Do Facebook Ads Still Work for Business in 2021?
By Megan | Jun 21, 2021 (5 min read)
If you think back just ten years, the ways that businesses advertised their products and services were dramatically different. Back then, print, billboards, radio, and television ads were still a huge driving force in the success of a lot of companies.
Today in 2021, deciding how to advertise your business has totally different variables. Google and Facebook are the two biggest players in online advertising, and offer completely different ways to engage and entice new customers.
However, one of the challenges facing a lot of business owners advertising with Facebook ads is that the market can seem overcrowded.
For business owners, and especially those focused on ecommerce, there is a big question about whether Facebook ads still can create attention and sales.
In this article we will look at how Facebook ads can work in 2021 to grow your business, increase engagement, and boost conversions.
Facebook Advertising in 2021
Wondering if Facebook ads are still worth investing your money and time into in 2021?
It’s no secret that younger generations have moved to platforms such as Instagram and TikTok, where engagement through stories and direct messaging has taken over. However, Facebook dominates in the age demographics of 25-54, where a vast majority of users will spend as much as 50 minutes per day.
To see how effective Facebook advertising can be, here are some interesting statistics about Facebook ads in 2021.
- Facebook is still the biggest social media network in the world in 2021. They have over 2.23 Billion monthly average users.
- Facebook ads brought in $31.43 billion in revenue 2020. Despite the uncertainties presented by COVID-19, Facebook’s ad revenues still grew by 4.9% in 2020.
- In 2021, the average cost per action (CPA) for Facebook ads is $18.68. This cost means that it’s now more expensive than ever before to reach your audience on Facebook.
- 26% of Facebook users make purchases after clicking a Facebook ad. Despite the higher cost per conversion, this can still prove enticing for advertisers who are willing to run a Facebook advertising campaign.
- Mobile advertising accounted for 94% of Facebook’s advertising revenue in Q2 of 2019. This statistics means that any Facebook advertising strategy should include mobile ads as a larger part of their ad set and ad campaign.
8 Ways to Advertise on Facebook
With this in mind, let’s take a look at how Facebook can be a useful business tool. In 2021, there are eight different types of ads that Facebook offers:
- Photo Ads: the most popular type, with a photo and some basic text around it
- Video Ads: text above the video ad and then a small video that fits into the news feed
- Stories Ads: run advertisements in the Stories section of the facebook feed
- Carousel Ads: this is a group of photos that users can swipe through in the news feed
- Slideshow: similar to a carousel, but can also show video along with images
- Collection: showcases different products in a collection
- Messenger: can run directly inside the messenger app (this a separate app from facebook)
- Playables: gives people the chance to test our software before dowbloading
Along with the different types of Facebook advertisement available, there are other ways to get the most from a Facebook Ads campaign:
Perhaps the strongest feature of all Facebook marketing is the ability to target particular demographics. While Google Ads can target keywords, the algorithm still struggles to know who is searching. Facebook ads work in the opposite way. Through the Facebook ads manager, you can target a custom audience who fit the criteria of your ideal buyers (age, gender, location, interests, etc.). The more advertising you do, the further your results can be refined through tools like a lookalike audience or tracking click through the Facebook pixel.
Advanced Ad Options
Along with the basic ad format, Facebook also offers boosted posts, follower polls, contact forms, interactive Canvas ads and adaptive video. Whatever your needs, there is a chance Facebook will have something that works for your brand. They also have an excellent insights section called Facebook IQ which can help increase your understanding of consumer trends on Facebook and better match them to your campaign objective.
One thing about marketing that hasn’t changed in generations is that we look to those we trust for buying decisions. Social Media Influencer marketing became a buzzword in 2017, and businesses can no longer afford to ignore the spending influence of organic consumer content. Currently, Facebook and Instagram (owned by Facebook) allow for this sort of native marketing content to reach customers easily.
The most loyal consumers will become a part of a community, and Facebook can be an excellent way to target them. With your business page you can build a following, and through Facebook groups, you can stay current with trends, interests, and questions that your potential customers have. Along with this, Facebook can be an excellent place to garner feedback interactively.
Search Engine Optimization
While Google has stated that social media links don’t count as links for SEO, there is still a correlation. If your business creates interesting, entertaining or valuable content, it will most likely get shared on social media. From here it has a higher chance of people linking to it in blog posts and on websites, which does boost your rankings. Links drive traffic to your site, as well as increasing visibility through keywords, lowering bounce rates, etc.
When it comes to Facebook’s usefulness for businesses, and whether Facebook advertising is worth the investment for businesses in 2021, the answer is a clear yes!
It is worth the time test out a video ad, story ad, carousel ad, and keep refining your Facebook audience in your Facebook ad campaign.
Despite the increase in competition during the past few years, Facebook is still a platform of massive attention, and through the business pages and paid advertising options, it can help a business to flourish.