SM Agency

SM Agency

About the Author

SM Agency is a full-service digital agency specialising in creating emotional experiences through marketing. We rely on the newest neuroscientific methodology and technology which allow us to get +97% precision in audiences’ emotional understanding and +250% campaigns performance growth. Our experienced team helps brands of any nature connect with customers at a deeper level and get the most out of their marketing campaigns.

Do you feel that the number of responses you're getting for your Facebook ads is decreasing each and every single day? Are you finding it harder to convert people from your Facebook ads into paying customers than you did two years ago?

If you think it's hard now, reliable previsions show that it is going to keep getting harder and harder.

In this article, we are going to discuss how to generate profit with Facebook ads for small business in 2022.


Hi there, and welcome back to Serendipity Marketing. We're a digital marketing agency with a mission to help small businesses grow by applying psychology to their marketing strategies.

Before we get started, please go ahead and follow us on LinkedIn, Facebook, or Instagram.


Now before we dive into the details on how small businesses can still do well with Facebook ads in 2022, let us go over some basic stats.

Facebook has over 7 million active advertisers, according to Facebook's Chief Operating Officer Sheryl Sandberg, and 2.4 billion active users.

This basically means that Facebook has only 342 active users per advertiser.

Not only are more people promoting ads, but it's getting harder and more expensive to get clicks.

Now, when you look at the cost in clicks Facebook ads CPC on news feeds have gotten more expensive this year.

In 2018 Q2 as of roughly 0.43¢, in Q2 of 2021 0.64¢. And the CTR of news feed ads has also decreased.

In Q2 of 2018 it was 2.24%, in Q2 of 2021 it was 1.20%.

According to Instapage, the average Facebook ad converts roughly 9.21% across all industries.

You would have to pay on average $64 to get nine conversions.

Conversion doesn't necessarily mean a sale either in this context, it could be just collecting an email.

So, it doesn't necessarily mean you're making a positive ROI.

The real question that comes to mind then is; if you're a small business, how can you still profit from Facebook ads, even though ads in many cases are getting less clicks and are getting more expensive?


1. Don't go for profit in the first contact with a prospect


It used to be that you would just put ads in front of people, you would send them to your product or service page, try to get them to convert, and you're making money.

And that's now very expensive.

A great way that we generate sales that we found to be much cheaper is to first take an ad on where Facebook drive users to our educational piece of content where the goal is to educate them, build trust, and leverage our authority.

Then we remarket them, showing them an ad that drives them to our product or service page.

Even though we had to show that same user ad twice, we found that the overall cost to conversion is far less than when we send them an ad in the first place.

So, instead of sending them an ad straight away, we first send them an ad that goes to an educational piece, then we market them.

And this is is for us when you look at a conversion standpoint it's cheaper and more cost-effective than just having ads to send people to a product or service page straight away.


Build relationships through trust


Think about this; people see so many ads on Facebook every day. And most of them advertise a product or a service.

This makes users desensitized to all the ads they see, and it makes them more sceptical about who to trust with so many similar options available.

By driving people to an educational piece of content, and providing them real value and solutions for free, they will perceive you as a trustworthy authority.

This feeling of trust will make them stop the retargeting ads and will induce them to purchase your product or service as they know you already and see you as a trustworthy solution to their problems.

Just bear in mind, that people are looking for solutions to their needs and issues and it isn’t anymore just about the product or the service, it is about getting them to trust you are going to provide them with the right solution.


2. Use retargeting for your ads for really qualified prospects


One thing we've done to generate large revenue from Facebook for our clients and for us is our highest ROI converting campaign.

When someone visits a checkout page and they don't buy, we create a video that shows them what it would be like if they were a customer.

Now, if our main offering was mainly using logic to convince them to buy, our video will mainly use emotions.

You may be wondering, why that?

The fact is that if they didn't convert from the mainly logic ad in the first place, sending them a remarketing campaign or video using mainly logic again probably won't work, so we do the opposite.

If our landing page is trying to sell through mainly emotions, our remarketing video uses mainly logic.

In addition to that, we make sure we add in up-sells and down-sells, which increases the LTV, and allows you to spend more money on Facebook ads for small business.


Alright, now before we move on with the next Facebook ads for small business strategies, have you ever thought about how much you should invest in marketing to generate constant business growth? Click the button below to calculate the ideal marketing budget you should allocate for higher visibility, engagement, and profit.

How much should you invest in Digital Marketing?

3. Use video ads


Video ads are way cheaper to expose your brand to people because even if they don't convert right away, you're getting your brand across, and as they say in marketing the rule of seven, the way you build a brand is by having someone see and engage with your brand seven times.

If you use video, you're going to get way more engagement for the price because Facebook really wants to push video ads over text-based ads.


4. Use lookalike audiences


Once you have people that are converting, use the 1% lookalike audience on Facebook. This will allow you to find other people who are very similar and have a higher probability of converting.

If you're not using lookalike audiences, you're doing a ton of ads and blowing a ton of money.

Lookalike audiences will help you fine-tune and save you a lot of cash.


5. Test different creatives more often


You'll be surprised at the difference in performance when you rotate up your creatives at least once a week.

When we run some Facebook ad campaigns for our clients and for us, we're rotating up creatives two to three times a week on the low end and on the high end, and sometimes rotating up creatives daily.

It's so effective that by just cranking out so many creatives, you'll find that they don't have as much fatigue and your ROI is better.


6. Keep it fresh


It isn’t just about your banner and creativity. It's what are your landing pages? What's your copy? Are you changing things up? Are you trying a different message? Are you trying to target a new audience?

If you continually test and tweak and keep your ads fresh not just on Facebook but remember it's a whole funnel, you're landing page, the copy on there, the testimonials, the reviews.

Changing all that kind of stuff up, a lot of times brings light into your campaign and will cause you to get more conversions.


7. Monitor your Facebook ad's frequency


If people keep seeing your ads multiple times, you're either not reaching new people, or people keep seeing your ads without converting.

You need to stop that.

Those two factors will make your ad score decrease and make your cost increase.

So, if you fix that you're going to be better off.


If you need help to maximise your Facebook ads campaigns to grow your business in terms of visibility, engagement, and profit, contact us today and speak with one of our digital marketing experts to see how we can build the bridge between the point you’re standing at right now and your goals.

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