Facebook has become the most valuable digital marketplace by offering advertisers the opportunity to reach the most relevant audience to them. Because of this, however, many dealers get caught up in trying to reach the most people at the lowest cost that they forget about what really matters – ROI.
In order for Facebook to provide maximum return on investment, it has to be done right. Too many advertisers focus too much on CPM goals and end up with nothing but cheap traffic.
- Facebook campaigns shouldn’t ever be focused on optimizing CPMs, as these are set by marketplace conditions and ad creatives have little impact on that.
- In order to effectively reduce CPMs, media plans must be altered in-depth. Playing with supply and demand as well as timelines will help lower CPMs, but may also have other effects on campaigns.
- You must strategize the exact mix of Placement, Bid Type and Audience Segment your campaign will target in order to accurately predict your CPM.
- Because Facebook determines CPMs in such a specific way, be very careful not to alter your own business goals and return objectives in search of lowering CPMs.
- Obtaining higher-quality audiences using the Facebook advertising platform’s audience targeting data should always have a direct relationship to costs. It is unlikely that a lower CPM would ever have a higher quality audience than a more costly CPM.
- Ultimately, you must remember to focus on conversions and ROI over all else.
Chasing cheap traffic on Facebook will only leave you with a campaign that reached a large amount of people who ultimately did not purchase anything from your dealership. In order to really get a return on investment for Facebook advertising, you need to be able to reach quality shoppers and convert them.
One way dealers can obtain a 98% VDP goal completion rate is by using LotLinx to manage their Facebook campaigns. LotLinx drives higher conversions by using our own data from the LotLinx automotive platform as well as each individual dealer’s website data in combination with the data provided by Facebook (Polk data) to make sure ads are served only to those who are likely to make a purchase.
If you would like to learn more about how LotLinx is helping dealers obtain quality Facebook traffic, reach out to us today or post a comment below.