Automated ads aren’t just for the big boys, and there’s actually more to it than simply driving marketing efficiency. In light of Raconteur’s take on the efficiency vs. effectiveness argument, we wouldn't blame you for thinking efficiency isn't always the perfect solution. But the reality is that automating your ads, irrespective of the size of your budget, can be incredibly beneficial to both your advertising effectiveness and efficiency.
You might be thinking, "This doesn’t really apply to me. My business is tiny and I don’t really have much of an advertising budget."
But you’d be wrong.
If anything, if your budget is a little tight, the question should be: can you afford not to automate your ads?
How using automated ads drives advertising efficiency
Advertising efficiency is all about creating impact and driving traffic to your business – and doing it in the most time- and cost-effective way possible. Manually assessing every Facebook or Snapchat ad you place can be extremely time-consuming. And then there is also the issue of human error. Relying on an individual to remember to place your ad at the right time, in the right place, and at the right cost can be exhausting. And what happens if they make a mistake in the ad? Too late.
Automating your ads means you can schedule weeks or months in advance and still be in complete control.
Because you’re removing the time pressure from the task, it’s much easier to catch any mistakes before you waste your advertising budget promoting the wrong ad.
Oh, and it also frees you up to focus on other, more exciting things!
How using automated ads drives advertising effectiveness
Advertising effectiveness, by contrast, isn’t just about the number of impressions or clicks. It’s about conversion rates and brand awareness. It’s about how much traction your ads are getting with your target audience.
Why is this different? Well, think about it. In reality, it doesn’t matter how often someone sees your ad or clicks on it if ultimately, they don’t do anything with the information. The goal of any good advertising campaign should be about persuading consumers to take action, whether that’s downloading an app, purchasing a product, or signing up for your newsletter or a free trial.
Automating your ads means you’ve got more time to spend on leveraging your content. And because Trustads offers you insights into the performance of each ad, you can easily focus on those ads that are delivering the goods.
But how important is it to use automated ads for your Facebook ads or Snapchat ad campaigns?
Let’s take a look…
Why using automated ads for Facebook drives advertising effectiveness and efficiency
1. How Facebook ads work
OK, let’s start with the basics. How do Facebook ads actually work? Well, in a lot of ways, Facebook ads function like an auction. It’s all about supply and demand. If the demand isn’t there (because users don’t ‘like’ or hide your ad), then expect your ad to cost you more. Equally, if the demand is high and there are fewer competitors doing what you do – you could pay less. Basically, your advertising costs are entirely variable. All you can really control is your advertising spend.
How you approach your Facebook advertising can make a huge difference to your advertising spend.
Let’s look at the two main approaches to advertising on Facebook:
2. CPM (Cost Per Mille)
CPM or Cost Per Mille impressions is when Facebook shows your ad 1000 times on its platform. Although CPM costs overall saw an increase of 8% in May 2020, when this is broken down by campaign objective, only traffic saw an increase (RevealBot). This means that advertising costs on Facebook are actually staying relatively stable.
This can be both good and bad news. On the one hand, it does suggest that the platform has plateaued (reached saturation). On the other hand, the price stability makes it easier for you to estimate your ad spend.
3. CPC (Cost Per Click)
CPC or Cost Per Click is more of an action-based approach. It means you pay only when someone clicks on your ad. The cost of CPC on Facebook saw a whopping 16% increase in the second quarter of 2020 according to RevealBot, which suggests that Facebook might have increased the overall cost associated with this method of advertising.
Other forms of paid advertising on Facebook include CPL (Cost Per Like) and CPA (Cost Per Action).
Automating your ads for Facebook can help you manage multiple approaches in a cost-effective and timely manner. Check out one of our previous blog posts to learn more about duplicated ad sets on Facebook.
Why using automated ads for Snapchat drives advertising efficiency and effectiveness
1. How Snapchat ads work
Snapchat ads can take a surprisingly wide range of formats, including video, photo, and GIF. Unlike Facebook, Snapchat ads are delivered in full-screen, meaning you grab the user’s full attention (how long you can keep it depends on how relevant and appealing your ad is).
Here are some interesting facts from Hootsuite:
82% of Snapchat users are under 32 years old
38% of Snapchat users are not on Instagram
Snapchat adverts are 7x more effective than TV ads for Gen Z (yes, really)
Therefore, if Gen Z is your target demographic, advertising on Snapchat is definitely worth the effort.
Advertising on Snapchat is very different than Facebook, but there are no definitive statistics showing average spend. So, how do you budget your advertising spend?
2. Advertising costs
Wallaroo suggest that the average CPM on Snapchat is under $1, which would make it much more cost effective than Facebook. There are, however, some other facts you need to keep in mind before you jump in.
There is a minimum spend of $5 per day, which seems reasonable.
Until you see that there’s also a Snap Ads Management fee (20% of total ad spend with a minimum spend of $1000 per month). Essentially, this seems to overrule the $5 daily minimum.
The good news is that Snapchat has an array of tools to help you really zoom in on your target audience.
Ultimately, the key to keeping your advertising costs down, while optimizing ad efficiency and effectiveness, is to automate your ads. It’s not just about saving time anymore. It’s not even just about saving money (although it does). But there’s one thing that has to be more important to any business: building positive brand awareness.
And automated ads allow you to reproduce and push ads that really resonate with your audience easily and quickly. They also allow you to spot ads that might be damaging your brand.
It’s a win-win.
Ready to get started on your automated ads journey? We can give your advertising campaign a boost. Start your free 7-day trial today.