FACEBOOK ADS: HOW MUCH DOES IT REALLY COST TO ACQUIRE

CUSTOMERS? BY ETIENNE ALCOUFFE

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FACEBOOK ADS: HOW MUCH DOES IT REALLY COST TO ACQUIRE CUSTOMERS?

ETIENNE ALCOUFFESALES MANAGER @EFFILAB

@ETIENNEAF

Facebook Ads: How much does it really cost to acquire

customers?You need a team of pay per click (PPC) experts and we have a team of 30+ consultants. We

make it our priority to deliver high quality strategic recommendations and management services in order to drive optimal account performance.

KEY FIGURES

3050

million € in advertising spend

under management

7SEM SMO Consultants

Countries covered

● Specialized in AdWords & Facebook Ads

● Created in 2008

● International presence

● Performance based advertising

● Conversion optimization

Why should you use Facebook Advertising in the 21st century?

Facebook is growing rapidly

1. 1.59 billion monthly active users.

2. Leading social network worldwide

Facebook is the third largest website in France

46 % male

54 % female

1) 27 million users.2) 17 million on mobile.3) 11 million daily active users on mobile

• Average age : 22 Yrs

• 18-24 Yrs : 23%• 25-34 Yrs : 28%• 35-44 Yrs : 20%• 45-54 Yrs : 14%• 55-65 Yrs : 15 %

Why should your business advertise on Facebook?

Facebook on mobile:

• 24 millions monthly users• 40% of the time spent on Facebook is on the

News Feed.

• 46% use Facebook while they shop• 47% use Facebook while they cook• 48% while they exercice• 46% during their commute

What will you miss if you are not on Facebook?

• Extremely precise targeting features• Customized ads.• Competitive media prices.• Native experience.

How can you benefit from native advertising?

What objectives can you pursue?

Start by focusing on one advertising objective

Divide your objectives into strategies

LookaLike AudienceInterest targetingBehavior targeting

Demographic

Acquisition

Custom AudienceRemarketing

FansLoyalty

TargetingCampaign type

Conversion Custom AudienceRemarketing

Participation Fans

Facebook is a powerful market research tools

Step 1. Landing page Step 2. Ad Step 3. Reporting

Use Facebook to launch your product / service

Step 1. CRM data Step 2. Lookalike Step 3. Custom audience

Grow your product / serviceWhat is your LTV / CPA ?

Can you scale your advertising without degrading your CPA ?

GROW TRAFIC VOLUME

Through demographic and interest targeting.

BROADEN YOUR ACQUISITION

Go deep into the metrics.OPTIMIZATION

15

How to organize your campaigns like a professional

This account structure is important to suceed

Campaign

Ad Set

Ads

Ad Set

Ads

Inside an E merchant Facebook Account

Nomenclature :

• CA : Custom Audience

• LKLK : Lookalike

• RMKG : Remarketing

Create a campaign per phase / objective

Product MarketFit – Wine

Investment

Demographictargeting

Ad 1

Ad 2

Interesttargeting Ad1

Acquisition –Wine

Investment

CRM

Ad 1

Ad 2

Custom audience Ad1

1

2

The discovery phase

The transition phase

Data

Sales

CPC= 0,36CTR= 2,05%Conversion Rate= 10%CPA= 3,6 €

CPC= 0,45CTR= 3,54%Conversion Rate= 3%CPA= 15 €

Budget: 10 €/day

Budget: 10 €/day

3 ways to think about your budget

What does your situation look like?

Less than$1000• Creativity• Acquisition• 10H/week

$1000-5000$• Website• Content• Social/Search

Over $5000• More

acquisition• Other

Channels• Remarketing

Follow these 7 steps and iterate

1. State the campaign costs.2. State the revenues / learnings of the campaign.3. Describe the tracking process.4. State the number of leads and sales generated.5. State the maximum CPL or CPA.6. Use statistically meaningful numbers.7. Establish a control group.

Set up a digital marketing planning spreadsheet

Don’t throw good money after bad, benchmark KPI’s

How are your conversion rates ?

Can you estimate your CPA based on these figures ?

Take a step back and analyse your data

CPC= 0,36 - Conversion Rate= 4% - CPA= 9 €

CPC= 0,36 - Conversion Rate= 1% - CPA= 36 €

CPC= 0,20 - Conversion Rate= 0,5% - CPA= 40 €

CPC= 0,20 - Conversion Rate= 0,4% - CPA= 50 €

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THANK YOUQUESTIONS?

Facebook.com/etiennealcf @etienneAF

QUESTIONS?

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