The organic reach of Facebook pages is in steady decline, and has been for some time. As a result, we are hearing more and more from IFAs interested in using Facebook Ads for their financial marketing.
This is great news, as there is huge potential for financial advisers to generate new leads through this channel. The trouble is, there are lots of false claims out there about Facebook Ads.
As such, for people starting out in this form of financial marketing, there’s always a danger you get your campaign wrong and waste a lot of money in the process.
Here are ten of the biggest myths we’ve found in the financial sector, surrounding Facebook Ads:
#1 Facebook Ads Belong At The Bottom Of The Funnel
Yes, it’s true that Facebook Ads can be a great way for advisers to engage with potential clients at the beginning of their buyer’s journey.
However, Facebook Ads aren’t just effective for people who are becoming aware of their need for financial advice, or for your services. They are a powerful tool at each stage of the buyer’s journey: awareness, consideration and decision.
Consider setting up your ad campaigns with these stages in mind. For instance, your financial marketing could use retargeting at the bottom and middle of the sales funnel. This encourages previous site visitors to return to your website and convert.
For people at the top of the funnel, gear your financial marketing more towards generating awareness through your Facebook Ads. Just like you would in any ordinary post.
#2 Most Facebook Advertisers Are Focusing On Increasing Followers & Post Engagement
Some research was recently conducted by Socialbakers showing that advertisers are spending more on Website Conversion ads than any other ad type. Essentially, most advertisers are focusing on trying to get people to convert on their website.
This insight has an important implication for your financial marketing. Whilst Conversion Ads should form an important part of your Facebook Ads budget, remember that users’ news feeds are drenched in these kinds of ads all of the time.
So try not to put all your eggs in one basket. Consider reserving these kinds of ads for retargeting campaigns, and think about using other ad types for awareness-focused campaigns.
Source: Hubspot
#3 CPC Rates Are Going Through The Roof
The fact is, most cost-per-click rates have stayed fairly steady in recent years. There are only really two exceptions here: Mobile App Installs and Post Engagement ads.
This should encourage you to consider Facebook Ads in your financial marketing. Costs are steady right now, but they may go up in the future. There’s a good window of opportunity here to exploit a new potential revenue-generating channel. Don’t miss it!
#4 Lead Generation Ads Are Making Website Conversion Ads Obsolete
Since 2016, Socialbakers’ research showed that when it came to Lead Generation Ads, advertisers were allocating only 1% of their budget. On the other hand, there was a 50% increase in budget allocation for Website Conversion Ads in the space of one year.
Financial marketing certainly can benefit from Lead Generation Ads, especially since they present opportunities to convert prospects without requiring them to leave the Facebook app.
Adoption of this approach has been minimal so far. However, that might be a good thing. It might make your financial marketing stand out more from other firms, who will probably rely on Website Conversion Ads (which users are familiar with and experience on a daily basis)
#5 With The Rise Of Video in Social Media, Facebook Ads Are Now Mostly Video
There was certainly a 150% increase in budget allocation for Video ads between 2015 and 2016. However, videos still only comprise 12% of marketers’ total ad spend.
Facebook wants financial marketers and other advertisers to use video, because that’s what their users like to engage with. However, that’s not reflected in the overall budget picture for advertisers.
There is a simple explanation. Video takes more time, money and resource to produce than other content forms. Again, this could present a window of opportunity for you. How many of your competitors will be using video in Facebook Ads?
Not many. There’s a real opportunity to stand out here to your target market, even if it costs more.
#6 Advertisers Prefer Ads Which Keep Facebook Users On Their App
The largest chunk of advertisers’ Facebook Ads budgets goes towards Website Conversion ads (39% in 2016). I.e. ads which take the user out of Facebook and onto the advertiser’s website.
Understandably, Facebook wants to keep users on their platform. Most financial marketers and advertisers, however, understandably still want to take people onto their own turf. Use this trend to your advantage by leveraging Leads Ads, encouraging conversions on Facebook’s app itself.
Phil Teale is the Sales & Marketing Manager at MarketingAdviser, an agency specialising in marketing for financial services – and especially for financial advisers. Along with our sister company, CreativeAdviser, we also provide bespoke website design, branding, graphic design and video production services to financial clients.
Contact us on 01923 232840 or email me: phil@creativeadviser.co.uk