How To Make The Most Of Facebook Advertising

Marketing is a non-negotiable part of running a business, whether you choose to rely on social media marketing services or word-of-mouth success.

Facebook, now also known as Meta, is one of the most popular social media platforms for marketing and advertising purposes but running a proper marketing campaign on this platform doesn’t come free or cheap.

However, there is a way to know whether a Facebook ad campaign would result in profitable sales, before investing money into said campaign.

For instance: if you are an accountant and wondering whether a Facebook campaign will bring in additional clients, you should first consider the Lifetime Value of profit that the average client might bring.

Consider the following example:

  • Annual Accounting Fee – $1,500
  • Average Engagement – 6 years
  • Gross Profit Margin – 88%
  • Lifetime Value of Client – $7,920 ($1,500 x 6 x88)

This then means that the average client lifetime value is $7,920 and you can now calculate how much to spend on a Facebook campaign each month and still make a profit. (The campaign example relates to an advertising campaign for an accounting webinar).

Consider the following:

  • Monthly ad budget – $1,000
  • Cost per click – $1.72 (average FB CPC)
  • Clicks expected – 581 ($1000 / $1,72)
  • Conversion rate (to a webinar) – 9.21% (average FB conversion rate)
  • Number of prospects / leads – 54 (581 x 0921)
  • Percentage that actually attend – 25% (13)
  • Close rates to new clients – 15%
  • Number of new clients – 2 (13 x .15)

The net profit of the above example can be calculated as follows:

  • # New clients – 2
  • Profit per client (LTV) – $7,920
  • Total gross profit from campaign – $15,840 (LTV x 2)
  • Total net profit (subtract ad costs) – $14,480

In this situation a $1,000 monthly ad budget for Facebook marketing would be extremely profitable.

For more information on how to calculate profit margins using the different scenarios of Facebook advertising, contact me today:


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