Yes, the click through rates on Facebook Advertising are low, when compared to other online marketing forms such as PPC or SEO. The global average for Facebook Advertising is about 0.038%. But there are things that can be done to buck the trend…
The reasons for the low conversion rate are firstly, because people don’t want to be advertised to when they are actively engaging in social activity. Secondly the advert may not be relevant to the people viewing it and thirdly because the ads themselves are not compelling.
Now, while the first factor cannot really be affected, we can have direct effect on the last two.
Relevancy is defined by those who view it, we can have control over this and if when ads were created they are targeted at people interested in areas similar to the product and service offering, it is made relevant. This should be left under review as it is likely that there are further demographic groups that may yield better results.
Regarding whether the ads are compelling enough, it is hard to say until you can see at least two weeks of data. It is important to continue to tweak ads based on user behaviours that appear. This will ensure that we get the very most form the Ads.
What I would say however is that with even a small sized budget millions of people can see these adverts. Now when you compare those figures to other marketing forms you would have to run an ad in a national newspaper, on commercial radio or television to get that type of exposure. Of course these mediums would be a great deal more expensive. So campaigns can be successful in that sense, large amounts of people can be aware of your company, whether they clicked on the link or not.
Also when we talk about click through rates and compare this to PPC or SEO it doesn’t seem like good ROI, however in the case of Facebook ads, the customer has already entered the sales cycle. Whereas with SEO and PPC they still need to move around the site to determine whether the site is relevant or not, before buying product or making an enquiry.
In simple terms, the ads are more targeted and more likely to convert.