Facebook Advertising explained

By Dubzz | Monday, May 19, 2014

Get an introduction to the world of Facebook advertising.

In today’s business environment where dollars are tight, every dollar spent on advertising matters more than ever.

Unlike traditional advertising, with online advertising you can chose two different costing structures: Pay Per Click (PPC) or Pay Per Impression (PPI).

With PPC you only pay when someone clicks on your ad and visits your website. It is performance based and can be scaled to what your budget or needs allow. PPI on the other hand is similar to how traditional newspaper advertising works, as you pay by the number of impressions or views the ad receives.

What you want to achieve will decide which costing structure you would use. PPC is going to be used for most small businesses that want to closely control their spend and pay to have their customers take immediate action. Whereas PPI is used more for branding, when your main goal is just to get your logo and business name out there for people to see without taking any immediate course of action.

The best thing about online advertising is that unlike traditional forms of advertising everything (YES, EVERYTHING!) can be measured and tracked. Obviously it is easy to see the exact number of impressions or clicks your ad receives but you can also track the time, location, device, and conversions, so you know exactly what’s working to precisely measure your return on investment down to the last cent.

Facebook Advertising

In the latest MYOB NZ business monitor, 60% of New Zealanders are on Facebook and 80% of New Zealanders search online before purchasing a product or service – and these stats only continue to increase.

Facebook has a dangerously simple paid advertising platform, that when applied properly can guarantee more engagement with your Facebook page and, most importantly, your website. Facebook’s paid advertising is relatively inexpensive and highly targeted. When advertising on Facebook you have a great amount of control over the age, demographic, location and even interests of the people that will see your ad.

To offer a real life example of Facebook advertising, a client recently had a $300 budget to promote their Facebook page and website, for the month of April.

In just under 4 weeks their ads were seen 92,000 times over multiple devices, generated 1,265 page likes and 262 extra visitors to their website, all for only $300.

In PPI and PPC terms that is $3.20 per thousand impressions, or 23 cents per click, for a number of ads to run over 4 weeks throughout the North Island.

For April our client noted a significant increase in website visitors and online sales which can be directly attributed to their Facebook advertising campaign. This advertising spend will keep delivering, as we are now able to continue marketing to the 1200 new facebook fans captured during the campaign.

Facebook advertising is extremely simple and effective to use. You don’t even need a Facebook page for your business to use their advertising service, so there is no reason not to give it a go. The only thing you have to lose is more business!


If you would like any further advice or help with creating or managing your own Facebook advertising campaign do not hesitate to get in contact with a member of the Dubzz team. We will be more than happy to help you make the most of your online advertising spend.

Stay tuned for next month’s blog where we will explain Google AdWords.



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