How to Advertise on Facebook?

If you want to know how to advertise on Facebook, first of all, you need to understand there're two Facebook advertising costs models involved:-

1). Cost per thousand impressions: Also known as Pay for Views, this cost model is based on the number of impressions your ad generates – the number of times it is shown to Facebook users when they are on the site. As opposed to traditional impression-based advertising models, where you're charged a set amount for a certain number of views, Facebook's cost-per-thousand-impressions model allows you to set the amount of money you want to spend for every thousand views of your ad. How much you bid to spend per thousand views relative to other advertisers will then determine how often you're ad will be shown to Facebook users. The current minimum CPM (cost per thousand impressions) is $0.02.

2). Cost per click: With this pricing model you specify the amount of money you're willing to spend if someone actually clicks on your Facebook ads. You're not charged each time someone simply sees your ad, only when someone actually clicks on it. The cost-per-click model also works on a bidding system, where the more you're willing to pay per click relative to what other advertisers are willing to spend, the more your ad will be shown to Facebook users that you specify in your ad targeting. Note that the minimum cost per click for a Facebook ad is $0.01.

For both of these Facebook advertising costs models, Facebook provides you with a "bid estimator" that shows you the range of bids that currently exist for your particular type of ad and ad subject. If you're just started to learn how to advertise on Facebook, the cost model you should go for in a Facebook ad depends entirely on your business and the type of ad you create. If you're running an ad campaign for a new business where your main aim is to exposure your brand, then having a user perform a specific action (such as buy a product or sign up for a newsletter) may be less important. In this case, a cost-per-thousand-impressions model may work better for you. If your ad's success depends on how many people click on it, such as when you're advertising an event on your Facebook page that people need to respond to, paying only when someone clicks on your ad will make more sense.

Whether you want to learn how to advertise on Facebook, how to advertise on MySpace, or how to advertise on YouTube; as usual, you need to optimize your Facebook ads. This is the crucial part in Facebook advertising strategy. Ad campaigns work best when they are constantly being honed, pruned, and updated in response to how they are performing. By analyzing your ad statistics in Facebook's Ad Manager (Facebook.com/ads/manager), you can test different ad formats and targeting options against each other to keep improving your ads so that they have the best performance possible. If you really want to know how to advertise on Facebook, there are basically Four Methods you can practice to optimize your ad campaigns:-

1). Relax your targeting: If your ad is not generating a large number of impressions, your targeting criteria might be too narrow, in which case you need to broaden the demographics of the groups exposed to your ad.

2). Shift your budget: Consider increasing the budget for campaigns that aren't performing well and decreasing the budget on those that are. Note that because budget is set at the campaign level, if you pause an ad in a campaign that has multiple ads, the budget will still feed to the other ads within that particular campaign.

3. Increase your maximum bid: By increasing your maximum bid, you increase the chances of your ad being show more often. This is especially the case where other businesses' ads are competing for the same target audience.

4). Test your ads against each other: Also known as A/B testing, this method allows you to compare similar ads to see which one performs best (whether in terms of click-through rate or number of impressions). Making small changes to otherwise identical ads means you're able to isolate the variables that are affecting performance. For example, you could use different images in two ads but the same ad copy or use ad copy that's worded slightly differently in each to see which one is more effective. You can also test ads against different demographics. For example, you could have the same ad targeted to women aged twenty-two to thirty as well as to women aged thirty to forty and then compare the stats for each. In this example, you'd be able to identify which age group is responding better to your business proposition.

Once you know how to advertise on Facebook, you will find Facebook advertising strategy is one of the most efficient and effective ways to expose your business.

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