Which one is better? Facebook ads manager or business manager?

 

INTRODUCTION

Facebook ads manager is a tool provided by Facebook which has helped many individuals as well as businesses to run and scale up themselves and it has become a new avenue to reach prospectus customers with ease and comfort. Before Facebook ads manager, there were only countable avenues to advertise businesses, like advertisements on paper, billboards, brochures, etc. To be precise, the print was the only avenue for businesses to advertise their products or services in order to reach prospects and potential customers. There was also another medium of advertisement which was television, but that option was feasible for massive and established businesses, as the cost for advertisement used to be way higher than the expectation of startup businesses.

So, for startup businesses in today's world, advertisement has become an easy window to advertise their products and services. But business manager and Facebook ads manager has so many terminologies as well as different budget optimization types which are essential for anyone who is keen to learn and then earn bread through Facebook ads manager.

But before jumping into the details and terminologies of Facebook ads manager, let us clear one thing, there are two types of ad accounts

v  Personal ad manager (Attached to your profile)

v  Business ad manager (better for business)

You can manage and run ads through your personal ad manager but it has few limitations, it cannot be shared with businesses or an advertiser cannot share his account with others, as it is their personal profile, ad manager. So if a business wants to acquire your business or your page you cannot basically sell that account to them, on the other hand, a business ad manager is a separate tool that is segregated from the personal account, so therefore if at any stage the person wants to share or sell his page to any business, he can easily do that without any hesitance.

IMPORTANT TERMINOLOGIES

There are few terminologies on Facebook ads manager that are essential for any advertiser who is aiming to run ads and wants to run them effectively, before learning the advertisement process on Facebook few things and terminologies are needed to be understood.

• Impressions
• Click-Through Rate (CTR)
• Click to conversion rate
• Cost per 1,000 impressions (CPM)
• Cost per link click (CPC)

 

IMPRESSIONS

With respect to the advertisement, there have always been two essential things which are important to note as well as differentiate. Impressions and reach, both are important yet needed to be differentiated otherwise advertisers won't get effective and desirable results. Reach is the total number of people who see your content on the other hand Impressions are the number of times your content is displayed, let say we ran an ad through Facebook ads manager and it got reached 1,000 people, this is your total reach. Impressions on the other hand are how many times one user out of those 1,000 people has seen or go through your ad. For example, one user sees your ad on his Facebook timeline, this is one impression, then he scrolls down and again went up to your ad to see details, or your contact number this is two impressions from the same user, he scrolls down again and again, he feels he has left some details to be noted, therefore he scrolls up again to see your ad copy again, that is three impressions from only one user. So with impressions, the bottom line is, Impressions are not unique.

CLICK-THROUGH RATE (CTR)

This is a very important metric to be noted especially if your Facebook ads manager main objective is conversion, not any other campaign type. Click-through rate is simply how many people have seen your ad and click onto your CTA (Call to Action), CTR has to be high as it determines the percentage of people who have actually clicked on your ad and lands on your website. To calculate CTR divide the total number of link clicks with a total number of impressions, and then multiply it by X100 to know the percentage.

CLICK TO CONVERSION RATE

This metric is essential for businesses that run ads with the objective of conversions, meaning sales. So if your ad campaign objective is to get as many conversions as possible then it is a must metric to be added in your Facebook ads manager campaign. Click to conversion rate is how many people have actually converted after seeing your ad. Means, after seeing your ad they click through your ad, they see the product which you have advertised, they liked your product and finally, they purchased it from you. This is what conversion is, this metric is also measured in percentage, so your click to conversion rate has be high.

COST PER 1,000 IMPRESSIONS (CPM)

For advertisement on Facebook ads manager, you are basically biding to get impressions, how much you are willing to spend to reach a certain impression level, in Facebook advertising you are biding over 1,000 impressions, how much you are spending to get to see your ad to 1,000 people. This varies from advertiser to advertiser, some get low CPM some get high CPM but none of them really matter because CPM varies according to your creative or visuals as well. If your visuals are profound then your CPM will be low as you already have invested in your creative to increase the look and feel of your ad copy. So, how to calculate CPM, the total amount you spent on your campaign divides by the number of impressions you got and multiply it by 1000.

COST PER LINK CLICK (CPC)

Cost per link click is basically how much you are willing to spend on your Facebook ads to get website visits. In CPM you are bidding for impressions but in CPC you are bidding for website visits. Both are different things, if the objective of your ad is to get as much impression on your ad copy then CPM should be your way to go thing, but if your objective is conversion, then you must calculate CPC to get as many links clicks as you want. Facebook will optimize your ad budget to get as many links clicks as possible within your budget.

So, these were the important terminologies that are important for everyone to know before jumping into the Facebook ads manager.

Now let us talk about Facebook ad manager and different types of budget optimization, which helps advertisers to run an effective campaign. There are three types of budget optimization on Facebook,

1.      Adset Budget Optimization (A.B.O)

2.      Campaign Budget Optimization (C.B.O)

3.      Lifetime Budget Optimization (L.T.B)

 

1.     ADSET BUDGET OPTIMIZATION (A.B.O)

So before I explain A.B.O to you, let me explain to you the structure of a Facebook ad manager, So there are basically three sections in an ad manager

v  Campaign (Where you define your objective)

v  Ad set (Where you define, targeting, budget, placement, bid)

v  Ads (Visuals / creative of the ad copy)

Budget optimization works at…….. yes, you got it right. At ad set level. Any budget optimization campaign will be set up at an ad set level.

Adset Budget Optimization is an option where you choose bidding manually, which means if your total budget was $30 and you have three ads to be run, you can manually place bids for each of the ads. For example, you want to spend $15 on Ad 1, $5 on Ad 2, and $10 on Ad 3. Now the spending will be done according to your set bidding type.

2. CAMPAIGN BUDGET OPTIMIZATION (C.B.O)

C.B.O on the other hand is an automatic bidding optimization tool, meaning Facebook itself decides which ad deserves more spending and which doesn’t. You have to turn on the C.B.O option first from the edit section of Facebook ads manager, then you set your total ad spend budget at the campaign level. For example, your total budget was $30 per day and again you have three ads to be shown. When C.B.O is triggered, Facebook from itself would determine which ad deserves more ad spending. This algorithm works on the basis of ads relevance. Facebook ads manager tracks three metrics on ads relevance to determine the performance of an ad, one is Quality ranking, how good the creatives of the ad is, second is engagement rate, how much persuasive the ad copy is, and last is the conversion rate, how many are converting through the ad. After all these metrics Facebook decides which ad deserves more spending and which doesn’t.

3. LIFE TIME BUDGET OPTIMIZATION (L.T.B)

L.T.B is a very efficient budget optimization tool, but it works commendably well provided you have enough data of your audience. What L.T.B do you can choose a timeline of ad display. For example, You have data of your potential and prospectus customers and you have noted that the majority of your audience spends time on the Facebook timeline from 11 am to 6pm. L.T.B lets you choose an ad display timeline and spends on each ad accordingly.

NOTE!

While choosing between A.B.O as well as L.T.B one must make sure that on Facebook ads manager edit section C.B.O is off, otherwise your budget optimization campaign will be C.B.O automatically and you will be proof less about what is happening to your campaign.

CONCLUSION:

Facebook ads manager as well as other social media platforms are becoming a new avatar for small businesses to scale their online business through advertisement. But one thing which cannot be forgotten is that in order to scale up your business through social media ads, they must know all thicks and thins of the advertisement process otherwise these platforms can become the most inefficient window for businesses to scale up their business. Try to understand the bidding process, placement of bidding, and especially the targeting on Facebook ads manager, they cannot be done or select randomly, as these will determine the scale-up probability of your ads on Facebook as well as on other social media platforms. Hence, Facebook ads manager is a simple tool that one can master with time, but targeting, bidding, and placement are conceptual metrics that demands an immense level of accuracy otherwise you can spend as much over your ads as you want but at the end of the day, you won’t get effective results.

We hope that all the information has helped you to generate a basic understanding of Facebook ads manager as well as business manager. If you have any queries related to social media ads you can reach us on our website as well as on our Facebook page, till then wait for our new updated and interesting articles. This was Digital Rationale, and we see you in the next post.