The 5-Step Process HubSpot Uses to Optimize Facebook Advertising Costs

 When Mark Zuckerberg shocked the digital marketing world with his announcement that Facebook would overhaul its algorithm to let users engage with their friends and family more and less with brands, the social media giant’s CPM skyrocketed 122% -- the highest spike in Facebook ad prices over the previous 14 months.

Today, organic and paid reach are still flatlining, causing ad costs to balloon to unprecedented levels. And in a space where advertising has historically been cheap, how can marketers sustain their revenue without having to increase their Facebook ad budget?

One word: optimization. In a nutshell, ad optimization is getting the maximum bang for your buck for every single dollar you spend distributing content. To do this, you need to constantly test your Facebook ad strategy and use data to course correct it enough to maximize your results every time you send out an ad. There are a number of ads tools available that can help -- many of which are free. But still, ad optimization is easier said than done.

To help you implement an efficient and effective Facebook advertising strategy, we'll flesh out HubSpot's five-step process for optimizing Facebook advertising costs. Read on to learn about our approach to Facebook advertising.

Download Now: Free Facebook Advertising Checklist

The 5-Step Process HubSpot Uses to Optimize Facebook Advertising Costs

1. Choose a campaign objective.

From a fifty-thousand foot view, we usually pursue two types of Facebook advertising campaigns: direct response and branding.

Direct response campaigns aim to get people to take a desired action, like a download, signup, or purchase. Branding campaigns aim to get as many eyeballs on our content as possible. Clicks aren’t the goal here, exposure is.

Facebook also knows which users are most likely to click on ads and which ones are not, so whatever objective they chose at the start of their campaign, the social media giant will distribute their ads to the right audience.

2. Pick a bid strategy.

On Facebook, there are two main ways to buy advertising space: Cost Per Thousand Impressions (CPM) and Cost Per Click (CPC).

When we use CPM bidding, the risk is completely on us. We’re paying for impressions, not clicks, so if our offer or creative isn’t compelling, we’re wasting their money.

When we use CPC bidding, we share the risk with Facebook.We need to craft compelling ads and Facebook needs to distribute them to the right audience. Otherwise, both parties lose.

3. Build out targeting.

One way we like to target our ads is by building a custom audience. A custom audience is a list of people who have specific attributes, like being one of HubSpot’s monthly active users or CRM signee, that we plug into Facebook. Facebook then analyzes this list of people to match them with their Facebook profiles and builds a more robust audience for us.

A couple of years ago, we used a custom audience to target ads to CMOs who use Google Chrome.We wanted to see if their strategy would decrease our cost per acquisition and cost per click for one of HubSpot’s Google Chrome extensions.

But we also had a hunch: We could convince CMOs who use other browsers that HubSpot’s extension was valuable enough to switch browsers for.We ended up being right. When we broadened our targeting to all browsers, we discovered that we could acquire twice as many users for HubSpot’s Google Chrome extension compared to only targeting Chrome users.


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