Revamping Your Facebook Ad Strategy: How to Increase Conversion Rates

Are your Facebook Ads not delivering? You might notice through benchmarking that your conversion rate is worse than the competition or you’re spending more on ads than they bring in. 

Keep reading to learn how to revamp your Facebook Ad strategy to maximize your ad spend and generate more conversions.

What’s an Ideal Target for a Facebook Ads Conversion Rate?

Your conversion rate (CVR) describes the percentage of visitors that become customers after reaching your site. So, for example, a conversion rate of 10% indicates that out of 100 visitors, 10 of them became customers.

The overall CVR for Facebook Ads is 9.21%. However, An ideal Facebook Ads conversion rate varies by industry. For example, there is a significant difference between the industry average for healthcare, 11%, and the average for travel & hospitality, 2.8%.

So what’s an ideal CVR for your business? You’ll need to focus on data from your peers, either from studies or from your Varos dashboard. 

Our platform provides real-time competitor conversion rate benchmarking so you’re always aware of how your ads are performing in the full context of your industry. Below, you can see how our platform compares your competitors’ results right alongside your own.

How to Revamp Your Facebook Ad Strategy to Increase Conversions

So are you lagging behind the industry average Facebook Ads CVR? Fortunately, your CVR is not set in stone and can be improved by analyzing and upgrading several aspects of your campaign.

A Facebook Ad campaign strategy requires carefully evaluating and enhancing all the various moving pieces involved in converting someone on Facebook into a new customer.

Evaluate Your Ad Spend

The most straightforward reason why your CVR might be lacking is that you’re not spending enough. Spending too little won't give you enough opportunity to find the right people ready to become customers.

Your Facebook Ads costs will vary by several different variables, but you should consider the average ad spend for your industry to see if you’re within the right spending range. Below, you can see how the Varos platform breaks down the average spend:

Reconsider Your Objectives

Facebook has three objectives, and they greatly determine how your ad is treated by the platform: Conversion, Awareness, and Consideration.

You shouldn't use Awareness or Consideration if you’re trying to boost conversions. Awareness ads are often appealing because they’re usually cheaper, but that doesn’t mean they’ll generate enough conversions to meaningfully grow your business.

Evaluate your specific business goals and make sure your chosen objectives reflect them.

Fine-Tune Your Target Audience

The audience for your Facebook Ads needs to be accurate for your ads to be effective. Therefore, you need to focus on demographics and interests proven to be interested in your products or service.

Not only will the right audience be ready to make a purchase, but you’ll also improve your ad relevance score with Facebook, which means you’ll spend less to win the ad spot when compared to less relevant ads.

How can you improve your audience targeting? Look at historical data of your existing customers or send out surveys to better understand your customers’ interests. You can also improve your checkout process with a quick questionnaire after the purchase is made to learn more about your customers.

Enhance Your Landing Pages

The best converting Facebook Ads are those that leverage the above techniques and send traffic to an effective landing page. 

You could have the most compelling ads imaginable, but if you’re directing traffic to your homepage or generic product page, you’ll miss out on converting your visitors into customers.

Let’s quickly go over the elements of a landing page designed to convert visitors into customers:

• Deliver on the ad's promise: The worst thing you can do is have an ad with a specific promotion, sale, or other types of promises, which leads to a landing page entirely unrelated to the ad. Even if your ads generally focus more on your value proposition, your landing pages should still follow up on that messaging.
• Design specialized landing pages: Every Facebook Ad should have a specialized landing page designed just for that ad. For example, the landing page should follow up on the initial ad to highlight product features, let people sign up for a trial, or serve as a sales page before sending users to finish the transaction and become customers.
• A/B test frequently: We’ve talked about A/B testing frequently, and that’s because it’s an extremely powerful tool to make decisions beyond your assumptions about what will work. Also known as split testing, an A/B test will send half your traffic to one version of the landing page and the other half to slightly different versions. It’s best to test one change at a time, give it a few weeks or a month, and then evaluate the results.

Team Up with Varos for Real-Time Facebook Ads Benchmarking

The first step towards improving the conversion rate of your Facebook Ads is understanding if you’re falling behind the rest of your industry. Your historical results may indicate a decline, but a strong understanding of the industry benchmarks gives you the whole story behind your results.

Once you have the industry benchmarks, you can then start putting the above strategies to work, enhancing your ads and increasing your conversion rate.

Varos is the industry leader in providing real-time eCommerce benchmarks for a wide range of platforms and industries. Our platform keeps you informed about where you stack up compared to your competitors so you can catch up or pull even further ahead. You can see below how Varos compares your important KPIs right alongside your competitors.

Ready to discover how Varos helps eCommerce and SaaS companies gain a competitive edge? Try Varos today, or reach out to us to learn more.

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About the Author

Yarden Shaked

Co-founder & CEO at Varos

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