Marketing

Doubling Down on your FB Advertising—Why you Should Spend More Now!

Post by
Rolan Reichel

Doubling Down on your FB Advertising—Why you Should Spend More Now!


Facebook and Instagram are the largest and most widely used social media platforms in the world.  But did you know that in 2019, over $70 Billion dollars were spent on Facebook advertising?  Add up that entire advertising spend, plus the size of their overall marketplace, and FB/IG have collectively emerged as one of the largest online marketplaces in the world along with Amazon (US), Mercado Libre (LATAM) and Alibaba (China).    


Over 7,000,000 businesses of all sizes globally bet big on Facebook and Instagram to acquire new customers because social media delivers. Facebook advertising is based on ROI-driven results, enables access to 2.4 BN users globally, and utilizes in-depth data sets to reach highly engaged potential customers. Everything from demographics, psychographics and interest-based profiles—the books your customers read, the movies they watch and the things they love—are all there to be used for targeting ads.  The bottom line for any business is profit.  If you're not already advertising online, or trying to figure out how and why you should increase your current ad spend, you’re missing out on an historic opportunity for direct-to-consumer brands to grow their business and revenue.  


Three Reasons to Scale Your Facebook Advertising

  • The D2C revolution is happening now for small and medium size brands as the big brand dollars from Fortune 5000 companies are currently on the sidelines in this unique moment.
  • Powerful, proprietary tools are available allowing D2C brands to identify and “own” a market segment and be highly competitive within niche consumer groups. 
  • Retail is not growing, local is a gamble, and these shifts are fundamental and here to stay.  Plus digital has a huge upside - it opens a global marketplace where you can sell to anyone, anywhere on the planet.  


Seize the Day—the D2C Revolution Is Here!  

Over the past few months, we’ve seen sweeping changes across our economy. Consumer spending and online behavior have all radically changed.  Major retailers like Neiman Marcus, JCPenney, and J. Crew filed for bankruptcy.  Meanwhile, travel brands like airlines and rental car companies have all cut their advertising budgets.  By one estimate, $44 BN in online ad spending is simply gone in 2020.  With big brand dollars on the sidelines, now is the time for D2C brands and smaller companies to seize the moment and double down on their FB and Instagram ad budgets to win new customers and grow their bottom line revenue.  The D2C model, pioneered by Warby Parker, Casper and Dollar Shave Club is now easier than ever to achieve with the proliferation of new digital tools, platforms and re-tooled agencies to help brands grow online.  There may never be a better time, so let’s go! 


“Country Music” vs. “Toby Keith” — Reach Niche Audiences and Build Your Customer Base Fast

For D2C brands to compete in broad market consumer segments such as “mom’s” or even “soccer mom’s” is a challenge.  These consumers segments are competitive and advertising inventory is costly.  However, powerful, proprietary tools allow brands to focus on niche consumer segments based on very granular interests and build a loyal customer base.  


Facebook offers 5,500,000 interest based options for targeting consumers.  Interest-based targeting empowers D2C brands of all sizes to find a customer segment based on their unique interests—the things they read, the movies they watch and the things they “like”.  Using Facebook’s Audience Insights Tool is a good first start, and 3rd-party platforms like Custom Social are leveraging machine learning to help identify new users who are potential customers.  Using this approach, brand marketers are able to identify relevant audience segments that are small enough to win over and build a loyal customer base.


“Over the past 3 months, we have doubled our Facebook spend each month, and we are getting more sales out of less advertising dollars.  In one campaign we used a generic targeting option like “Country Music” vs. another, more specific ad aimed at people who liked “Toby Keith”.  Based on the head to head comparison, we sold 3X more t-shirts to the “Toby Keith” fans than fans of just ‘Country Music” so we keep advertising to niche audiences and getting big wins - Power Digital Marketing, Made Here Brand Case Study 



De-risk your business and build sustainable revenue; a digital, direct to consumer acquisition strategy on Facebook offers revenue security.  


While your retail and wholesale sales channels may be flat (retail is down 15% to 20% this year and up to 70% in some sectors like apparel), digital is growing leaps and bounds. According to Forbes, this year has already seen a 146% growth in online retail orders. Platforms serving D2C businesses like WooCommerce (over 5,000,000 eCommerce stores) and Shippo are reaching all-time new highs in terms of customers. The benefits of acquiring customers via FB are 1) you can sell globally; 2) you own the relationship and gather the marketing data enabling remarketing and retargeting and a deeper understanding of your customers; and 3) sustainable revenue that does not rely on other brick and mortar partners. So, if you own or manage a brand and are looking for sustainable revenue, to de-risk your business in uncertain times or build a loyal customer base, Facebook and Instagram advertising are a great place to invest and now is the time!

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