For many real estate businesses, advertising on Facebook is one of the best ways to increase brand awareness, get new leads and deals and increase website traffic.
1. Understand Auction and Bidding
Without understanding the auction and bidding system on Facebook, it would be a coincidence to create an efficient ad campaign. It may sound overwhelming to understand each aspect of the auction and bidding system but it is not that hard to wrap your head around how things work and how you can set up your campaign in the best way possible.
Let’s use a buyer persona to better understand how auction and bidding work.
Bill is a 40-year-old business man from Chicago who spends lots of time on Facebook. Given his demographics, Bill is the target audience of hundreds of real estate teams that advertise on Facebook.
So out of hundreds of real estate advertisers in Chicago, how does Facebook determines which ads will be shown to Bill?
To determine, Facebook primarily takes two things into consideration:
- Each of advertisers’ bids – the higher your bid the more likely your ads are shown
- Relevance score
The impact of bid amount is very straightforward and self-explanatory. The higher you bid the more impressions you get. But there’s one more thing that you should take seriously: Relevancy.
What’s relevance score and how is it calculated?
Facebook does its best to show users ads that are most relevant to them. Facebook calculates the relevance score based on the reaction to ads from their target audience. If your target audience is clicking, commenting and liking your ads, your relevance score goes up. If they are not engaging and even hiding your ads from their newsfeed, your relevance score goes down. Your relevance score affects the number of impressions your ad gets as well as your cost per click.
Don’t be afraid of bidding high:
Bidding high doesn’t necessarily mean that you will be charged as high as you bid. Once you win an auction, Facebook will only charge you slightly higher than second highest bid in your auction.
Let’s say win an auction with a bid of $2 and the second highest bid in the auction is $1.2, Facebook will charge you approximately $1.3.
2. Choose the right objective
Choosing the right or wrong objective for your Facebook ad campaign can make or break your results.
Facebook has a robust algorithm that can predict who will be engaging with your content as well as how they will engage.
Your campaign objective will also determine the campaign features you can use. The options for optimization, targeting and bidding will differ depending on your campaign objective.
So, you should let Facebook know what you really want to get out of your campaign so your ads will be shown to the right users.
Let’s take a look at the campaign objectives that are most relevant to real estate businesses:
Brand awareness: Works best when you want to spread the word. Ideal for new real estate businesses that want to become top of mind in their market.
Local awareness: One of them best options for real estate businesses. With local awareness campaign objective, you can promote your business to people in your area.
Traffic: Use this to bring people to your page. It works best if you have a great landing page or website.
Lead generation: You can use this campaign objective if you want to increase the submissions for lead-gen forms on your website.
3. Use Audiences to Refine Your Targeting:
With your Facebook ad campaigns, you can target three different audience types:
- Core Audiences
- Custom Audiences
- LookAlike Audiences
Core audiences help target users based on their location, interest, behavior and connections. Make sure to refine your targeting by choosing the right locations, your target audience’s interest and their connections.
This is probably the best targeting feature Facebook offers. Custom audiences can help you tap into the most effective group of people: your existing leads. You can directly target your leads and past clients or anyone on your database by uploading an email list to your ad account. All you have to do is to put all the email addresses of people you want to target on an excel sheet and simply upload it to your account. By that way, Facebook will show your ad to those very specific people who you want to target.
As Custom Audiences help you tap into your existing leads, LookAlike Audiences will allow you to discover new people who are similar to your clients and leads. By uploading a customer email list on your Facebook Ad account, you can generate a list of Facebook users who are similar to your existing clients and leads based on their demographics and behavior. This is a great way to hyper-target the right people.
4. Measure and Optimize
Here are a few metrics to keep a constant eye on:
- Relevance Score
- Cost per Click
Check these metrics on a regular basis and optimize your campaign accordingly. Identify the best and worst performing ad images and copy. This will help you hone your messaging and create images that will resonate with your target audience.
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