Facebook is the number one social media site in the world, with 2.7 billion monthly users!

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With a reach like that, you might be wondering if you should advertise your business on Facebook. Knowing a few key points will help you decide.

Who Are Your Customers?

First, compare your target audience to Facebook user demographics.

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Some Facebook User Stats

  • 72.8% are 18–44 years old

  • India has the most Facebook users (320 million) followed by the United States (190 million)

  • Canadians are among the most active users of Facebook: 74% check their feed daily

  • 56% of users are male and 44% are female

If these stats match up with the customers you want to reach, then using Facebook ads might be a good idea!

Meet Jasper

Jasper just started an online subscription plant service. Customers will receive a new plant every month!

Jasper is trying to decide whether Facebook ads might be a good marketing strategy.

Graphic image of man with farmer's hat, holding plant, giving peace sign with plants in background.


What should Jasper do first?

What Terms Are Important To Know?

Jasper needs to become familiar with a few terms:

Campaign — The period of time during which you run your ads.

Impression — Each time an ad displays on a user's screen, that counts as one impression.

Jasper the farmer holding a plan and standing by large book that says Ad Terms.

Click-Through Rate (CTR) — When a user clicks on an ad, even if they don't do anything else, it's considered a click-through.

CTR is the number of clicks divided by the number of impressions. So, if an ad is displayed 100 times and 10 people click on it, that's .10 or 10% CTR.

The average CTR across all industries for a Facebook ad is 0.9%.


If Jasper gets 40 clicks out of 500 impressions, is that a good CTR?

How Do I Set Up Ads?

Ads can be purchased from a Facebook Business Page or from the Ads Manager.

1. Business Page Ads

Best for: Small businesses that manage their own Facebook business page, such as a local winery.

  • Promote your page

  • Get likes & comments

  • Boost posts, videos & events

  • Add buttons such as "Shop Now"

  • Link to your business website

2. Ads Manager

Best for: Larger companies with more than one location or supplier, such as a department store chain. A business page isn't required.

  • Launch ad campaigns

  • Track analytics

  • Choose from a variety of ad types

  • Optimize ad placement

  • Launch & track campaigns from app

Image that says Click Here with orange arrow. Green button that says Order Now with hand clicking on it.

What Types Of Facebook Ads Are Available?

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Your video can include sound, but it's best to include subtitles as well because 85% of videos are viewed with sound muted.

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Display 2-10 images or videos within a single ad, each with its own link.  Users swipe or scroll through to view.

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You can use your own image or choose from stock photos. Facebook supports many image types (JPG, BMP, TIF, etc.).

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Display items from your product catalog. This type of ad includes "Instant Experience" for smartphones, which allows the user to open to full-screen and purchase items.

Whichever ad type you choose, it's most important to target your desired audience. Facebook has 3 options.

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  1. Core audience — Define your audience based on age, gender, interests or geography.

  2. Customized audience — Reach people who have already been customers.

  3. Lookalike audience — Find new customers who have similarities to your best customers.


Which of these target audiences would be best for Jasper's new business?

How Much Does It Cost?

As with with most things, the more you spend, the more you get. You can set daily and "lifetime" budgets.

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A daily budget is the average amount you’re willing to spend each day during your campaign. When you hit your daily limit, Facebook will stop running your ad until the next day.

A lifetime budget is the total amount you're willing to spend for your ad campaign.

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  • $1 a day = minimum starting point if you only want impressions

  • $5 a day=minimum starting point if you want clicks and views

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The more you pay, the more likely your ad will actually be shown.

This is because Facebook ads operate on an AUCTION BID system. If there are other businesses targeting the same type of customer, and they set their price higher than you, their ad will be shown more often and at better times of day.


Jasper wants people to click on his ad and view his website. His monthly advertising budget is $200. Can he afford a Facebook campaign?

Take Action

You've got all the info! Now it's time to make a decision.

If your demographics match up and you have an advertising vision and budget, Faceboook ads might be right for you!

Lots of plants

To learn more about Facebook ads, visit their Business Help Pages.


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