Will Small Businesses Still Profit From Facebook Ads in 2020?

Will Small Businesses Still Profit From Facebook Ads in 2020?



Do you feel that the number of responses you’re getting for your Facebook ads is decreasing each and every single day? Are you finding it harder to convert people from your Facebook ads into paying customers than you did two years ago? If you think it’s hard now, it is going to keep getting harder and harder. Today I’m going to discuss, will small businesses still be able to profit from Facebook ads in 2020?

RESOURCES & LINKS:
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Why Your Facebook Ads Don’t Work (and How to Make Them Profitable) : https://youtu.be/HYmWww4e3Is
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Now before we dive into the details on how small businesses can still do well in 2020, let me go over some basic stats.

Facebook has over seven million active advertisers, that’s according to Facebook’s Chief Operating Officer Sheryl Sandberg.
Active users 2.4 billion.
Facebook has only 342 active users per advertiser.
Not only are more people promoting ads, but it’s getting harder and more expensive to get clicks.

Now when you look at the cost in clicks Facebook ads CPC on news feeds have gotten more expensive this year.

In 2008 Q2 as of roughly 0.43¢, in Q2 of 2019 0.64¢. And the CTR of news feed ads has also decreased. In Q2 of 2018 it was 2.24%, in Q2 of 2019 it was 1.20%.

According to Instapage the average Facebook ad converts roughly 9.21% across all industries. You would have to pay on average $64 to get nine conversions. Conversion doesn’t necessarily mean a sale either in this context, it could be just collecting an email right?

So it doesn’t necessarily mean you’re making a positive ROY. So the real question that comes to mind is, hey you’re a small business, how can you still profit from Facebook, even though ads in many cases are getting less clicks and is getting more expensive.

Well number one don’t go for profit in the first contact with a prospect. It used to be that you would just put ads in front of people, you would send them to your product or service page, try to get them to convert, and boom you’re making money.

And that’s expensive, a great way that we generate sales now and we found this to be much cheaper is, we first take an ad on Facebook drive them to content our educational piece, educate them.

Secondly use retargeting for your ads for really qualified prospects.

So what I mean by this is, one thing we’ve done to generate so much revenue from Facebook, this is our highest ROY converting campaign.

When someone visits a checkout page and they don’t buy, we create a video that shows them what it would be like if they were a customer.

Now if our main offering was using logic to convince them to buy, our video will use emotions. Why you may be wondering? Well if they didn’t convert from logic in the first place, sending them a remarketing campaign or video using logic again probably won’t work, so we do the opposite.

If our landing page is try selling through emotions, our remarketing video uses logic. In addition to that we make sure we add in upsells and downsells, which increases the LTV, which allows you to spend more money on Facebook.

The third tip I have for you is use video ads. Video ads are way cheaper to expose your brand to people because even if they don’t convert right away you’re getting your brand across, and as they say in marketing the rule of seven, the way you build a brand is having someone see and engage with your brand seven times.

If you use video you’re going to get way more engagement for the price because Facebook really wants to push video ads over text-based ads.

Fourth use lookalike audiences, once you have people that are converting, use the 1% lookalike audience on Facebook.

Fifth I want you to test different creatives more often. You’ll be surprised at the difference in performance when you rotate up your creatives at least once a week.

Heck when I run some of my own campaigns, we’re rotating up creatives two to three times a week on the low-end and on the high-end sometimes rotating up creatives daily.

It’s that effective by just cranking out so many creatives, you’ll find that they don’t have as much fatigue and your ROY is better.

Next I want you to keep your ads fresh, it’s not just about the, hey here’s what my banner is, here’s what my creative is.

Next I want you to monitor your ad’s frequency. If people keep seeing your ads multiple times, you’re either not reaching new people, or people keep seeing your ads without converting.

Those two factors will make your ad score decrease and make your cost increase.

► If you need help growing your business check out my ad agency Neil Patel Digital @ https://neilpateldigital.com/

►Subscribe: https://goo.gl/ScRTwc to learn more secret SEO tips.
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https://youtu.be/7tACyXcjZF4

#DigitalMarketing #NeilPatel #FacebookAds

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49 Thoughts to “Will Small Businesses Still Profit From Facebook Ads in 2020?”

  1. When he said it’s gonna get harder and harder in 2020 7 months ago….boy oh boy did he say it!

  2. Also, for targeting, I've found that there's of course more engagement when you start with engagement as your goal, whereas sales as a goal also sees higher ROI no matter what audience I am targeting. That may be something specific to the live events industry, but so far I haven't seen much of a difference in cost and effectiveness when I set up our Facebook ads as a funnel rather than just with sales in mind.

  3. How can you vary up content if you're working with specific approved copy and limited images?

  4. Facebook page after promotion it will get page likes..but ,post will not be engaging to the audience it is too bad

  5. please make more informative videos like this

  6. Does tip 1 work for contractors?

  7. Hi Everyone!
    Usually which performs better in Audience Detail Targeting to promote MMO offer, 2 to 3 targets or 7 to 10 targets?
    What i mean by this is: Narrowing down too much is better or keeping the Audience broad?

  8. Hi, Neil If I´m running Facebook ads as an agency how much do I have to charge for my services? Do I have to ask for a percentage of the ads budget or just a weekly or a monthly fee?

  9. Accurate video Neil! Gone are the days of straight selling with Facebook ads. I think we are moving more towards educating then retarget those of view the educational post with more education then sale, keep up the great posting!

  10. I am a web designer..if i wanted to get clinets through fb ads..what i have to concentrate in !

  11. How to get your first sales from fb ads?

  12. Interesting video, good information. I am frustrated & totally fed up with trying to get results from FB ads. I have only spent £300 $393 but its for me as i am just starting out and have limited budget. I watched many youtube ads about the methods of making FB ads etc but got ZERO response sales from running about 10 ads. Not one message or sale from anyone!!! My reach was over 17,000 but only got 12 clicks to my page. I targeted people connected with my line of business. I produce professional hand painted porcelain bespoke wash basins…….. I also produce luxury hand made bird cages, also got the same results from runnings FB ads. ZERO. Has anyone any ideas? I dont expect huge results but at the very least a few inquiries would have been good from potential customers…Its so frustrasting.

  13. Instead of CTR in video you have written "CPR" It's okay, but I am just telling you after noticing that.

  14. Good video sir
    Hi I am asraful from India

  15. Very good tips pretty straight forward approach

  16. Lotta noise on FB & it is much more difficult than it was even a year ago. Spot on Neil. That checkered pocket on your shirt was what caught my eye and why I clicked lol. Great breakdown as usual Neil.

  17. Patel bhai is rocking !!
    Keep it up

  18. Hi Neil, thanks for this very informative video, your pace is a bit slower now and the info much easier to absorb!

  19. Still going very strong here💪

  20. Hi i am trying to Contact the 10k profit team and It is impossible ! Email doesn’t work, thé contact form doesn’t work, thé phone Numbers is directly on messagery…
    Please help me to reach you. By mail is the Best regards

  21. we should use tags in image to and where elsa can we use

  22. Hey Neil! Just subscribed ur channel 2 days back and completed watching 25% of ur videos…
    U r veralevel man

  23. Hey Niel, how do I search for Internet marketers groups on instagram.

    What keywords help find them and what giveaway would attract then for my email optin. I want to sell them traffic generating affiliate products.

  24. Hey Neil, caught that piece of gold at 3:20 to 3:40. That is some next level material right there. I'm sure that most people don't even split their ad efforts into those categories. Most of your following is probably very one sided I bet and don't even know the difference between selling on logic vs emotion. Might be a great piece of content to put out in 2020. Thanks for the video!!

  25. This guy needs to specify where he is talking about. This may be applicatable in US, UK but other parts of the world Facebook is a GOLD MINE!

  26. Yep FB is getting way too expensive. A few years ago I could boost a post and get 15,000 reach for £10 now I'm lucky to get 500 reach. It's gone the same way as Google Adwords. Best return for me is on my email list. Spend time building your list and you know everyone will see what you post – not just 6% on FB.

  27. My facebook business account disabled for policy violation. How can I enable?

  28. hey Neil ……….Started using your uber suggest tool
    It is really a great tool
    but took me a while to realize
    Great tool

  29. Facebook Ads approval has become so stringent that it is a nagged just to get it advertised. Edit and re-editing until it gets right. I am out of there!!!

  30. Neil, do LLA's work for local service business? I thought they were mainly for scaling nationally for eCommerce businesses.

  31. I dont like Facebook, and i even dont have a Page there,, and i do belive that sooner or later noone Will be there only the bots

  32. Hello Neil Social Media Manager 👋🏼. How is your day going??

  33. No we have been shifting away from fb ads. The cost is getting higher and higher due to the increased competition. Back to the SEO grind as we see a higher lift from organic and paid search.

    I am curious to learn more about the about the retargeting strategy. Often time ecom operation just use the FB auto catalog to do the retargeting. You are suggesting to use video to do retargeting. It's rather hard to execute that piece if our catalog is huge… Any example of that style of ads for ecom company's

  34. Yes they will.. why not?
    Unless Facebook wants to shut down.

  35. I like this process Neil. I will test it on Monday. Thanks!

  36. Do a vid on the best campaigns/strategy to use in the year 2020

  37. Hey do you have a course on how to do ads?

  38. We boosted post and conversion is low everyday for sure. Is there any comprehensive or updated guide to local business like shoes store to work better in facebook?

  39. No views but 67 likes how

  40. Hey neil!
    Will you make A Comprehensive video on market research…..
    Thanks..

  41. Is there no future of text based content

  42. How much conversion on fb do you think is good enough. I mean how much ROI?

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