How to Make Money with Facebook Ads

How to make money with Facebook ads

How to Make Money with Facebook Ads

Facebook ads are one of the most underutilized forms of advertising, not just on social media, but in all marketing.

It is very easy to target specific demographics on Facebook, far easier than any other platform.

Facebook offers one of the most cost-effective pay per click (PPC) forms of advertising, partially because Facebook has a high click-through rate.

People go on Facebook to like photos, statuses and inadvertently advertisements.

Despite the fact they may have mindlessly clicked on your ad, this is still a win for you.

This short article will elaborate on how to make money with Facebook ads, why they are so effective, and what you can do to maximize returns from each dollar you spend.

How do Facebook ads work?

Facebook’s advertisements are very simple.

You will create an advert, choose a budget, and select a demographic to see your advert.

If you only want to pay, say $100 a week, you may get yourself about 100 clicks.

The average interaction rates on Facebook are $0.97 per click and about $7.19 per 1000 impression.

But what does this mean?

An impression is every time your ad is displayed, whether it is clicked or not is irrelevant.

Using the above figures, you can estimate that on a budget of $100 a week your ad will be seen by approximately 14000 people.

A click refers to every time the ad was seen and, of course, clicked on. Each click could lead someone directly to your website, a link to your product on Amazon, etc.

Again, using the above figures, if you were to spend $100 a week you could expect to get approximately 100 clicks.

This, in turn, means that $100 on Facebook will get you 14000 views, 100 clicks, or a success rate of about 0.7%.

Is that Worth the Cost?

This may sound poor at first, but it is actually very encouraging.

If you have a 10% success rate when someone visits your site on a sale that means you are spending $10 on advertising per sale.

So long as your profit margin on a product is over $10, you are profitable.

If you sell homemade candles for $25, they cost you $10 to produce and $10 on marketing, then what’s left is $5 profit per candle.

Whilst the above example is an average and is just a general guideline of what you can expect when you start advertising on Facebook, you can do far better.

There are so many ways to make your ad more attractive to viewers and bring back old customers.

If you can increase your clicks per view on each advert to rise to just 2% that is almost a 300% rise in sales.

What makes an effective Facebook ad?

So, we have established how effective Facebook ads can be.

We can also see how much money there is to be made by improving their click per view rate.

The best ads can get their click per view rate into the double-digit percentages.

If you were to do that on the example above, say a 15% click rate, you would increase sales by 2000%.

It takes time, practice, and trial and error to improve your adverts.

Here is a good starting point.

Knowing your audience:

You need to target your ads to the correct audience.

Facebook already makes it incredibly easy to choose the demographics of people your advertisements reach, but that is only half the work.

Your advert needs to appeal to that demographic.

The trap many people fall into is making an advert that appeals to themselves.

Just because you may like an advert, doesn’t mean your customers will.

This is the true meaning of ‘the customer is always right’.

Show the customer what they want to see, not just what you want them to see.

Relevant images:

‘A picture is worth a thousand words’ is even truer when it comes to advertising.

An image, especially infographics, is more visually appealing than words and can transfer so much more information quickly.

If you have carved out a niche market for yourself selling blue wool scarves, a picture of the scarf is going to attract more clicks than just the words.

People are not on Facebook looking for blue wool scarves so they will completely ignore your wall of text.

However, once they see your product, they may decide that they do want one.

A relevant, high quality image is the most visually attractive ad.

Word Choice:

The words in the advert are important for getting specific details across like, “20% off all sales this weekend”.

Here are some general guidelines of the word count you should shoot for in your advertisement:

  • 5-word heading
  • 25-word description
  • Do not repeat yourself
  • 15-19 words are ideal

How to Improve Your Facebook Ads Over Time

Your first ad likely won’t be the success you dreamed it would.

That’s fine, it’s even to be expected.

The beauty of Facebook advertising is you can adjust the ads so easily.

You can use several methods of improving your advertisements success rate.

These are the best methods for analyzing your results:

Facebook pixel:

The Facebook pixel is a large part of why Facebook ads are so powerful.

The pixel is a code that you paste on your website and allows you to retarget your website visitors with Facebook ads.

In addition to targeting website visitors, you can go one step further and target potential customers that took specific actions while on your site.

For example, take someone that added an item to their cart but did not go through with the purchase; you know that they were interested in the item, but for whatever reason did not follow through.

You can run an ad offering a discount directly to the customers that have taken this specific action.

This is a great way to improve the efficiency of your ad campaigns.

Audience Insights:

Audience Insights gives you an in-depth look at who engaged with the ads.

This includes the geographic location, demographic, and purchase behavior or your audience.

For example, if you wanted to advertise your scarves to the following demographics: women under 30, women over 45 and men over 50 you will see which demographic clicked the most.

If you spend $25 on each demographic and end up with 10 clicks in total but 7 of those clicks were from women over 45 what did you find out?

That the other two demographics did not perform as well.

You will do far better spending $75 on just the one demographic, women over 45.

A/B testing:

A/B testing, also known as split testing, is the method of running two ads simultaneously with slight differences.

One ad might be lighthearted and take a humorous approach at gaining your audience’s attention.

The other could be a more direct and informative ad.

You would run both adverts for a week and measure which one attracts the most clicks.

The one that does best is used again.

You may then compare that winning one to a different advertisement in another A/B test.

This can be repeated constantly until you are satisfied with the ad’s success rate.


Retargeting ads are shown to someone who has already showed interest in your content.

Let’s say you posted a video on Facebook about your company and it got 2000 views.

You could choose to show your next advert to only people that watched the video.

You can even go one step further and show your ad to just the people who watched at least half of the video.

Like targeting an audience using the Facebook pixel, this is a way to increasing the probability of your ads converting.


Hopefully you have a clearer idea of just how to make money with Facebook ads successfully.

It will take a little trial and error, but if you keep what this article has said in mind you will start to see noticeable improvements in no time at all.

Good luck!

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