The marketing world has shifted focus from marketing on mainstream media to giving more attention to social media marketing. Social media platforms have provided businesses and brands with newer alternatives and more effective ways of reaching their target audience. Facebook has established itself as a powerful marketing tool with its user-friendly interface that allows for good communication and engagement between businesses and customers.
Chris Chung is a Facebook Ad Strategist based in Hong Kong, helps high-growth companies and entrepreneurs to scale using Facebook advertising. His marketing services and results speak for themselves with testimonials from some of the best and highly recognized celebrities and entrepreneurs in the world. Chris consistently delivers qualitative results and possesses the expertise to help businesses profitably scale their brand, products, and services using Facebook and Instagram advertising.
Entrepreneurs like David Meltzer and Nicholas Kusmich have shared their testimonials for Chris and praised him as the No.1 Facebook Ads Strategist in Asia.
Throughout the years, Chris has gained vast experience in social media marketing, especially Facebook, and shares the following ways to effectively utilize Facebook to achieve the desired goals.
Here are two common questions that many brands new to the Facebook marketing platform have.
1. How much should you spend on Facebook ads?
This is the most common question people ask, but they tend to overthink it, according to Chung. He suggests that three better questions to ask are:
• How much is each customer or lead worth to you? Here is a simple formula you can use to calculate the value of a single customer/lead during the first 30 days: (Total 30-Day Revenue) / (Total # of Customers or Leads) = 30-Day Value
• How much of that 30-day value are you willing to spend on acquiring a single customer or lead? Are you willing to spend 25 percent? 50 percent? 75 percent? Or are you willing to spend the full 100 percent knowing that they will buy again in the near future?
• Is your golden number realistic?
Once you calculate the 30-day value and determine the percentage you are willing to spend on acquisition, you then have to research whether the number is realistic. If the industry standard is $40 to acquire a customer and you can only afford to pay $30, Facebook ads might not be your best choice. Alternatively, you might want to see if you are able to increase the value of the customer by changing your offer.
Facebook is a bidding platform, so whoever pays the most will win the bid. Using the same example, if the industry standard is $40 and you are willing to invest $80 on the acquisition and still be profitable, you should note down $80 as your golden number and use it as a benchmark for all your ads.
2. Who do you target when placing ads?
In the world of Facebook ads, targeting is a complicated topic because some media buyers think the more layers you use, the better your targeting. However, others say it increases costs and makes it harder to identify where sales are coming from. As a result, this makes it hard to know what to do if the media buyer doesn’t know what to fix.
According to Chung, you need to ask yourself three questions and your answers will determine the right targeting strategy.
• Who already has my ideal clients? Your ideal clients are already on Facebook, so ask yourself what individuals would they already be following?
• What do they already buy? Identify the purchasing behaviors of your ideal clients. Do they drive a Toyota or Ferrari? Do they shop at Whole Foods or the local supermarket? Pay attention to consumer behavior to identify whether the audience will resonate with your offer.
• Where do they often go? What physical locations would your ideal clients be found? Is it at a sports stadium? Yoga studio? Walmart? If you had to physically go somewhere and bump into this crowd, what place do you think they will most likely be found?
Create a list with your answers and arrange them from most likely to convert to least likely and test what works.
Experts like Chung are able to quickly identify the answers to these common questions along with tackling many other issues that come when high growth companies and entrepreneurs are trying to scale. As a result, his services are in high demand to help business overcome these challenges and take full advantage of the Facebook ads platform.
Photography by: Chris Chung