Will Small Businesses Still Profit From Facebook Ads in 2020?

Do you feel that the number of responses you're getting for your Facebook ads is decreasing each and every single day? Are you finding it harder to convert people from your Facebook ads into paying customers than you did two years ago? If you think it's hard now, it is going to keep getting harder and harder. Today I'm going to discuss, will small businesses still be able to profit from Facebook ads in 2020?

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Now before we dive into the details on how small businesses can still do well in 2020, let me go over some basic stats.

Facebook has over seven million active advertisers, that's according to Facebook's Chief Operating Officer Sheryl Sandberg.
Active users 2.4 billion.
Facebook has only 342 active users per advertiser.
Not only are more people promoting ads, but it's getting harder and more expensive to get clicks.

Now when you look at the cost in clicks Facebook ads CPC on news feeds have gotten more expensive this year.

In 2008 Q2 as of roughly 0.43¢, in Q2 of 2019 0.64¢. And the CTR of news feed ads has also decreased. In Q2 of 2018 it was 2.24%, in Q2 of 2019 it was 1.20%.

According to Instapage the average Facebook ad converts roughly 9.21% across all industries. You would have to pay on average $64 to get nine conversions. Conversion doesn't necessarily mean a sale either in this context, it could be just collecting an email right?

So it doesn't necessarily mean you're making a positive ROY. So the real question that comes to mind is, hey you're a small business, how can you still profit from Facebook, even though ads in many cases are getting less clicks and is getting more expensive.

Well number one don't go for profit in the first contact with a prospect. It used to be that you would just put ads in front of people, you would send them to your product or service page, try to get them to convert, and boom you're making money.

And that's expensive, a great way that we generate sales now and we found this to be much cheaper is, we first take an ad on Facebook drive them to content our educational piece, educate them.

Secondly use retargeting for your ads for really qualified prospects.

So what I mean by this is, one thing we've done to generate so much revenue from Facebook, this is our highest ROY converting campaign.

When someone visits a checkout page and they don't buy, we create a video that shows them what it would be like if they were a customer.

Now if our main offering was using logic to convince them to buy, our video will use emotions. Why you may be wondering? Well if they didn't convert from logic in the first place, sending them a remarketing campaign or video using logic again probably won't work, so we do the opposite.

If our landing page is try selling through emotions, our remarketing video uses logic. In addition to that we make sure we add in upsells and downsells, which increases the LTV, which allows you to spend more money on Facebook.

The third tip I have for you is use video ads. Video ads are way cheaper to expose your brand to people because even if they don't convert right away you're getting your brand across, and as they say in marketing the rule of seven, the way you build a brand is having someone see and engage with your brand seven times.

If you use video you're going to get way more engagement for the price because Facebook really wants to push video ads over text-based ads.

Fourth use lookalike audiences, once you have people that are converting, use the 1% lookalike audience on Facebook.

Fifth I want you to test different creatives more often. You'll be surprised at the difference in performance when you rotate up your creatives at least once a week.

Heck when I run some of my own campaigns, we're rotating up creatives two to three times a week on the low-end and on the high-end sometimes rotating up creatives daily.

It's that effective by just cranking out so many creatives, you'll find that they don't have as much fatigue and your ROY is better.

Next I want you to keep your ads fresh, it's not just about the, hey here's what my banner is, here's what my creative is.

Next I want you to monitor your ad's frequency. If people keep seeing your ads multiple times, you're either not reaching new people, or people keep seeing your ads without converting.

Those two factors will make your ad score decrease and make your cost increase.

► If you need help growing your business check out my ad agency Neil Patel Digital @

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    18 Responses to Will Small Businesses Still Profit From Facebook Ads in 2020?

    1. Emmanuel Abolo November 23, 2019 at 3:01 pm #

      Curious to know Neil. Let’s go

    2. Emmanuel Abolo November 23, 2019 at 3:06 pm #

      I’ll watch this again

    3. Passive Income Tom November 23, 2019 at 3:10 pm #

      *I think there are still too many people stuck on ads in the traditional sense in magazines and newspapers. The world is changing fast to online marketing.*

    4. PCGYAN1 November 23, 2019 at 3:10 pm #

      Niel I love your every video because you clearly defined.

    5. Rajesh Barwal November 23, 2019 at 3:16 pm #

      How much conversion on fb do you think is good enough. I mean how much ROI?

    6. Rajat Agnihotri November 23, 2019 at 3:23 pm #

      Is there no future of text based content

    7. Raijin God November 23, 2019 at 3:24 pm #

      Hey neil!
      Will you make A Comprehensive video on market research…..
      Thanks..

    8. ashok a November 23, 2019 at 3:38 pm #

      No views but 67 likes how

    9. Kumari Budhathoki November 23, 2019 at 3:45 pm #

      We boosted post and conversion is low everyday for sure. Is there any comprehensive or updated guide to local business like shoes store to work better in facebook?

    10. Qwerty/_ November 23, 2019 at 3:47 pm #

      Hey do you have a course on how to do ads?

    11. Qwerty/_ November 23, 2019 at 3:47 pm #

      Hey do you have a course on how to do ads?

    12. Qwerty/_ November 23, 2019 at 3:47 pm #

      Hey do you have a course on how to do ads?

    13. Qwerty/_ November 23, 2019 at 3:47 pm #

      Hey do you have a course on how to do ads?

    14. Qwerty/_ November 23, 2019 at 3:48 pm #

      Do a vid on the best campaigns/strategy to use in the year 2020

    15. Pablo Gutierrez November 23, 2019 at 4:04 pm #

      I like this process Neil. I will test it on Monday. Thanks!

    16. Jonathan Lau November 23, 2019 at 5:03 pm #

      No we have been shifting away from fb ads. The cost is getting higher and higher due to the increased competition. Back to the SEO grind as we see a higher lift from organic and paid search.

      I am curious to learn more about the about the retargeting strategy. Often time ecom operation just use the FB auto catalog to do the retargeting. You are suggesting to use video to do retargeting. It’s rather hard to execute that piece if our catalog is huge… Any example of that style of ads for ecom company’s

    17. Ebanisteria y restauracion November 23, 2019 at 5:35 pm #

      I dont like Facebook, and i even dont have a Page there,, and i do belive that sooner or later noone Will be there only the bots

    18. formulaone07 November 23, 2019 at 8:35 pm #

      Neil, do LLA’s work for local service business? I thought they were mainly for scaling nationally for eCommerce businesses.

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