Cost-Efficient Advertising on Facebook and Instagram
With challenging times ahead for many, it has prompted businesses to reduce marketing budgets and find cost-effective ways to engage customers. In the following article, I discuss why Facebook and Instagram advertising is exceptionally efficient for businesses targeting the New Zealand market during recessionary periods.
As two of the most popular social media platforms globally, Facebook and Instagram boast over 3 billion combined monthly active users. They offer various ad formats, such as images, videos, carousels, stories, and more, effectively showcasing your brand, products, or services. Features like Facebook Shops and Instagram Shopping allow customers to browse and purchase products directly from the platforms.
A key advantage of advertising on Facebook and Instagram is the ability to target ads based on demographics, interests, behaviours, and actions, increasing the likelihood of reaching qualified leads while minimising wasted impressions and clicks. Custom audiences and lookalike audiences help reach existing customers or those similar to them.
Facebook and Instagram let you control your ad budget and bid, choosing how to pay for your ads (CPM, CPC, CPA, or CPM-ACR) and using different bidding strategies to optimise ad delivery and performance. Detailed analytics and insights help track ad performance, with tools like Ads Manager, Business Suite, and Insights to monitor metrics such as reach, impressions, clicks, conversions, cost per result, and return on ad spend (ROAS). Split testing and campaign budget optimisation allow experimentation with ad variables and budget allocation to high-performing ads.
A Brandwatch report reveals that while Instagram's cost per click is higher than Facebook and Twitter, Instagram ads are highly effective at driving engagement and conversions, with an average order value of $65. LinkedIn's high CPC reflects its highly targeted professional audience, boasting a conversion rate of 6.1%, three times higher than any other social media platform.
For the New Zealand market, Facebook and Instagram have a significant user base, with 3.2 million and 2 million monthly active users, respectively. New Zealanders spend an average of 1 hour and 53 minutes per day on social media platforms, providing ample opportunity to capture their attention through ads.
In summary, Facebook and Instagram advertising is cost-efficient for businesses targeting the New Zealand market during economic downturns, allowing for precise audience targeting, budget control, and valuable performance data. These platforms can help businesses achieve a range of marketing objectives, from brand awareness to sales growth.
