This is a souped up, expanded version of some of the insights I shared at Social Media Club Phoenix last month, when I presented on a panel moderated by @jaybaer and alongside @scottmcandrew, @ktvan,  and @jeffwidman, all of whom are extremely talented and knowledgeable social media marketers.

The Basics of Facebook Advertising

Targeted Ads in the Right Rail – Facebook allows businesses to promote themselves to a specific set of Facebook users.  You can choose to show your ad to specific people based on their location, age, gender, education level, relationship status, specific interests, etc. etc.  You can easily create an ad by scrolling to the bottom of any page on Facebook and clicking on “Advertising“.

Ad Components – Each ad has four elements:

1. Headline (25 characters)
2. Description (135 characters)
3. Image (thumbnail size)
4. A Link – You can send traffic to a specific Facebook page for which you are an administrator or your own website/landing page.

So How Much? – Ads can be run on a cost per click (CPC) or cost per impression basis (CPM).  Typical cost per click rates vary from about 35¢  to $1.65 depending on the level of competition.  You can choose to limit your budget on a daily basis (e.g. $50 per day) to control spending.

Think Banners, Not AdWords – No one is actually searching for the information these advertisements provide like they would in Google, Bing or other popular search engines.  Seth Godin calls this, “interruption marketing.”  A click through rate (CTR) of 0.05% is actually pretty standard for Facebook Ads.  Please note, that is not 1 click in 200 ad impressions.  It’s 1 click in 2,000 impressions.

And Why Should I Use Them? – If your goal is to create awareness, bring in more Fans or to promote a specific event or deal, Facebook advertising should be considered as a component of your plan.  You may also consider focusing on providing amazing content on your Facebook page, enlisting current customer contacts from an email database or those who frequent your site, or even promoting your Facebook presence with other mediums.

Now that you’ve got the basics, here are some tips to help you best utilize Facebook advertising.

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