How do Facebook Ads work?

Facebook has become one of the most widely used channel for most advertising agencies here in Thailand. The sheer number of active users makes Facebook (along with Instagram) one of the best ways to connect with your target audience. With a user-friendly interface and automated bidding models, it’s clear to see why Facebook Ads are the number one choice for most digital marketing companies.

Number of Facebook Users in Thailand

The number of active Facebook users according to NapoleonCat.com for July was 59,200,000, which makes up almost 85% of the total population. 52% of these were women and 25 – 34 is the most popular age bracket.

Another important metric that should be considered along with the number of active users is the average time spent on social media.

Statista.com shows the average time spent on Social media in Thailand at 2.48 hours, which combined with the number of active users make Facebook a great place to reach your target audience.

Difference Between Facebook Ads and Facebook posts

This is a question we get asked a lot, and one we have explained in more detail in here. Some of the main differences between Facebook Ads and Posts are;

Facebook AdsFacebook Posts
Only show to people in your target audience  Posts are visible on your Facebook page for all to see
Once the Ad campaign is finished the Ad is no longer visiblePosts remain on your Facebook Page wall (unless deleted)
You can control the type of person the ad will show to, in line with your Ad ObjectiveOrganically shows to a percentage or your Facebook page followers
Can test multiple Ad creatives and audiences in one campaignOrganic posts not made for testing
Charged for each interaction (based on the campaign objective)No charge for any organic posts

Types of Facebook ads

There are many different types of Facebook Ads available, depending on what you are trying to achieve. Facebook simplifies this process by separating the Ad objectives into 3 stages of the customer journey, Awareness, Consideration, Conversion.

Understanding these simple steps and choosing the correct campaign objective is vital for long-term success.

The current options when creating a campaign in Facebook Ads

Each campaign objective will determine how Facebook spends its daily budget. For example, if you are an established brand and launching a new product to your existing customers, you may set up a Reach campaign, to go out to all existing page followers.  If your goal is to generate some feedback on a post or a special offer you may decide to choose either the Engagement or Messenger objectives.

Audience Targeting

Every time you engage in a Facebook activity, whether that’s liking a page, joining a group, or commenting on a picture, Facebooks algorithm is taking note and forming a profile. Your profile is made up of your personal information (demographics) age, gender, location, status etc., along with your interests. These interests form a huge list of options that advertisers are able to choose when creating an audience.

Ad creatives

Your Ad creative is the image or video you choose to show to your audience. Along with your caption (the text above the image or video), this will largely determine how successful your Ad will be in terms of the engagement rating. If your caption is too long or boring, or your video is too slow its likely you’ll see a low Engagement rate ranking.

You can see Facebooks verdict on you campaign creatives in the ‘Ad Set’ level.

Facebook wants to help promote the best Ads to its users, so by encouraging a better Engagement rate, Facebook is more likely to show your Ad to more of your audience, and in turn, lowering your campaign costs.

Measurement

The measurement or ‘Results’ on Facebook will relate to what campaign objective you have chosen. Video views will charge per view (Thruplay), Lead Generation by the number of leads, Reach by the number of people reached (per 1,000).

An example of how Results are counted in different campaign objectives.

So, it’s very important when planning your campaign budget that you not only choose the correct objectives, but also how much budget to allocate to each campaign to get the optimum performance.

Attribution also plays a key role as this will determine when Facebook begins to allocate a ‘result’ in your account. The default setting for most campaigns is 28 day click or 1-day view, which means if you ran a conversion campaign, and someone visited your website through a Facebook Ad, but then didn’t actually convert until 28 days after, it would still be counted as one conversion. Similarly, if they viewed your Ad on Facebook (but didn’t click) and then visited your website within 24 hours and converted, it will also be counted as one conversion,

Facebooks ‘Pixel’ is equivalent to Google Analytics, in that advertisers generate a unique pixel, in the form of an HTML tag, which is placed on the target website or landing page.

Once the Pixel is successfully installed Advertisers are able to see the events on the website and create custom conversions in line with their campaign goals.

Flexibility and performance

What makes Facebook Ads so popular is the flexibility. There aren’t many businesses that wouldn’t benefit from some kind of Facebook Ad campaign and the structure of the different objectives makes building even complex accounts much easier.  The introduction of CPAS Collaborative campaigns, now enables advertisers to connect their Ad accounts directly to their marketplace platforms such as Shopee and Lazada, which makes selling online that much easier.

But the overriding factor that makes so many digital marketers use Facebook Advertising is performance. Whether you want lots of low-cost leads or less, highly qualified ones, traffic to your website or landing page, or views on your promotional video, the cost and performance of Facebook ads generally beat all other advertisers hands down.

What ads don’t work on Facebook?

If we had to point out some disadvantages for Facebook Ads, it would be targeting a super niche audience. Usually, when running B2B campaigns where the product or industry is very niche it can be hard to choose audiences based on the preset interests available. In these cases, advertisers may see better results through Google Search Ads, but if searches are also limited then you may need to build some awareness through broader audiences (on Facebook).

Summary

In summary, Facebook (and Instagram Ads) feature in nearly all of our marketing campaign strategies here at Phoenix Media for the simple fact that they outperform most other channels. Whether you’re looking to sell online, generate enquiries, or just build an audience for remarketing purposes, Facebook Ads provide a relatively easy way for Advertisers to run a successful campaign.

If you’re interested in learning more about Facebook Ads or have a campaign that you would like us to help manage, get in touch with one of the team today.

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