform, like was the case with Google for a long time, is on the criminal side.

Hopefully some short sellers are paying attention to these stories, because terror is the only thing that will induce Facebook to stop its absurd gyrations on the product side and actually police their platform. Short sellers can orchestrate a PR campaign and either pressure Facebook to start caring or can just make a lot of money by torpedoing the firm through aggressively publicizing its failures.

All that being said, I hope that this is helpful to you, and I am glad that more businesses are learning that online advertising is difficult, complex, and risky (like advertising everywhere and always in all mediums over all time periods using all sorts of technologies).

Re: Facebook CPC – Don't Waste Your Money

#106

Earlier quoted context omitted.

Please enlighten us about those right circumstances that somehow magically turn facebook ads into successful and profitable campaigns.

Well, I used to scrape audiences from open groups in order to get extremely targeted segments. That works.

wait.. so you can feed a bunch of facebook user ids to the ad system, and only those users will see your ads?

Re: Facebook CPC – Don't Waste Your Money

#107
post #91

I'm a huge fan of only using FB for retargeting. You know you aren't targeting spammers, and there's some sort of legitimate interest there. The only risk here is some cannibalization and duplication, but if you use some higher end analytics and pay attention to it that shouldn't be too much of an issue.

This is basically the correct way to go about it when you have a small budget.

Re: Facebook CPC – Don't Waste Your Money

#108
post #61

Within the last week I performed a similar "experiment" for newly created facebook.com/AmeriStartup. I created two FB mobile advertisements to direct traffic to the website, though the website is more eCommerce/service than any type of sign up. Budget $50 over 3 days reach was ~20,000+; the click through rate was .5% and .4% for the 2 ads; just under 100 clicks to the website with none resulting in conversion. More d…

There's a good analysis for this phenomenon: https://www.youtube.com/watch?v=oVfHeWTKjag It was posted on HN a while back. The gist is that there's a high chance that your ad was clicked by click farms, even though you bought it legitimately from facebook (in an effort to fool clickfarm detection, apparently). What's even more interesting is that not only are you wasting money buying the ads, you also end up with les…

Plus, you won't be able to remove that negative as you can't remove likes and your page will be seen less forever. What does this show? Don't ever, ever pay for likes.

Re: Facebook CPC – Don't Waste Your Money

#109

Like others have said, it really depends on what you're selling and who you're targetting. Our example (country specific mobile app for doctors), spent 100 € on AdWords, end result was literally 0 app installs, 0 sign-ups, 0 everything. Medical keywords are expensive, no chance of sending them directly to the App Store/Play Store (that we saw at least), and no other useful targetting. Here come Facebook mobile instal…

Are you really getting $0.10 installs via Facebook Mobile ads? If so you're performing better than any FB ad account I've seen in the last 6 months (and I've seen a lot). Even gaming doesn't perform close to this well.

If this is actually true you should be doing affiliate installs which routinely pay out $1 with no (or high) caps. You could literally make tens of thousands of dollars daily.

Re: Facebook CPC – Don't Waste Your Money

#110

This is a single campaign, and a single test, with one set of variables. Concluding something overreaching like "Facebook CPC ads don't work" after a test like that is like saying, "I tried mixing two chemicals, and there was no reaction, chemicals must not cause reactions." Think of it like a computer program. If 99% of the program is right but one thing is broken, the entire thing won't work. Marketing is, in a lot…

Please enlighten us about those right circumstances that somehow magically turn facebook ads into successful and profitable campaigns.

This person: https://news.ycombinator.com/item?id=7531583 , apparently.
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