How to Make Facebook Ads Profitable
"How much do we need to spend on Facebook ads to be profitable?"
This is the number one most common issue I hear brands mention during the sales process.
While you can't guarantee results or predict the future (Zuck's algorithm/platform has a mind of its own), you can use historical data to understand the likelihood of profitability.
At Brighter Click, we've created a paid media profitability calculator to guide this conversation using historical data.
Tl;dr
Use the last 90 or 180-day data to see the current likelihood of profitability.
--
More importantly, uncover the bottlenecks in the funnel.
➝ If CTR is low and CPM/CPC is high, check the ad frequency. It's likely the ad creative is fatiguing.
➝ Analyze the landing page view percentage; a low figure might indicate a slow load speed.
➝ If CTR is high and the add-to-cart rate is low, the ad creative may not align with the landing page, and/or the landing page messaging needs refinement.
➝ Poor checkout-initiated progression may mean technical issues, a complex checkout process, or a lack of trust signals.
➝ Good ad KPIs and website conversion rate but low ROA? Check the AOV and COGs.
Our calculator extends beyond determining ad spend.
We use these insights to guide clients on funnel and business optimization needed to scale profitably.Forecasting ad spend profitability is vital for long-term success.
Click the button below the video to access our free eCommerce Profitability calculator.