Is Facebook Marketing Worth It?

There are many ways to do online marketing: SEO, PPC, email marketing, social media marketing, and more. Today, we’re going to talk about social media marketing, specifically Facebook marketing. I want to answer one question for you: Is Facebook marketing worth it?

When we talk about Facebook marketing, it falls into two categories: organic and paid advertising. Organic marketing on Facebook involves making a Facebook page, creating great content such as pictures and videos, building a community, and then finally having that community do something such as go to your website. (This is part of your online marketing funnel.)

The second type of Facebook marketing is pay-per-click. This is somewhat similar to Google Ads: you make an ad, show it to Facebook users, and if someone clicks on your ad, you are charged a small fee. Then, you need your visitor to do something like make a purchase on your website.

In this article, we’re going to focus on organic Facebook marketing.

Organic Facebook marketing

What are the steps for organic Facebook marketing?

Start a Facebook page

Many people think that Facebook marketing is as easy as starting a Facebook page and then the money will start rolling in.

Many people take the “build it and they will come” approach.

In reality, that’s far from the truth.

There are many other steps that you have to do in order to monetize a Facebook page.

Create content

To get people to visit your Facebook page or view your brand you must create content. There are a few types of content you can create on Facebook.

Text content: This is probably the most common type of content that is created for Facebook. If you use images or videos, you will most likely have text that goes along with it. In order to write great text, you really need to have a strong understanding of copywriting principles.

Image content: You see images all the time on Facebook. Many times, these images are “quote images” – an image that showcases a quote on some kind of background. In order to make image content, you will need to have some type of graphic design skills or at least an eye for graphics.

Video content: Video content is another way to advertise on Facebook. Using video can be as easy as using your smartphone camera and then uploading it to Facebook. More advanced videos may also include video editing.

Promoting content

After creating content, you will have to promote whatever you make. I’ll talk about this a little bit more below, but remember that Facebook added changes a few years ago so that not all of your Facebook fans will see your content – you’ll have to pay Facebook for the privilege of advertising to the community that you spent time building.

Building a community

So, you’ve created content and promoted it. That’s it, right? Nope. Now you have to interact with your community. You need to get people to click those “like page” and “follow” buttons.

Also, you’ll need to respond to any comments that show up on your page.

Get your Facebook fans to act

Now you have to make your Facebook audience act in some way that helps your business’s bottom line. There are a few ways of doing this such as visiting your website or using Facebook messenger to set up a call or face-to-face meeting.

Those are the steps that you have to take to do organic Facebook marketing, but is it even worth it?

How effective is organic Facebook marketing?

You’ve spent time creating awesome content. Maybe you even spent time building a community and you have fans on your page. How can you turn those Facebook fans into paying customers?

First, let’s look at engagement rate on Facebook. That is: how often do Facebook fans even interact with your content in the form of liking or commenting on your pages.

Let’s assume that engagement rate is always higher than actual click-through-rate, the number of people that actually get off Facebook and go to your website page. After all, you don’t visit every link that you “like,” right?

In order to make this a quantitative measurement, let’s calculate engagement rate as:

Number of Reactions / Number of Facebook Fans on a post =
Engagement Rate

 

Let’s look at a local insurance company.

This is how many people like the Facebook page:

facebook marketing insurance company likes

Let’s look at a few posts from this Facebook page.

Here is one post.

facebook marketing insurance company 1 post 1

This post has 8 engagements giving this post an engagement rate of 2.3%!

Here’s another post:

facebook marketing insurance company 1 post 2

This has an engagement rate of 0.3%. Less than one percent!

And one more:

facebook marketing insurance company 1 post 3

An engagement rate of 1.5%.

Let’s pause for a second and think about this. You’ve spent all that time to create content, promote it, and build a community. Now, the content that you make only gets 2% engagement if you’re lucky. And even fewer people will actually become paying customers.

Is it worth it to you to spend a year creating content to only get ~3 purchases?

What kind of ROI is that?

Why is Facebook engagement so low?

Remember that Facebook needs to make money. One way they do this is by charging you to “boost” your posts so more of your fans will see your content. Experienced online marketers know that this is a way to waste your marketing budget.

What about other examples?

We just looked at a small insurance company above. You might be thinking “but what does engagement look like for a bigger company?”

Here’s a bigger insurance company and its likes.

facebook marketing insurance company 2 likes

Here’s an image with an engagement rate of 0.001%. That’s a thousandth of a percent.

facebook marketing insurance company 2 post 1

And another image –  an engagement rate of 0.001%.

facebook marketing insurance company 2 post 2

So far, we’ve looked at two insurance companies. I showed you the raw data and you can make a decision for yourself as if this kind of marketing is worth it to you. But I don’t think it’s worth it to spend all my time building a Facebook page to just get a few people actually interacting with my brand (and even fewer becoming paying customers.)

Okay, but maybe Facebook just isn’t good for insurance companies.

Is Facebook effective for other financial services?

Let’s look at an investment page on Facebook with a pretty decent sized following.

facebook marketing investment company likes

Here is a post:

facebook marketing investment company post 1

This post has an engagement rate of 0.02%.

And finally, one more post.

facebook marketing investment company post 2

This post also has an engagement rate of 0.02%.

And remember, that’s for a page with 210,851 likes.

So, is Facebook marketing worth it?

If you are a business, you absolutely must have social media profiles. Having social media profiles builds trust with potential customers. Social media profiles like Facebook also provide social signals to search engines that help your SEO.

That said, organic Facebook marketing is rarely worth the time, resources, and effort needed. Facebook per-pay-click advertising can be worth it, but in my opinion, time spent building a community on Facebook could be better spent doing content marketing or building a mailing list.

 

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