• Serena Trinh

How Facebook Ads Works on Small Business

Updated: Jul 8

With the flourishing of Social Media platforms, there is an increasing number of new social media platforms which are occupying the market. This doesn’t mean people use Facebook less; instead, they spend more time on multiple Social Media platforms. This demonstrates the fact that Social Media advertising or Facebook Ads is still an initial marketing strategy for all small businesses.

Statistics of Facebook Advertising on Small Business


74% of Facebook users use the platform daily.

This is quite a good sign for small business owners because they know where your potential customers are and all they need to do is to approach them.


90 million small businesses are using Facebook.

This number is counted until 2019 by Facebook Reports. Therefore, this might be a flaw if you don’t have your business page presented on Facebook.


Over 6 million businesses are using Facebook Ads to reach their potential customers.

Will you let your rivals overpower your business? This proves the fact that many businesses are realising that Facebook Ads is an important part of their marketing strategy, helping them remain competitive in the intense market.


The average prove for Facebook Ads decreased 6% in 2019.

This is a good news for small businesses with tight budgets on marketing.


Facebook Ads impression increased 33%.

Facebook is becoming more precise on targeting audiences and matching them with the right content; meaning that CTR is increasing. Every penny you spend on Facebook Ads will be worthy.


Facebook Ads revenue keeps increasing.

Many small businesses are relying on Facebook Ads to reach their customers, while advertising on Facebook is becoming more effective. This number is expected to keep increasing in the future.




Why Small Businesses are Beneficial from Facebook Ads


Their potential customers are on Facebook.


Facebook has more than 2.45 billion people log in to the platform every month, while 74% of them actively use Facebook daily. Facebook has the largest number of users, compared to other social media platforms, which is used by all ages. Although seniors are the smallest user group, Facebook is the most popular social network among seniors .


Facebook Ads is becoming more effective than ever.


The new algorithms from Facebook allow users to find content more precisely. Facebook matches users with the right content that they are truly interested in. That means when users see Facebook Ads, there is a high chance that these users turn into customers. While the conversion rate increases, the cost for Facebook Ads decreases. Facebook Ads is one of the most effective ways to advertise, with high ROI.


Facebook Ads is best suited for tight budgets.


Compared to other means of advertising, Facebook Ads is one of the cheapest. A Facebook Ads campaign can be started by a small amount of money, but has a huge impact on your business. This will help business owners, who are considering the marketing budgets, to be more confident to pick their marketing strategy.



How to Use Facebook Ads for Small Business


Before running a Facebook Ads campaign, you need to answer those questions to make sure you campaign will success

  • What are your marketing goals?

  • Who is your target audience?

  • What type of Ads format for your campaign (video, single image, carousel, ect)?

  • Where do you want your Ads to be seen on Facebook?

  • What is your budget?

  • Do you have resources to create your creative content?

  • How will you track the performance of your campaign?

After answering those questions, you are ready to make a huge change to your reputation.



Key Consideration for Small Business when running Facebook Ads


Have clear marketing goals to your campaign.


Many small businesses fail on Facebook Ads because they don’t know what they really want to achieve, or they want to achieve everything. The recommendation is to choose one primary objective and one secondary objective and put efforts and money on these.


Understand your customers’ wants and needs.


There is no better strategy than giving customers exactly what their wants and needs. To do that, take your time to learn your customers: what are their needs, what are their expectations, what are their fears or problems, etc. This helps you to increase the chance of success in Facebook Ads.


Understand Types of Facebook Ads


Facebook Ads might be complicated because you have been overwhelmed by the ads types and ads placements. However, it is not as difficult as you might think. Have a quick research and you will understand all of those terms. Choosing the right ads type and ads placement plays an important contribution to the success of your campaign. So, please be aware of this!


Choosing the right Agency


In some cases, business owners don’t have time to control all the activities. In additions, there are many jobs involved in a Facebook Ads Campaign, such as Research, Strategy, Planning, Creative, Analysis, ect. It is better to hire an experienced agency to do the job for you. There are many agencies out there having great skills to let your business become reputable. Choosing the one fits your style is a recommendation to ensure you spend your budget efficiently.


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