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How To Make a Profitable Facebook Ad Campaign

written by Guest Blogger on February 23, 2011

The Ultimate Online Profit Model

The following is a guest post by Dan Palanchuk. Dan is a 15 year old affiliate marketer generating $xx,xxx a month. Check out his blog for tips, strategies, and case studies.

When I started doing facebook PPC last month, I quickly learned the system and the basics. There are many different ways to target in Facebook ads that there is an endless number of possibilities. It may be confusing at first, but once you test it a few times, you’ll be able to understand it.

To begin, you have to have a Facebook account. Then go to http://www.facebook.com/ads and then click on “or manage exisiting ads.” After you do so, go to “Billing” to input your information for payments. Now go back to the main interference, click on “Create an Ad” and this is where you make Facebook ads.  Now that you have all that ready to go, you’re ready to make your first campaign.

Step 1:

Go to your affiliate network and look at all the available offers. (If you’re not signed up to one, hit me up, and I’ll get you into EWANetwork.) Offers that generally do good on Facebook is dating, mobiles, email submits, and lead gens. Talk to your affiliate manager to see what’s doing good on Facebook.

Step 2:

Now that you have picked an offer, you can either direct link or create a landing page. Landing pages are for the more experienced affiliates, so I recommend you to stick to direct linking.  Copy the url from the affiliate network and paste it in Facebook ads in “URL.” Do you notice how I put text after the url so that I could track which offer is converting the best for me and is getting me the most clicks. I usually type in “age-age-female/male-country-1″ The one stands for the ad copy so for the next one, I’ll have 2, then 3, and so on.

Step 3:

This is where you have to get creative and make a good ad copy. Something that will get the user’s attention with 25 characters. I wrote down a simple ad copy to show you how it can be done. The only way you’ll succeed on facebook ads and in affiliate marketing in general is by being creative and creating multiple ad copies to find the best one.

Go to google, bing, flickr to find as many images as you can for your offer. Make sure at the end of the text to make the user click the ad by saying “Click here” or something else that convinces the user to click on the ad. This step is the most important of all the other ones as this is the ad copy people are going to be seeing on facebook. I usually start out with 2-4 ad copies, and 10-15 images.

Step 4:

Pretty simple. It’s the country you’re going to target. If you found an offer in your affiliate network only allowing US traffic, keep it at “United States.” You can change the country if you want to run a Canadian or Australian offer.

Step 5:

Since this email submit requires users to be 18 and older, I targeted 18-22 to find the best ad copy. It would be best to target male and female separately as your conversion rate will be different.  I will then make the same ad copy for 4 year increments. 23-27, 28-32, 33-37, and so on.

Step 6:

This is where you’re going to pick who you’re going to target. There are a lot of “Likes & Interests” to target. You just have to find the right ones for your campaign. I’ve never ran this campaign on facebook, it was just for demonstrating. People who have a zune might not have an iPad, so giving them one for free will interest them. Another example is for a dating offer is to target people who’ve liked “Travel” and in the ad copy have a title of “Need A Travel Companion?” This step is crucial in your campaign.

Step 7:

Since this isn’t a dating offer, we are going to leave it as it is. If you are going to a promote a dating offer on Facebook, it is required for you to choose “Interested In” and “Relationship” or else they’ll disapprove your dating ad.

Step 8:

An affiliate marketer always has to be organized so you should start trying to do that as well by naming campaigns a specific way. I usually start my budget at 3x the payout of the offer. Also, I pause the campaign so I can run it when I’m available to analyze the campaign stats. Since France has a different timezone, you shouldn’t run an offer at 3pm-9pm USA time, when it’s  9pm-6am there.

AffiliateNetwork-TypeOfOffer-LikeBasedOn-Country-Age-Age-Female/Male-1

Example: ewanetwork-dating-travel-usa-30-33-female-1

Step 9:

This is the final step of making a Facebook campaign. Start out by doing “Pay for Clicks” because you’ll only be paying for people who’ve clicked on your ad. “Pay for Impressions” is mostly used for international traffic since that’s generally cheap.

The way I usually bid, is by typing at $.10 and increasing it by $.10 each time. I keep increasing it until I stop seeing the yellow box from Facebook saying “We strongly recommend bidding. . . ” .

In this case, I went up until $.60 because that’s when Facebook stopped showing the message inside the yellow box.

Congratulations if you’ve read through this whole article! You now know how to make a Facebook ad. Keep trying and testing and then eventually you’ll kind a profitable campaign. The most important step in all of this is to take action. Don’t just say you’re going to do it tomorrow. Do it now! Visit my blog Palanchuk.com for tips, techniques, and strategies for Facebook ads and making money online.

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{ 72 comments }

ZK@Web Marketing Blog February 23, 2011 at 3:30 am

This is a great tutorial but I have a few questions on this……Facebook ads are more expensive than Google adwords if you bid at .60 cents and the suggest bid recommended by facebook is $1.12 to $ 1.91 then won’t your impressions be less ? the ad won’t be served if you bid at half the suggested price…..how profitable are you bidding at .60 cents ? what is the affiliate pay off per lead or sale for dating / mobile affiliate sites ?

Penny Bid Auction Sites February 23, 2011 at 4:47 am

If your CTR is good at FB ads, your cost per click dramatically drops, and it happens automatically. So it’s important to write a good ad and have a great photo.

Email List Building February 23, 2011 at 1:12 pm

Hey Dan,

I appreciate your post very much. The steps you outlined are very helpful to anyone who hasn’t done a FB ad campaign.

The step 9 is one that I liked a lot because I’ve never come across it before.

PPC Ian February 23, 2011 at 6:10 pm

I agree, step 9 was really cool. I have not taken that approach on FB bidding but will definitely try it out now!

Abhik February 23, 2011 at 9:39 pm

Yeah!! That’s a cool idea.
I normally used the suggested bid range for my campaigns, and was getting my budget crossed in very short time.

d3so February 25, 2011 at 12:41 am

I usually start my bid high and decrease it once I start getting clicks.

d3so February 25, 2011 at 12:40 am

Bidding by .10 until the message disappers is new but starting out CPC is a must.

Liberty Reserve February 23, 2011 at 9:07 am

No, really facebook ads are not much expensive than google adwords. Usually i bid at $2 in google adwords.

And i bid only $0.5 in facebook, so i prefer facebook to get my affiliate campaign successfull.

PPC Ian February 23, 2011 at 9:15 am

I tend to agree. Google AdWords is typically most expensive on a CPC basis. However, that’s not always bad. Sometimes you can pay a higher CPC but have lower CPA due to The high conversion rate of Google AdWords traffic.

Penny Bid Auction Sites February 23, 2011 at 10:54 am

You don’t always have to bid so high, you just have to find the low competition keywords and hit those hard.

PPC Ian February 23, 2011 at 6:14 pm

That is true in many instances for smaller advertisers, and a great stratwgy. However, at a certain advertising budget, the high competition, high stakes keywords become inevitable.

d3so February 25, 2011 at 12:44 am

I usually bid at around .50 to despite recommended bid. I haven’t gotten much clicks though.

d3so February 25, 2011 at 12:37 am

I bid substantially less than the recommended amount and I get a good amount of impressions. I think the quality is less though because the CTR is close to none or maybe my copy sucks.

Mathew Day February 23, 2011 at 4:18 am

I’ve heard Facebook is the hottest place to make money online right now, if you know what you’re doing. This post really has some helpful tips and outlined everything nicely. Appreciate it!

Mr. Get Money February 23, 2011 at 5:27 am

Well done sir. I have done ads via facebook before and ran a successful compaign but those tips are sure to help even more. Thanks.

d3so February 25, 2011 at 12:45 am

Advertising on facebook is a must with 500 million potential customers. I hear they’re still cracking down on affiliates.

Beard Trimmer March 13, 2011 at 8:14 pm

well facebook gets more and more people that use its marketing potential and huge user base which is there regular every day or so

Nate @ Strayblogger February 23, 2011 at 7:05 am

Your tip for increasing .10 until the yellow box goes away is great. Props for pillaging online when you’re only 15.

Penny Bid Auction Sites February 23, 2011 at 10:55 am

You don’t even need the box to go away. You can just set it at any amount and then increase it until you start to get impressions once it’s live.

Dan Palanchuk February 23, 2011 at 12:25 pm

I usually do that because I know for sure facebook will give my ads impressions and if the Ad is good enough, the CPC will go way down.

Tom February 23, 2011 at 7:46 am

John there are free video training sites which show you advance targeting and more. For example http://www.fbadvertiser.com has case studies on how to target and find the right demographics.

Email List Building February 23, 2011 at 1:15 pm

Thanks for that tip Tom.

This post, however wasn’t written by John but by Dan, a guest blogger.

How to Speak Japanese February 23, 2011 at 7:52 am

Thanks for providing this very good tutorial. Others would charge for this info.

Mr Get Money February 24, 2011 at 11:10 am

I wouldn’t be surprised if someone doesnt rip this idea and turn it into an ebook.

Network Scene February 24, 2011 at 9:33 pm

Jonathan Volk and Ian Fernando already tried creating Facebook ebooks. Not sure how they ended up doing but they exist.

d3so February 25, 2011 at 12:47 am

Volk’s ebook is good but not worth the price. I don’t know about ian’s.

Beard Trimmer March 13, 2011 at 8:16 pm

there are quite some books about this theme already so i think there would be pretty same info

d3so February 25, 2011 at 12:51 am

This only mentions the gist of facebook marketing and most fb ebooks mention most of what’s here.

Ethan February 23, 2011 at 8:47 am

Facebook is over saturated. Long time for ads to be reviewed and most capaigns get disaproved by Facebook.

Move along to other sources.

Dan Palanchuk February 23, 2011 at 10:48 am

Facebook won’t be saturated not for a long time from now. There are so many different ways to target from age to their likes & interest.
Best thing to do would be to build a squeeze page, gather their email and make money for long-term.

Email List Building February 23, 2011 at 1:18 pm

Dan,

Thanks for this additional information. It makes a lot of sense. I don’t think that anything really gets saturated to the point that Ethan suggests.

d3so February 25, 2011 at 12:50 am

Those who don’t give up on facebook will be the ones to profit.

Liberty Reserve February 23, 2011 at 9:05 am

I really failed to make a excellent facebook campaign, but always fail, and i loose money, and one more thing, the budget i keep is very low, and cpc is very high, and is that the reason, i fail to make my campaign fail?

Dan Palanchuk February 23, 2011 at 12:21 pm

The way I usually do it when I start a campaign is put the budget at 3x what the offer pays. If you get a lead, then it means you should optimize the campaign such as having more pictures (10), different titles(2), and/or different bodies(2). Overall, you should have around 40 ads or so. After you run the campaign, find the ad with the best CTR and run it a little bit longer and the CPC will drop down over time.

Email List Building February 23, 2011 at 1:21 pm

Dan,

That’s sounds like a lot of ads to have, 40 different ones. Do you creaste your own ads or does somebody else make them for you?

Dan Palanchuk February 23, 2011 at 2:03 pm

Up until now, I’ve been creating them by myself, up to 200 ads in one sitting, but I have researched and came across a facebook ad uploader which costs around $200 but well worth the money. If anyone wants to know where to buy it, go to my blog and click on “contact me” and send me a message.

Network Scene February 24, 2011 at 9:34 pm

I second this… the fb ad uploader is a must for anyone serious about going big on facebook.

d3so February 25, 2011 at 1:03 am

Can you help me build a campaign? ;)

gra komputerowa February 23, 2011 at 9:08 am

Thanks for this tip. I need this information.

PPC Ian February 23, 2011 at 9:08 am

Great guest post. One word of caution: be careful going to Google, Bing, and Flickr for images. You should avoid copy written images. The best way to do this is to go to iStockPhoto and pay a few bucks per image.

PPC Ian February 23, 2011 at 9:13 am

Also, I recommend building custom landing pages after you get your feet wet with direct linking. With custom landing pages, you have more control over the user and more opportunities to make money. However, I totally agree it’s more work too.

Email List Building February 23, 2011 at 1:25 pm

Hey Ian,

This guest post is great indeed, I agree. 9 very helpful steps to use. Thanks for adding your opinion and experience with PPC.

d3so February 25, 2011 at 1:00 am

Once you get a C&D just change the image.

fas February 23, 2011 at 9:22 am

Its not easy to make a profitable campaign but perfecting such a campaign will take time and effort.

Mr. Get Money February 23, 2011 at 9:46 am

True, then once you have a profitable campaign you only get short amount of time to tweak and optimize before the earnings slip. Then it’s on to the next one.

Dan Palanchuk February 23, 2011 at 11:07 am

Well said. Once you tweak a campaign to it’s fullest, that campaign is still making you money while you work on another campaign.

Dino Vedo February 23, 2011 at 10:27 am

CTR on facebook is hard to achieve but possible!

d3so February 25, 2011 at 1:34 am

Achieving a CTR is possible but achieving a decent CTR is very difficult.

Beard Trimmer March 13, 2011 at 8:20 pm

there was some studies of what have good conversions on facebook also some age targeting can change things allot

Clay Burt February 23, 2011 at 2:09 pm

I’ve used them before and for an international type campaign I was able to focus in on a very narrow target market for less than .15 each… Well worth it imo.

Mightee February 24, 2011 at 3:10 am

0.60$ per click is too expensive as you only have 1 credit card to run FB ads and 1 coupon can be used on that :(
i bid 0.01$ btw :/

d3so February 25, 2011 at 12:58 am

How are your offers converting?

Justin Dupre February 24, 2011 at 4:24 am

Got some interesting and great points here.. Must agree with the international time zone and how important to measure the url with split campaigns to see which ads works best.

Internetsalsa February 24, 2011 at 9:36 am

I believe you can also promote products from Clickbank….

Network Scene February 24, 2011 at 9:37 pm

Yep, you can promote products from anywhere.

d3so February 25, 2011 at 1:35 am

Except for products that go against their terms.

Keshab Paudel February 24, 2011 at 9:51 am

great post…:D
its like using fb with “making money” spirit

Beard Trimmer March 13, 2011 at 8:24 pm

well facebook has its financial potential for quite some time :)

and if you like that spirit you should try to use facebook and promote some products and see how is going for you

Allen Walker February 24, 2011 at 12:24 pm

Facebook Ads can be really profitable these days. :)

Thanks for sharing.

d3so February 25, 2011 at 1:37 am

Facebook ads has always been profitable you just need to put in the work.

Beard Trimmer March 13, 2011 at 8:25 pm

exactly, but user base of facebook is growing rapidly

Rob MacElroy February 25, 2011 at 7:13 am

I’ve had some experience in Facebook ads as well. Facebook is great because you can target your potential consumers so closely

Dan Palanchuk February 25, 2011 at 10:56 am

Yeah, which is good for campaigns.
I usually go for larger markets more than 100k in my campaigns. Maybe I should try semi-targeting it. I usually like to have campaigns that last longer than usual.

Aff Gossip February 25, 2011 at 5:02 pm

This article is pretty much useless.

This is like writing an article about how to log in to your email account. Extremely obvious and totally unprofitable.

Red Light On Ps3 March 1, 2011 at 7:49 pm

Quancast is also a great website where you can target you ads so that you can get and promsing conversions.

semmy @ Make Money Online March 6, 2011 at 6:53 pm

Hi thank you very much for your tutorial!! Thank you!!!

anitha March 7, 2011 at 10:59 pm

For facebook ad campaign we have to pay to make an simple ad too

Sceptical March 13, 2011 at 5:54 am

Hi,

I really would like to see how an email submit or dating offer, they usually pay out about $5 after registering (giving email address and maybe a few more fields) will make you money at $0.6 per click. Not every click converts obviously. Mostly only 1% converts. You do the math!

christina March 14, 2011 at 12:37 am

does it gives clicks for facebook adcampaign

Luke Green March 14, 2011 at 2:20 am

I use SAM (social ad manager) to create my campaigns and upload to facebook. There are no startup costs and they only charge 3% of spend. Great tool.

Nick March 16, 2011 at 5:20 pm

Nice post. I find Facebook ads convert better than most standard network media buys. But social recommendations from page likes and actions still perform better. getting some clients to put more budget into Facebook strategy is still a challenge. I posted an infographic on it recently…
http://www.smilespread.co.uk/smash-the-facebook-myths-an-infopitch-graphic/

anitha March 22, 2011 at 7:26 pm

if we use the facebook in right way it will earn a lot